Decron Properties has acquired Margo at The Society, a 240-unit, luxury multifamily community located just off Hotel Circle in San Diego, California for $125.5 million.
The acquisition was fueled through a 1031 exchange with Decron selling two properties in Thousand Oaks, California, Los Robles Apartments for $102.5 million and Retreat at Thousand Oaks for $69 million and reinvesting a portion of those funds into Margo at the Society. Decron continues to seek other trades to complete the Thousand Oaks exchange and in addition, Decron has several other dispositions scheduled to close in the next few weeks. It is all part of Decron’s ongoing strategy to make its portfolio younger and geographically more diverse while reducing the firm’s exposure to assets that are restricted by city or statewide rent control.
Legislation changes continue to concern Decron with its older California assets and purchasing new properties in California or out of state is a way to reduce its exposure from new legislative ballot measures, such as the No Justice for Renter Act that would repeal landlord protections currently available under Costa Hawkins.
Margo at The Society is part of a mixed-use development that includes four multifamily communities, surrounded by a variety of hotel, retail, restaurant, and entertainment options, all within walking distance of the property including the 1.7 million-square-foot Fashion Valley Shopping Center. Margo is also a five-minute walk to the Fashion Valley Trolley Station and Transit Center which provides intermodal commuter access throughout San Diego, including Downtown La Jolla and San Diego State University and University of California San Diego.
Opened in 2022, Margo at the Society is comprised of one-, two- and three-bedroom floor plans. Residences feature quartz countertops, stainless steel appliances, designer backsplash, soft close cabinets and drawers, keyless entry, and Nest thermostat systems. Community amenities include a resort-style pool area, a state-of-the-art fitness center and common area lounges and meeting rooms. The property sits adjacent to the 8 freeway in Mission Valley, in one of the most coveted submarkets in San Diego.
With just seven existing class-A communities in the area, the demand for upscale housing in this submarket has exceeded the available supply, with approximately 1,562 units of new construction absorbed since 2021.
“Unlike most markets in California, San Diego continues to experience remarkable growth, powered by a surging presence from the tech, healthcare and biotech industries establishing a growing presence in the area,” said David Nagel, Decron’s Chief Executive Officer. “The property’s stellar location, combined with the ongoing need for high-quality, multifamily assets to meet the demand of a growing population, made this an ideal opportunity for Decron.”
This is Decron’s second acquisition in the San Diego market but its first since 2015 when they acquired The Avenue at Carlsbad, a 450-unit apartment complex in Carlsbad, California, for $112 million. The Los Angeles-based real estate investment, development and management firm is looking to acquire 500 – 1,000 additional units in San Diego County over the course of the next 24 months.
