Ascenda Capital has purchased two apartment communities totaling 235 units in the East Bay cities of San Leandro and Hayward. The assets were both sold by Trion Properties in deals totaling $86.5 mil ($368k/unit).
75-85 Estabrook, San Leandro |
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The larger deal was for Metro 77 & 85 Apartments, a 146-unit community located at 77-85 Estabrook St in San Leandro that traded for $53 mil ($363k/unit). Trion acquired the community in Mach 2017 for $36 mil ($246.5k/unit).
“During ownership, we completed a comprehensive renovation, repositioning, and rebranding of the community,” said Max Sharkansky, Managing Partner at Trion Properties. “Our strategic value-add enhancements to the 1960s vintage asset included new signage, modern paint schemes, upgrades to the pool, gym, leasing offices and hallways, and modernizing the interiors of the units. These renovations and improved operations have greatly enhanced the community’s appeal, driving strong occupancy rates and ultimately attracting the buyer to this property.”
Metro 77 & 85 is within walking distance of the San Leandro BART station and in close proximity to Interstate 880 and Interstate 580, providing convenient access to employers in Oakland, San Francisco, Fremont, Tri-Valley, and Silicon Valley.
Units are equipped with newly renovated interiors, stainless steel appliances, quartz countertops, vinyl plank flooring, large balconies and patios, and walk-in closets in selected units. Community amenities include package lockers, a pet play area, a fitness center, laundry facilities, a swimming pool, and assigned parking.
Robert Johnston and Adam Levin of Levin Johnston of Marcus & Millichap represented Trion Properties in the deal.
The other sale was of Andina Apartments, an 89-unit property located at 1182 E St in Hayward that sold for $33.5 mil ($376.4k/unit). The firm acquired the 89-unit apartment community in 2019 for $28 mil ($314.6k/unit).
The firm’s value-add repositioning of the community, including 65% of the individual units, provides the buyer with a cash-flowing asset and opportunity to complete a proven renovation program, commented Sharkansky. The firm made capital improvements to the property's unit interiors and common area exteriors to meet the standards of today’s Bay Area renters. According to Sharkansky, of the 89 units, 58 are fully renovated and are achieving a more than $225 premium over unrenovated units at the property.
Unit amenities include quartz countertops, stainless steel appliances, in-unit washer/dryers, new cabinet doors, vinyl plank flooring, new bathroom vanities, upgraded plumbing hardware, new lighting fixtures and ceiling fans, reglazed tubs, Bluetooth locks, and an oversized private patio or balcony. Community amenities include covered parking, a swimming pool, dog park, two rooftop decks, and outdoor barbeque and picnic areas.
Brett Betzler of Berkadia Institutional Solutions represented Trion Properties in the transaction.
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