Opportunity to acquire an asset in a bedroom community of Sacramento through the purchase of the nonperforming bifurcated construction loan and acquisition of the property through subsequent workout with the Borrower. The 16-unit townhome property is fully stabilized and requires no additional renovations upon acquiring title. Furthermore, the property has a recorded tract map and DRE white slips creating value for an investor with a condominium exit strategy. The nonperforming loan was acquired at approximately 35% of its Unpaid Principal Balance and Trion is forecasting an IRR of 50% based on an expected 12-month investment horizon. The property will be listed and sold with the procuring broker upon completion of workout with the Borrower.

Trion Properties, through an affiliated entity, has recently acquired a non-performing loan secured by a 30-unit multifamily apartment building located in a dense, urban infill location in the Exposition Park submarket of the City of Los Angeles. Trion is in the process of implementing its overall strategy of acquiring title to the Property through foreclosure or workout with the existing Borrower and undertaking renovation and re-tenanting measures. Upon completion of renovations and stabilization of the asset, the Property will be listed and re-sold. The non-performing loan was acquired at approximately 80% of its Par Value and Trion is forecasting a 50% IRR based upon an expected 12 month investment horizon. More details on the asset will be provided upon acquisition of fee title to the Property or upon an alternative exit from the transaction.

Opportunity to acquire an asset in a dense urban in-fill location specifically in the Highland Park submarket in the City of Los Angeles through purchase of the nonperforming debt on the asset and acquisition through subsequent foreclosure or workout with the Borrower. At acquisition the asset was approximately 40% vacant with an additional 20% of bad debt from the occupied units and required extensive renovation prior to lease-up and increase of rent stream. Upon completion of renovations the asset will be listed and sold with the procuring broker.

Acquired an asset in a dense urban in-fill location specifically in the Hyde Park submarket in the City of Los Angeles through purchase of the nonperforming debt on the asset and acquisition of the fee simple title through subsequent foreclosure. At acquisition the asset was approximately 43% vacant and required extensive renovation prior to lease-up and increase of rent stream. The property was extensively renovated and brought to 90% occupancy at which point it was listed with the procuring broker and sold for $2,125,000.

Acquired an asset in a dense urban in-fill location specifically in the Baldwin Village submarket in the City of Los Angeles through purchase of the nonperforming debt with a concurrent Deed in Lieu of foreclosure. At acquisition the asset was approximately 40% vacant and required extensive renovation prior to lease-up and increase of rent stream. The property had over 400 violations with the Los Angeles Housing Department and was pending admittance to the Rent Escrow Account Program. The violations were cured and the property was prevented from entering the Rent Escrow Account Program. The property was extensively renovated and brought to 90% occupancy at which point it was listed with the procuring broker and sold for $2,550,000.

Acquired an asset in a dense urban in-fill location specifically in the Chesterfield Square submarket within the City of Los Angeles through the fee simple purchase out of a local Lender’s REO portfolio. At acquisition the asset was approximately 79% vacant and required extensive renovation prior to lease-up and increase of rent stream. The property was extensively renovated and brought to 95% occupancy at which point it was listed with the procuring broker and sold for $1,155,000.

Acquired a poorly managed asset with heavy deferred maintenance and average rents of $1,100 per unit (21%) below market rates. The asset had the lowest rents in the submarket in comparison to similar Class “B” properties. Spent $6,000 per unit for interior renovation, specifically new kitchen cabinetry, ceramic tile countertops, laminate flooring as well as several other new finishes which will allow the asset to generate higher rents. Upon completion of renovations and increase of scheduled gross income by 23%, the asset was sold for $12,850,000.

Acquired an asset with deferred maintenance and average rents of $750 per unit, $650 (47%) below market rates. Spent $8,300 per unit for interior unit renovation and minor common area upgrades. Upon completion of renovations and increase of scheduled gross income by 90%, the asset was sold for $3,250,000.

Acquired an asset in a non-rent control market with average rents of $435 per unit, $369 (46%) below market rates. Spent $2,500 per unit for interior unit renovation and make minor common area upgrades. Upon completion of renovations and increase of scheduled gross income by 83%, the asset was listed and sold for $3,495,000.

Acquired an asset with deferred maintenance and average rents of $764 per unit, $436 (36%) below market rates. Spent $7,500 per unit for interior unit renovation and minor common area upgrades. Upon completion of renovations and increase of scheduled gross income by 27%, the asset was sold for $2,250,000.