Ascenda Capital Expands California Footprint
Totaling 234 units, the two properties will be converted to affordable housing.
Ascenda Capital has acquired two multifamily communities in California’s East Bay for $86.5 million. The properties, totaling 234 units, are located in the East Bay cities of San Leandro and Hayward, and were sold by Trion Properties. Using value-add renovations and operational strategies, Trion had achieved IRRs of more than 25 percent.
Rents in the two complexes will be rolled back for existing tenants who meet income requirements and apartments will be rented at below market rates for newcomers.
“We renovated a substantial percentage of the units in these properties,” Trion Partners’ managing partner Max Sharkansky told Multi-Housing News.
Portfolio Breakdown
Situated at 77-85 Estabrook St. in San Leandro, Metro 77 & 85 Apartments is a 146-unit community that sold for $53 million. The two- and three-story frame apartment community was built in 1963. Trion acquired the property for $36 million in 2017. Apartments feature stainless steel appliances, vinyl plank flooring, large balconies and patios and, in select units, walk-in closets. A fitness center is among notable amenities of the property. Metro 77 & 85 is located steps from the San Leandro BART station and near I-880 and I-580, offering quick commutes to Bay Area job hubs.
Located at 1182 E St. in Hayward, Andina Apartments is an 89-unit community that changed hands for $33.5 million. The three-story frame rental property was built in 1970 and was acquired by Trion for $28 million in 2019. Of the units, 58 are fully renovated and command a more than $225 premium above unrenovated apartments’ rents. New cabinet doors, new bathroom vanities, upgraded plumbing hardware, reglazed tubs and Bluetooth locks are among the features and finishes of apartments. A pair of rooftop decks are among the prominent amenities of the community. The location affords easy Bay Area access, due to being near I-580, I-880 and the San Mateo Bridge.
“Given what’s happened in the Bay Area over the last couple years with the pandemic and the work-from-home-driven economy, a lot of asset-stabilized buyers have taken their money elsewhere, to places like Colorado. We were substantially improved, so the buyer pool had thinned out. We sold it to an affordable housing operator. They will convert our properties into affordable housing.”
Several months ago, Trion Properties paid $35 million for a North Carolina property.