Trion Properties has reentered the Sacramento, California, market after four years with the acquisition of the Bella Pointe Apartments.
The Los Angeles-based private real estate equity firm acquired the 136-unit community for $18.25 million with equity partner Walker & Dunlop. It is the firm’s fourth multifamily acquisition in just over three months.
The community, located in Rancho Cordova, is in close proximity to the San Francisco East Bay, where Trion Properties owns seven multifamily properties and has deep relationships.
“Sacramento is currently the fastest-growing city in California and has proven its resilience during the pandemic,” said Max Sharkansky, managing partner at Trion Properties. “As one of the most affordable major markets in California, the city has an in-migration of roughly 25,000 residents annually and less than 2,000 units under construction, making Bella Pointe a strong and valuable addition to our portfolio.”
In December, Yardi Matrix reported Sacramento as one of the strongest markets for rent growth year over year at 5.9%. Sacramento also led the major metro markets with 0.9% growth month over month in November. According to Farhan Mahmood, managing director of acquisitions at Trion Properties, the Sacramento region also has seen a gain in jobs.
“We identified the city of Rancho Cordova as a submarket within Sacramento that has tremendous potential,” said Mahmood. “With a population of over 70,000 and a 3.5% vacancy rate, Rancho Cordova is home to well-educated residents and up-and-coming professionals along with various Fortune 500 companies.”
The community includes one- and two-bedroom apartments with walk-in closets, a swimming pool, two laundry facilities, courtyards, and a covered parking lot.
“Built in 1978 and situated on nearly 6 acres, Bella Pointe is an ideal candidate to implement our proven value-add strategy and upgrade the property to current market standards,” Mahmood added.
Trion Properties also plans to implement a number of exterior renovations, including roof replacement, asphalt repairs, a new swimming pool deck, and HVAC replacement.
