(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
SACRAMENTO-Decron Properties Corp., a Los Angeles-based diversified real estate investment company and real estate investment and development arm of the Nagel Family Trust, has made its first investment in the area by acquiring Broadstone at Strawberry Creek, a 264-unit multifamily apartment community. The deal closed in under 40 days.
Developed in 2005, Broadstone at Strawberry Creek is located in a low-density, well-appointed community at the north end of the fast-growing Sacramento submarket of Elk Grove. It offers residents a state-of-the-art fitness center, business center with conference room, swimming pool with Wi-Fi, and picnic areas with barbecue grills.
Broadstone at Strawberry Creek features 76 one-bedroom/one-bathroom units, 168 two-bedroom/two-bathroom units and 20 three-bedroom/two-bathroom units. Unit interiors average 1,032 square feet.
Stanford Jones and Philip Saglimbeni of Institutional Property Advisors, a division of Marcus & Millichap, represented the seller. Ken Blomsterberg of Marcus & Millichap also worked with IPA to provide representation. IPA tells GlobeSt.com that it cannot provide further comments at this time.
Saglimbeni explains that “Over the past 18 months, we have seen measurable improvements in the Sacramento MSA apartment market. Broadstone at Strawberry Creek is well positioned for future NOI growth and investor demand for assets in the area continues to strengthen.”
Decron represented itself in the transaction. And while Decron also could not provide further information, a source not involved in the deal put the sales price at around $34.2 million and tells GlobeSt.com that the seller was Archon Group.
Decron Properties currently owns and manages more than 4,500 residential units with another 500 in development. It also maintains and operates a sizeable portfolio of 3.5 million square feet of commercial office and retail space located throughout California.
Recently, the firm has specifically focused its recent growth on its multifamily platform including apartments, broken condos and note acquisitions. Over the past 21 months, the development company has secured $120 million in financing and acquired 1,800 residential units.
According to David Nagel, president of the firm, the company is seeking infill deals in “large employment areas” throughout the Pacific Northwest and California. “The Sacramento market offers the high-quality product that meets these investment criteria,” he says in a prepared statement. “With a positive rental growth forecast, we see Sacramento as the next frontier in our multifamily portfolio.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
