Trellis Equity

Trellis Equity is a San Diego-based multifamily investment firm acquiring distressed core and value-add assets across California and the Sunbelt's most dislocated markets. We partner with a single institutional investor per transaction in direct, single-asset joint ventures. Since 2010, the partners have acquired over $300 million in multifamily assets and realized more than 60 investments, with no realized investment delivering below a 15% IRR across 60+ consecutive executions. Our principals bring more than 30 years of combined experience across acquisitions, asset management, and capital markets. The rapid repricing of interest rates has pushed multifamily values roughly 28% below their 2022 peak. At the same time, a wave of maturing debt is forcing overleveraged Sunbelt operators to sell into a market with few buyers. Loan maturities jump 56% to approximately $162B in 2026 and $168B in 2027. Multifamily distress reached $22.8B in Q3 2025, with CMBS delinquency above 7% and special servicing above 8%. This dislocation is producing motivated sellers and quality assets trading well below replacement cost. Trellis acquires at this deeply reset basis, stabilizes operations, and holds into a collapsing new-supply pipeline. Multifamily starts fell more than 40% between 2023 and 2025, meaning deliveries dry up into 2027 just as today's glut is absorbed, handing pricing power back to owners. This is a basis play. Downside is protected by a cost basis the next cycle cannot easily reproduce, not by aggressive rent-growth assumptions. Two-Part Market Strategy California core anchor. A permanent allocation to supply-constrained coastal California, where strict zoning, limited land, and high replacement costs create long-term rent durability. Coastal submarkets hold vacancy below 5%, well-managed assets can still push 4-5% rent growth, and a structural national shortfall of roughly 4 million homes is most acute here. We focus on Class B and C assets in these high-barrier submarkets, where the best risk-adjusted returns sit. Sunbelt dislocation. Opportunistic acquisitions in Arizona, Texas, and Nevada, where the selloff is deepest. Austin rents run roughly 20-22% below peak and Phoenix landlords are offering up to 3.5 months free, producing motivated, price-sensitive sellers. We buy the distress now and own into the supply cliff. How We Create Value Our approach rests on three pillars: Buy below replacement cost in supply-constrained markets. Basis is the first and best form of downside protection. Execute a business plan that forces asset appreciation. Hands-on repositioning, operational improvements, and direct oversight of best-in-class property managers grow NOI regardless of market rent trends. Protect downside first on every deal. Conservative leverage, funded reserves, and clear downside analysis before any capital is committed. Many distressed sellers are untested operators. Our edge is operating through the trough with discipline while sourcing through deep broker, lender, and special-servicer relationships across California, Arizona, Texas, and Nevada, giving us first look at off-market distress before it is broadly marketed. Sourcing Advantage Before founding Trellis, our founder built Nara Advisors, a commercial real estate brokerage scaled from zero to 42 employees across 5 cities in 4 years, closing over $1B in transaction volume. That platform produced direct access to off-market deal flow, deep broker relationships, and transaction-level pattern recognition across hundreds of multifamily trades. It now drives Trellis's sourcing and underwriting discipline. Structure and Alignment Each opportunity is a single-asset joint venture. Our partner provides the majority of the equity while we source, underwrite, execute, and asset-manage the investment end to end. We co-invest 3-10% of the equity in every deal, alongside our partners. Our promote is earned only after our partner's capital and preferred return are paid. Each venture is structured around the partner's mandate, objectives, and tax position, including depreciation and 1031 flexibility. Institutional reporting: quarterly financials, asset-level detail, and direct access to the principals, provided proactively.

Two strategies: 1. We acquire value-add multifamily assets in class A-B locations and force appreciation through our business plan. 2. We acquire new construction assets from distressed sellers who cannot refinance and are forced sellers.