Acquisition is second purchase for Los Angeles-based firm in Phoenix MSA in last six weeks
Decron Properties has made its second acquisition in the Phoenix MSA in the past six weeks with the purchase of 1221 Broadway, a 194-unit Class-A multifamily community in Tempe, AZ for $64.750 million.
Decron made its entry into the Phoenix market in May with its $96.150 million acquisition of Broadstone Rio Salado, a 278-unit multifamily community in Tempe. With the addition of 1221 Broadway, the Los Angeles-based real estate investment company is already more than 50 percent of the way toward its goal of acquiring 1,000 units in the Phoenix MSA in the next 12 to 24 months. With these two acquisitions Decron’s portfolio has increased to 9,000 units.
“Our aggressive approach in acquiring assets in the Phoenix MSA is fueled by our strong belief in the market’s excellent multifamily fundamentals which continue to attract Fortune 500 firms from multiple industries, creating strong job and population growth,” said Decron CEO David Nagel. “With these two acquisitions we have quickly established a significant footprint in the Phoenix market and plan to search out and acquire additional assets that will fortify our position in the market.”
Phoenix has ranked among the top five cities in the nation for job growth since 2017 and it is projected that the market will add 90,000 net new jobs in 2021. The fifth largest city in the United States, Phoenix has seen its population grow to 1.7 million residents, an increase of 20 percent in the last 10 years.
The property is located in North Tempe, within a 10-mile radius of more than 12,000 businesses throughout the Phoenix MSA, which include Intel, Amazon, JPMorgan Chase, Freedom Financial Network, Northrop Grumman, SAP, State Farm Insurance and Bank of America. The Novus Innovation Corridor, a 10 million-square-foot mixed-use development now under construction and located less than two miles from 1221 Broadway, is expected to bring 34,000 new jobs to the market.
Completed in 2015, 1221 Broadway is a low-density garden-style community with a submarket-best average unit size of 940-square feet. The luxury studio, one-, two-, and three- bedroom apartment homes are housed in 10, two- and three-story residential buildings. All units include nine-foot ceilings and are accentuated by contemporary kitchens with stainless steel appliances, granite counter tops and custom cabinetry. Each unit is equipped with a full size washer and dryer, wood-style vinyl flooring, walk-in closets, and a private patio or balcony.
Community amenities include a resort-inspired pool and deck with oversized spa, lounge seating with canopies, and outdoor kitchen area with grilling area. The clubhouse offers a large indoor entertainment area with oversized flat screen televisions, full-service coffee bar, and Wi-Fi Café and the property also offers a state of the art athletic center. Unique amenities include a bike repair shop, putting green and Hub by Amazon parcel lockers.
“The property’s stellar location, combined with the ongoing need for high-quality, multifamily assets to meet the demand of a growing population, made it an ideal opportunity for Decron,” Nagel said.