Trion to launch fund with $100M in buying power

Company is moving from real estate syndication to private equity model

March 14, 2016 11:30 AM

Trion Properties, the Los Angeles-based multi-family investment firm, is moving into the real estate fund business.

The company, headed by Max Sharkansky and Mitch Paskover, plans to raise a $30 million equity fund with $100 million in buying power to invest in multi-family assets in L.A., the Bay Area, San Diego and Portland, CoStar reported.

That means that, rather than raising money through syndication one deal at a time, the firm will be asking investors to trust that it will find them the right deals. It also gives Trion the ability to pull the trigger on a transaction at a moment’s notice.

“Our firm has a deep pipeline of opportunities that we’ve already identified, and the shift to a private equity fund will allow us to take full advantage of these opportunities as they arise, increasing activity in our target markets,” Sharkansky told CoStar.

Trion, whose current portfolio includes 720 units across those four aforementioned markets, says its edge is in its narrow focus on undermanaged multi-family properties.

“Because we’re so focused, we bring a deeper expertise in this product type and geography than our competitors,” Paskover said. “By targeting urban infill projects, we’re limiting the downside and ensuring that our assets can weather economic storms.”

The company recently nabbed the Avalon, a 47-unit building in the heart of Koreatown, for $7.54 million, or $329 per square foot. The seller was Vista Investment Group from Santa Monica.  [CoStar]Katherine Clarke