February 4, 2019 – Trion Properties, a private equity real estate firm that specializes in multifamily investments along the west coast, with joint venture partner Ketter Construction, has announced an upcoming 45-unit luxury multifamily development in the Mid-Wilshire neighborhood of Los Angeles, California.
The firm recently acquired a fully permitted and entitled 26,865 square-foot development site for the project and plans to break ground in February, according to Max Sharkansky, Managing Partner at Trion Properties.
“As interest rates and capitalization rates rise, we continue to be bullish on strong locations that are not only profitable in an upmarket, but will remain resilient for the long term, even in a downturn,” explains Sharkansky. “Leveraging our deep connections within the Los Angeles multifamily industry, we were able to secure this rare opportunity to acquire a land parcel in a supply-constrained, high-growth area, with entitlements and permits for multifamily development in place.”
The Mid-Wilshire neighborhood presents a high quality of life and central Los Angeles location surrounded by highly affluent submarkets including Beverly Hills, Century City, and Miracle Mile, and is in close proximity to a variety of other attractions and employment, notes Sharkansky.
“Drawing on more than a dozen years of experience acquiring, renovating, and managing multifamily properties in Los Angeles, we recognized the potential to develop a community that would give residents the chance to live in spacious, fully amenitized units at relatively low prices compared to surrounding neighborhoods,” continues Sharkansky. “Residents will also benefit from extremely accessible transportation. The site is located one mile south of the highly anticipated Wilshire/Fairfax Metro station, scheduled to open in 2023 as part of the Purple Line Subway Extension Project, which will connect residents to major markets from Downtown Los Angeles to the East and Westwood to the West.”
The site is also one mile away from the Interstate 10 freeway and a quarter mile away from three major thoroughfares: Fairfax Avenue, Crescent Heights Boulevard, and Pico Boulevard.
“This development brings highly in-demand housing to the Central Los Angeles submarket, which will allow more residents to enjoy this vibrant area and convenient access throughout L.A.,” Sharkansky confirms. “Additionally, 10 percent of the units will be designated affordable housing. We look forward to contributing to this growing and thriving community.”
According to Sharkansky, upon completion of the development, Trion Properties will lease up, stabilize, and operate the property enacting its proven vertically-integrated property management platform.
This is Trion’s second development to be completed in partnership with Ketter Construction. The joint venture partnership broke ground on another multifamily development, located at 5012-5016 South Slauson Avenue, in 2016. The apartment community, Fifty Twelve, will be open for occupancy in May and will begin preleasing in March.
“We are incredibly fortunate to benefit from Ketter Construction’s deep experience in local Los Angeles development,” says Sharkansky. “We have a strong, synergistic partnership that we look forward to continuing through the construction of this project and beyond.”
The multifamily community will be located at 1556-1564 Hi Point Street in Los Angeles, California. The development site, located at on the corner of Hi Point Street and Pickford Street, was acquired for $8.63 million.
Continental Partners arranged a $15 million construction loan for the project. Richard De La Rosa of KW Commercial Studio City and Christopher Choe of Premier Agent Network represented Trion Properties and Ketter Construction.