Firm expects to close another property in Phoenix at the end of the month
Los Angeles-based real estate firm Decron Properties has announced its acquisition of Ascent, a multifamily community in Phoenix, for $107.5 million. Ascent is the first of the two acquisitions Decron expects to close in the next 30 days for a total of $235.5 million.
Decron will undertake a two-phase capital improvement program, according to its release. In the first phase, the firm will focus on repairing and upgrading the common areas and amenities of the property, which was built in 2007. After that, Decron will proceed with the second phase and start renovating all units (including installation of updated cabinetry, countertops, and appliances) to make it more “competitive” in the market.
“We are taking a systematic approach with our renovation strategy that will provide us with sustained growth,” said Decron CEO David Nagel. “We’re confident the market’s strong fundamentals will provide long-term viability for our properties and our ability to meet or surpass our investment goals.”
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Decron’s portfolio includes roughly 9,400 apartment units and one million square feet of office and retail centers throughout California, Washington, and Arizona. The firm has built a multifamily portfolio in Phoenix, which will total 2,100 units with the completion of the second property at the end of April.
According to Decron, the influx of new residents in the Phoenix area has led to the pent-up demand for living space, creating as much as 20% in rent premiums as units turn. Nagel said that Decron’s diverse portfolio of assets gives renters different options depending on their specific location preference and budget.
“After acquiring approximately $600 million of assets in Phoenix in 2021 over the course of just eight months, Decron believes these early acquisitions can provide momentum toward even greater investment activity in 2022,” the firm said in a statement.
