The Monterra Apartments in Albuquerque, NM
El Segundo-based TriWest Development and its subsidiary TriWest Multifamily have had a busy year that has moved away from their original focus.
Tri-West Development was founded in 2014 by Blake Overend, Bryce Overend and Omer Ivanir to build luxury single family homes. To date, more than 150 houses have been built.
Bryce Overend said he saw increased demand for newly built single-family homes for sale in 2014.
“There was a lot of demand and a real lack of supply,” he said.
Ivanir said it made a lot of sense to create these homes in Los Angeles.
“LA is the largest market for this business model in the US. It’s a big city that can bear high prices per foot, ”said Ivanir.
He added that Los Angeles doesn’t have as many new developments as some other areas, which makes it an attractive market.
Overend said the South Bay, Santa Monica, Brentwood, Bel Air and Beverly Hills markets are some of the company’s most active.
But business has started to develop.
The company recently started buying apartments in addition to building houses. And many of these acquisitions were made outside of the company’s home base in LA.
“Our goal has always been to expand this portfolio in both Los Angeles, California and relocate it out of the state,” said Overend. “2020 was a catalyst for a conversation that we have had for many years.”
The company’s most recently announced acquisition was the 312-unit Monterra Apartments in Albuquerque, NM, located at 4217 Louisiana Blvd. are located. TriWest bought the asset from Vukota Capital Management.
It is the third acquisition by TriWest in Albuquerque, where the 77-unit ABQ Elevate Apartments were also acquired in June and the 118-unit Ambassador East Apartments in August.
The company holds an additional 317 units in trust in the city. And while it still owns some Southern California real estate, it also operates in Texas, Georgia, and Florida, and has even opened an office in the southeast.
The company now has 1,156 apartment buildings and 1,321 more on trust in the United States.
Overend said it was difficult to grow in LA because there are so many small apartment buildings here and because of newer state and local guidelines.
“The basics make more sense in our surrounding states than here, mostly because of public order,” he said.
“It’s no secret that both Covid and the effects of the pandemic and the general legal environment in California have made real estate investments difficult,” Ivanir said. “Our portfolio in Los Angeles suffered more than (in other areas).”
Ivanir said the company sold some of its local real estate and used the proceeds to buy it outside of the state.
Looking ahead, Overend said the company will develop single-family homes in LA while purchasing multi-family homes elsewhere. He expects the company to grow to 6,000 units in the next 24 months and have 8,000-10,000 units within the next 36 months.
“We believe we are one of the biggest home buyers in the country,” he said, adding that the company plans to invest in properties that offer a discount to replacement costs and are in high-growth markets with strong employment factors .
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