Sierra Village, featuring 185 units in an attractive 1980’s garden style property, with a superior amenity package to the competitive set presented an exceptional value-add opportunity upon acquisition. The asset was owned by a Texas-based operator with little presence in Sacramento who had recently purchased the asset as part of a pool of properties via a receivership sale. As such, the property had low rental rates, high expenses, and below-market occupancies. Trion saw an opportunity to create value through effective management and strategic renovations. Trion’s experienced vertically integrated management team, implemented interior renovations, professional management practices and cost control efficiencies to maximize the asset’s operation. Within less than 3 years of acquisition, Trion had increased net operating income by approximately 70% operating at approximately 98% occupancy. Upon closing of the sale in September 2016, the project level IRR will be approximately 58.46%, with an equity multiple of 2.71x on a 3-year hold of the asset.
- No. of Units: 185
- Acquisition Date: January 2014
- Acquisition Price: $9,300,000
- Renovation Costs: $1,200,000
- Project Level IRR: 56.98%
- Project Level Equity Multiple: Multiple: 2.71x