Decron Buys 216-Unit Multifamily in Phoenix for $91M

Decron Properties has acquired The Wyatt, a 216-unit garden-style apartment community in the Phoenix submarket of Gilbert, AZ, for $91 million. It is the ninth property for Decron in the Phoenix metro overall and seventh in the Southeast Valley. The Los Angeles-based real estate investment firm has acquired over $800 million of real estate in the greater Phoenix market in the last 15 months.

Steve Gebing and Cliff David of Institutional Property Advisors, a division of Marcus & Millichap, represented the seller Thompson Thrift Residential, and procured the buyer, Decron Properties in the transaction. 

“One of the nation’s most prosperous large cities, Gilbert is a top suburban submarket target for multifamily investment in Greater Phoenix,” Gebing said in prepared remarks. “The city attracts an affluent resident base of working professionals with average and median annual household incomes of $128,100 and $99,800, respectively. Population growth has outpaced multifamily supply by a multiple of eight since 2010, creating above average physical occupancy and extremely strong rent growth.”

Completed earlier this year, The Wyatt offers a mix of one-, two-and three-bedroom floor plans averaging 980 square feet. Units feature open-concept floor plans with nine-foot ceilings, stainless steel appliances, granite kitchen island countertops, wood-style vinyl plank flooring and full-sized washer/dryers. The community features condominium-quality interior finishes and community amenities, including a pool and spa, outdoor grilling and gaming area, fitness center, and dog park and washing station.

Decron will work at stabilizing the new property, which at 65 percent occupancy is in the middle of lease-up. Decron expects to be able to stabilize at 95% occupancy in the next four months.

In the past year, Phoenix had the third largest rent growth among the top 10 US markets while experiencing population growth of 1.3%, placing it among the fastest growing metros in the country. With its acquisition of The Wyatt, Decron’s unit count in the Phoenix metropolitan statistical area rises to 2300 and its entire portfolio has increased to approximately 10,000 units.