CHINO HILLS, CA — Decron Properties Corp. has purchased Village Crossing, a 440-unit apartment complex in Chino Hills, CA, from Invesco Real Estate for $82.2 million. The investor plans to spend an additional $9.2 million upgrading and renovating the property from a class-B to a class-A complex, making the total investment cost approximately $91.4 million.
Village Crossing is the perfect fit for the company’s investment strategy of purchasing value-add multifamily in infill suburban markets. “Since the start of the Great Recession, we’ve found that value-add multifamilyprojects offered the most attractive risk adjusted returns,” Daniel Nagel, VP of acquisitions and finance at Decron Properties Group, tells GlobeSt.com. “There is limited entitlement risk and the properties can be purchased and renovated at an all-in cost basis significantly less than new construction. This allows us to offer luxury apartment units at an affordable price point.” He adds that Village Crossing was attractive because of its close proximity to “the 71 freeway, which gives renters easy access to Orange County, San Bernardino County and L.A. County employers and is located within the Chino Hills school district, which is home to some of the best schools in Southern California.”
At $21,000 per unit, the class-A renovations include newly renovated kitchens with granite countertops and stainless steel appliances, wood-like vinyl plank flooring and in-unit washers and dryers. The building will offer a wide range of amenities, including three pool areas, fire pits and BBQ grills, plus a two story-club house with a 1,500-square-foot fitness center.
Decron is renovating the property to target young families with household incomes of $50,000 to $65,000, who are looking for quality living at an affordable price. “The property’s 1980’s vintage makes it a ripe candidate for a renovation,” says Nagel. “Post renovation, we will offer units and common area amenities that are “as-nice”, if not nicer than new projects, and at a lower price point. We believe there is strong demand for this style of affordable luxury in Chino Hills.” After renovations are complete, the property will generate rents between $1,350 and $1,750 a month.
The Chino Hills submarket is garnering investor attention in the retail sector as well. Earlier this year, GlobeSt.com reported that the Shoppes at Chino Hills, a trophy retail asset, came to market and generated ample interest. The seller, a private investment group, said it expects to sell the asset for $150 million.
http://www.globest.com/news/12_919/losangeles/acquisitions_dispositions/Decron-Spends-822M-on-Apartment-Complex-349161.html