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focus has been on what’s known in the business as Value-Add investments. A Value-Add strategy in real estate is a bit like the growth equity markets; there is additional risk involved but the upside is greater. The mitigation of those risks is where market and business expertise comes into play – and the importance of Trion’s track record as an owner and operator of multifamily assets. A recent deal that highlights their approach is Art 88 in Fountainbleu, Florida, a Miami-submarket 20 minutes from downtown. Art 88 was purchased in 2022 at a price of $87 million. The 294-unit apartment complex is over 98 percent leased. Located in an area dominated by condo buildings, the property is highly desirable for renters with numerous amenities including two pools and a fitness center. Trion expects to own the property for four years, above the average hold time for their investments. With a project return to its investors of 15.6 percent and a 1.77 multiple on investor equity. With the stock and bond market both in periods of uncertainty, a mid-teens return would be appealing for many investors. “Miami is hot. It’s been going gangbusters particularly since COVID started. But what’s hotter, is investing in multifamily real estate,” Sharkansky states bluntly. “It doesn’t have to be Miami real estate for it to be of interest to the local investor.” Orlando, Florida is another burgeoning real estate market for investors. The demographic trends are a lot like Miami, high population growth and strong job growth, which makes it another great environment for rentals. Patterson Court (rebranding to Perse Apartments) is a 384-unit complex in the heart of the Walt Disney and Universal Studios entertainment and dining district. Trion purchased the property in 2021 for $107 million and expects to hold on to the property till 2025. Rent growth is driven by interior and exterior renovations and boosted by apartment sizes larger than comparable buildings in the area and ample parking. The target project level IRR for the investment is just over 21 percent. Location is a critical component to the success of any real estate investment and Patterson Court is close to Disney, a short drive to downtown Orlando, and an easy commute for 10 of Orlando’s largest employers. Identifying the right markets is key to successfully operating throughout the real estate cycle. Areas like Miami and Orlando with their growth supported by a diverse set of strong economic drivers and favorable supply-demand dynamics are ideal for investors. But choosing not just the right city, but the right property requires more diligence. “Our strategy in value-add investment is to find an asset where we can make improvements that we know will add value and purchase it at a favorable price. These characteristics require proficiency in sourcing off-market deals. Something we happen to be very skilled at,” says Sharkansky. For investors, choosing a sponsor to invest with is a bit like choosing any business partner. You need to know their track record and what differentiates them from their competitors. For Miami-based investors, having a partner like Trion, whose experience spans both local and national markets, means access to building wealth through deals in town, as well as across the county. Trion Properties 201 S. Biscayne Blvd. Suite 700 Miami, FL 33131 phone: (323) 330-6150 email: contact@trionproperties.com Additional information on Trion’s team and investment strategy is available at https://trionproperties.com.