Decron buys Walnut Creek Multifamily for $63M
Decron Properties has purchased two apartment complexes in Walnut Creek totaling 251 units for $63 million, part of its plan to invest $350 million in the Bay Area this year.
Los Altos-based Interstate Equities Corp. was the seller of the two properties, the 152-unit Creekside Glen complex and the 99-unit Cypress Creek complex. Interstate purchased the two properties, along with the 107-unit Carmel House, for $64.3 million in 2013.
Los Angeles-based Decron said it was attracted to the properties because of their proximity to the Walnut Creek BART station and regional job growth, as well as its lower rents compared to San Francisco. “The rents are so discounted from San Francisco, but it's such a good commute to San Francisco," said Daniel Nagel, vice president of acquisitions at Decron.
Decron plans to invest $16 million to modernize the properties, which were built in the 1960s. It will add laundry and dryer units to apartments and build new lounges and barbecue facilities, said Nagel.
The company seeks to increase rents by 25 percent over three years. Current rents are about $2.50 per square foot, and units average 927 square feet, said Nagel. The two properties are around 95 percent occupied.
Wells Fargo provided financing for the deal. The Jones-Saglimbeni team of Institutional Property Advisors brokered the sale.
Earlier this month, Decron bought the 187-unit apartment property Highland Gardens in Mountain View for $86 million. The company controls retail and office properties, as well as more than 5,000 apartment units, primarily in Southern California.