Decron Properties Enters the Bay Area
Los Angeles, January 12, 2015 – Decron Properties Corp, has acquired Highland Gardens, a 187-unit garden-style apartment community in Mountain View, CA for a total consideration of $86 million.
The acquisition of Highland Gardens marks Decron’s first entry into the Bay Area multifamily market, with another $63 million of assets currently under contract to close by the end of the month. The Los Angeles-based real estate investment and development arm of the Nagel Family Trust owns and manages more than 5,000 multifamily units primarily in Southern California. The firm plans to invest up to $350 million in the San Francisco / San Jose / Bay Area submarket in 2015, according to President and CEO David Nagel.
“This was a rare opportunity to acquire an institutional quality apartment community in one of the highest rent growth areas in the country,” Nagel. “Demand for quality rental housing remains robust throughout the entire Bay Area driven by job growth in the technology sector.”
Highland Gardens, located at 222 and 234 Escuela, is a mix of studio, one, two, and three bedroom apartment homes. The 6.5 acre-complex also includes a resort-style swimming pool, fitness center, recreation areas and covered parking. Built in 1964, a multi-million renovation was completed in 2013 by the seller, a joint venture of San Francisco-based Maximus Real Estate Partners and private equity firm Rockpoint Group LLC.
While unit interiors have been substantially renovated by prior ownership, Decron plans to further upgrade the units to match closer to new apartment construction in the submarket. The renovation plan will improve the common area amenities, including the relocation and expansion of the fitness center, creation of a Wi-Fi Lounge, construction of a new Jacuzzi/spa, and enhanced landscaping with outdoor fire pits. “In completing these upgrades, we will bring a renovated building closer in line to new construction and give our renters more value,” said Nagel.
Stan Jones, Phil Saglimbeni and Sal Saglimbeni of Institutional Property Advisors handled the brokerage assignment.