- The Marlow Apartments has 142 units.
LOS ANGELES—Decron Properties has acquired a two-property, 391-unit multifamily portfolio in Thousand Oaks for $126.5 million from Prometheus Real Estate Group. The investor plans to spend an additional $15 million in capital improvements on the property with a five to 10 year hold period. This acquisition reaffirms Decron's commitment to buying well-located value-add properties in supply-constrained markets.
“These two properties in Thousand Oaks are very much located in what we would call a vibrant suburban location,” David Nagel, president and CEO of Decron Properties, tells GlobeSt.com. “They are vibrant in the fact that this is a job center market with many high-paying jobs, and because there are close by retail amenities. People who live in this community can walk to restaurants and retail, and that is unusual in a suburban market. We feel that the people who live in these communities have the benefit of an urban feel and the benefit of strong school locations. This Thousand Oaks portfolio is very much an acquisition that we are excited about.”
In addition to the A+ location, Thousand Oaks is also a supply-constrained market with nearly no development. According to Nagel, the market has seen between 300 and 400 units developed over the past 20 years. “That is so unusual,” he says. “To be able to have an opportunity to buy 300 units in one shot is very unique and made the competition for the purchase quite fierce.” Decron purchased the portfolio in a fully marketed transaction by Institutional Property Advisors, which had strong competition from other investors.
The portfolio includes the 249-unit Los Robles Apartments and the 142-unit Marlow Apartments, both located on Moorpark Road. Both properties have amenities packages with swimming pools, clubhouses, and fitness centers, but Decron intends to amp up the amenities on both sites as well has perform significant interior renovations to the units, including washer-dryer upgrades, vinyl plank flooring, new kitchen and bathroom cabinetry, stainless steel appliances, quartz countertops and tile backsplash in the kitchen.
These upgrades will help them to drive rents, and according to Nagel, the firm has a great opportunity for rent growth in this market. “The long-range opportunity for rent growth is potentially longer in these vibrant suburban markets than in the infill location that are higher in price,” he says. “Because of the higher pricing, we are starting to see a cap on rent growth. I think that we are concerned about a ceiling in how much a renter can afford to pay in rent. In the suburban markets, where rent growth has not been as high for as long of a period of time, we feel those are a bit more affordable and gives us the opportunity for rent growth and higher rent growth for a more sustained period of time.”
Decron Properties has acquired 1,300 units totaling $400 million in the past 12 months, and owns a total of 1,200 units in Ventura County, Simi Valley, Moorpark and Thousand Oaks.
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Kelsi Maree Borland
