Decron Properties has acquired Ascent at Papago Park, a 270-unit garden style multifamily asset in Phoenix, Arizona. It is the first of two acquisitions that the Los Angeles-based real estate investment firm will close in the next 30 days for a total of $235.5 million.
Located at 4950 E Van Buren St. just north of Tempe, Ascent at Papago Park offers a mix of one-, two- and three-bedroom floor plans spread across 14 two- story residential buildings.
Decron will undertake a two-phase capital improvement program. In the first phase, the firm will focus its attention on upgrading the common areas and amenities to provide residents with Class-A living environment. They will also make any needed repairs or upgrades to the property’s infrastructure, which was built in 2007. In the second phase of the plan, Decron will initiate an extensive renovation of all units including installation of updated cabinetry, countertops, and appliances, making Ascent at Papago Park competitive with newer and more expensive inventory 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.”
Since May 2021, Decron has built a sizeable multifamily portfolio in Phoenix, which will total nearly 2,100 units with the closing of the second property at the end of April. Both properties are mid-2000 vintage and are located in submarkets where occupancy rates are averaging anywhere from 97 to 99 percent. The continued influx of new residents into the Phoenix MSA, has led to the pent up demand for living space creating as much as 20 percent in rent premiums as units turn.
Decron will leverage its market knowledge to operate as efficiently as possible. Having a large portfolio of assets creates economies of scale and the ability to appeal to a larger pool of renters. This diversity of assets allows renters different options depending on their specific location preference and budget, according to Nagel.
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.