Decron Expands Multifamily Presence in CA with $126M Deal
Thousand Oaks, Calif.—Decron Properties Corp. has acquired a 391-unit multifamily apartment portfolio in Thousand Oaks, Calif., from Prometheus Real Estate Group for $126.5 million.
The acquisition includes the 249-unit Los Robles Apartments and the 142-unit Marlow Apartments located approximately one mile from each other.
“This portfolio acquisition represents our eighth acquisition, totaling 2,300 units, in our acq-rehab program that we started in 2012,” David Nagel, Decron’s vice president of acquisitions at the company, told MHN. “Our investment strategy focuses on aged housing inventory located in suburban submarkets that are within the first ring of major employment centers, offer above average public education and have high barriers to entry which creates a supply demand imbalance.”
Thousand Oaks fits these three criteria perfectly. It has proximity to major employers such as Amgen, Baxter International Inc., and the 101 Tech Corridor, highly rated schools with average API over 870, and extreme barriers to entry with fewer than five multifamily buildings built in the last 25 years.
The properties proximity to jobs, exceptional schools, and major retailers makes it very appealing.
“These properties, built in the 1960s and 1970s, are located in a Thousand Oaks, adjacent to Moorpark Avenue, the major retail corridor, and near the 101 freeway,” Nagel said. “Both properties have had nominal renovations completed in the past and are ripe for a full repositioning.”
The Los Robles apartments were built in 1972 and the amenities and common areas are in need of substantial improvements. Currently Los Robles does not have gym or a functional common area lounge for its residents and it operates its leasing office from a two-bedroom unit.
“To better compete with the renovated communities within the submarket, the business plan at Los Robles calls for a new outdoor lounge with fire pit, a new two-story leasing office and amenity building with clubhouse and gym, pool enhancements, signage upgrades, and a new dog park,” Nagel said.
The Marlowe was built in 1966 and received several common area upgrades over the past five years, including a new clubhouse in the main leasing office building.
“The Marlowe will receive signage upgrades, landscape upgrades, a new game room adjacent to the second pool, new exterior paint, a new dog park, a new package room, and new outdoor kitchens and barbeques at both pools,” Nagel said. “Our intent is to renovate the unit interiors with brand new luxury finishes including new cabinets, quartz countertops, kitchen backsplashes, vinyl wood plank flooring, and recessed lighting.”
Over the past year, the firm has acquired more than 1,300 units in transactions totaling $400 million in the state of California. With the completion of this acquisition, Decron now owns and manages approximately 6,500 multifamily units, as well as 1.5 million square feet of commercial office and retail shopping centers, in 55 projects, across California and Nevada.