Trion Properties is planning to invest up to $200m (€167.5m) for its third US value-add and opportunistic multifamily real estate fund.

The Los Angeles-headquartered private equity real estate firm said it has launched the Trion Multifamily Opportunity Fund III fund to target $75m in equity to deliver $175-200m in buying power.

Fund III will primarily invest in the acquisition, improvement, and repositioning of undervalued and opportunistic multifamily assets in Western and Southeastern US markets.

The manager said the fund expects to buy 8-12 properties over its investment period.

Fund III is targeting investor-level annualised returns of 13% to 15% over a 6-8-year period. 

Max Sharkansky, a managing partner at Trion Properties, said the predecessor fund is allocated across value-add and opportunistic multifamily investments within growing submarkets demonstrating strong growth fundamentals.

“With our first two funds, we executed an investment strategy that proved quite resilient, which allowed us to take advantage of several significant opportunities during both incredibly strong and uncertain economic times,” Sharkansky said.

Mitch Paskover, a managing partner at Trion Properties, said: “Trion’s sole focus on our proven strategy of acquiring and repositioning undervalued multifamily assets in key markets, combined with our vertically integrated property management platform, has led to demonstrable success.

“The average investor annualised return on our properties exceeds 30% annually, and all properties purchased with funds I and II have either met or exceeded projections or are on pace to do so. We will continue to implement this strategy on assets acquired with Fund III on an expanded scale.”

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