Decron Sells 2 Multifamily Properties in SoCal for $171M

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An investment and development firm is cutting ties with two sprawling communities in a suburban area of Southern California. 

Decron Properties sold the two-property, 399-unit portfolio in Thousand Oaks to FPA Multifamily for $171.3 million. Records show Decron acquired the assets in January 2016 for a combined $126.5 million.

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Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller and announced the deal Thursday.

“Located one mile apart in Ventura County’s best housing submarket, the properties represent 11 percent of the total market-rate housing stock in Thousand Oaks,” IPA’s Kevin Green said in a statement

One of the properties, the Los Robles Apartments, includes 253 units in 32 buildings built in 1972 at 300 Rolling Oaks Drive, and it is currently the second-largest multifamily asset in Thousand Oaks. It features studio, one-, and two-bedroom apartments averaging 882 square feet, as well as a resort-style pool, a fitness center and outdoor lounge areas. Decron acquired the property for $73.5 million.

The Retreat at Thousand Oaks, the second property, comprises 146 units in 28 buildings at 550 Laurie Lane in 1966. It features one- and two-bedroom apartments, three-bedroom townhomes, and also four-bedroom flats, all averaging about 1,260 square feet in size. Decron acquired The Retreat for $53 million.

“In the last 30 years, only 476 units and only two projects with more than 50 units have been delivered in Thousand Oaks,” IPA’s Joseph Grabiec said. “Los Robles Apartments and The Retreat at Thousand Oaks received $19 million in capital improvements over the last eight years.”

IPA’s Green, Grabiec and Gregory Harris represented the seller and procured the buyer. San Francisco-based FPA Multifamily acquired the assets on behalf of its Core Plus Fund V, which has acquired $1.9 billion of assets. 

FPA has owned more than 148,000 apartment units valued at over $23 billion. The investment firm is currently active through its value-add focused FPA Apartment Opportunity Fund VIII, which will acquire approximately $4.6 billion of assets, and its core-plus focused FPA Core Plus Fund VI, which will acquire approximately $2 billion of assets.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.