Decron Properties has acquired a property with 163 residential units in the Miracle Mile district of Los Angeles for $114 million. This marks the company's first transaction in Los Angeles in almost two years. The Los Angeles-based investment firm secured the property, developed in 2010 at 5550 Wilshire Boulevard, which comprises both residential and retail space, at a price Decron described as a significant discount to replacement cost.
After a period during which the company focused on markets in the so-called "Sun Belt" region, Decron states it continues to pursue opportunities in Los Angeles, San Jose, Orange County, San Diego, and Seattle.
Strategic Reorientation
David Nagel, President and CEO of Decron, stated that the company's growth market strategy was never a repudiation of Los Angeles. He noted that, for a certain period, risk-adjusted returns in Los Angeles simply could not compete with those the company found in Sun Belt markets. Nagel emphasised that Los Angeles remains one of the nation's most significant and chronically underserved housing markets, where new housing is difficult and costly to realise.
The property at 5550 Wilshire offers one-, two-, and three-bedroom apartments, as well as townhouses. It boasts a range of amenities including a pool, a spa, a residents' lounge, a private cinema, and rooftop lounges.
Additionally, the property includes 14,686 square feet of ground-floor retail space, which is fully leased to tenants such as Chipotle, Five Guys, and FedEx Office. Blake Rogers of JLL represented both Decron and the seller in this transaction.
Decron Properties' Portfolio
Decron owns and manages almost 10,000 multi-family residential units and approximately 1 million square feet of retail space across California, Washington, and Arizona. The company's total portfolio covers an area of around 8.7 million square feet.
