Decron Properties continued its rapid expansion into the Phoenix MSA with its acquisition of Broadstone Grand, a 300-unit multifamily community in Tempe Arizona for $106.5 million.
Since entering the market in May of this year, the Los Angeles-based real estate investment company has acquired three properties in Tempe totaling 772 units for $267.4 million, making it the most active acquisition period in the company’s history. Decron’s initial goal was to acquire 1,000 units over 24 months, but the company has revamped its goal to 2,000 units over that time period.
The speed in which the company has been able to establish and increase its footprint in the Phoenix MSA is the direct result of the due diligence that the Decron team spent researching and establishing relationships in the market in 2020 according to Decron CEO David Nagel.
“We spent a lot of time ahead of our first acquisition doing diligence on properties in a very thorough manner and that has allowed us to move quickly and aggressively when opportunities present themselves,” Nagel said. “We’ve also developed relationships and credibility in the Arizona marketplace through our existing relationships in California which has enabled us to unearth these investment opportunities. Further, our lenders have done a phenomenal job of providing us with pricing that has given us an edge in our efforts to acquire all three properties.”
Located at 1003 W Washington St., Broadstone Grand is part of “The Grand at Papago Park Center,” a 60-acre planned community that includes 3.2 million square feet of office, hotel, retail and restaurant space. Hiking and biking paths throughout the property give residents easy access to miles of trails in the nearby Papago Park and Tempe Town Lake. The master planned community will also include a second multifamily property with 250 units.
Built in 2020, the Class-A property is comprised of one-, two- and three-bedroom floor plans. Residences feature granite countertops, nine-foot ceilings, full-size washer/dryers, wood-style flooring, stainless steel appliances, tile backsplash, and modern cabinetry. Select units feature en-suite bathrooms with dual vanities, refrigerated wine racks, and walk-in closets. Community amenities include a resort-style pool area with waterfall feature, an indoor/outdoor pool house, a two-story state-of-the-art fitness center and a covered rooftop deck with lounge area.
Broadstone Grand sits adjacent to the Loop 202 freeway providing residents with immediate access to the region’s major employment centers from Downtown Phoenix and the Central Corridor to Downtown Tempe and Chandler. The property is also situated within walking distance of the Priest Drive/Washington Street and Center Parkway/Washington Street light rail stations. The 28.1-mile light rail system stretches from Mesa in the East Valley through Tempe to Downtown Phoenix and up to North Phoenix, connecting Broadstone Grand residents with employment hubs and entertainment complexes around the metro area.
Nagel said in places like Phoenix, there has been population and job growth, coupled with affordable rents, while states like California have seen a net loss in population over the past few years.
“People are moving to Phoenix because jobs are moving there and because of its more affordable cost of living. With that affordability comes the opportunity to grow rents, which makes this market a very attractive market for us to continue to be active in,” Nagel said.