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Decron Properties Acquires 397-Units For $70 Million In Value-Added Mulutifamily Deal In Simi Valley

Oct 2, 2012

VENTURA COUNTY, CALIF. – October 2012 – Decron Properties Corp., a diversified real estate investment, development, and management firm based in Southern California, has acquired Creekside Apartments located at 1518 Patricia Avenue in Simi Valley, Calif. for $70,000,000. The property is a 397-unit garden style, multifamily residential apartment community covering 16 acres of land. Decron intends to carryout substantial renovations to the common areas as well as unit upgrades that will enable the property to appreciate significantly in value overtime.

“Creekside offers a tremendous value-add opportunity for our investors,” said David J. Nagel, President and CEO of Decron Properties. “Rents are on the rise in the area, and, with our planned upgrades, we see a very conservative risk profile here given that we’re really just going after what the market is already getting.”

Decron plans to invest $9 million in the property and execute an upgrade program that includes new cabinets and countertops, new appliances and flooring, and the installation of washers and dryers in every unit. The developer will also redesign the landscaping, clubhouse, fitness center, swimming pool decks, and the front entryway.

Decron projects that the repositioning of the property will result in a cap rate to cost of better than 7% at the completion of its renovation program.

Developed in 1985, Creekside Apartments features 40 three bedroom/two bathroom units, 190 two bedroom/two bedroom units, 80 two bedroom/one bathroom units and 87 one bedroom/one bathroom, with current rents ranging from to $1050-$1895. Apartments feature gas ranges and stoves, dishwashers, and garbage disposals, ceiling fans, and central air conditioning and heating. All units have their own private patio or balcony. Community amenities include two pools, a fitness center, and clubhouse. Creekside Apartments is conveniently located nearby to several retail and entertainment venues including Simi Valley Town Center, Mountain Gate Plaza, and El Paseo Simi.

Marc Renard of Cushman & Wakefield represented the seller. Decron represented itself in the transaction.

The acquisition of Creekside marks another major milestone for Decron Properties. Over the past 24 months, Decron has acquired 2,200 residential units, signaling its position as one of the most active privately-held buyers in California’s multifamily marketplace.

Decron Properties Corp. currently owns and manages over 4,700 residential units with another 460 in development. It also maintains and operates a sizeable portfolio of 3 million square feet of commercial office and retail space located throughout California. Despite its considerable commercial holdings, Decron has specifically focused its recent growth on its multifamily platform including apartments and broken condos. It has the ability to pay all-cash and close in less than 30 days.

As the real estate investment and development arm of the Nagel Family Trust, Decron has been an active owner and investor in California real estate for over 55 years. With assets in excess of $1.5 billion, the current portfolio includes retail centers, office buildings, multifamily apartment buildings, and marinas. Decron owns and operates over 7 million square feet of commercial and residential real estate in 55 different projects and communities.