By D.C. Stribling
The Madison at Town Center, a 130-unit community in Valencia, Calif., has traded for $45.9 million. The buyer was Gemdale USA, a subsidiary of Gemdale Corp., one of China’s largest real estate developers. An affiliate of Los Angeles-based Decron Properties was the seller.
Located north of Los Angeles in the Santa Clarita Valley, the 15-year-old property includes three buildings and is located next to the Westfield Valencia Town Center. Amenities feature a pool, fitness center, clubhouse and bike racks. The property also benefits from its location in Valencia, which was developed as a walkable planned community.
The Madison at Town Center presents new ownership with a value-add opportunity that can be focused on revenue-generating improvements, says Kevin Green, senior managing director at Institutional Property Advisors (IPA), a division of Marcus & Millichap.
Green, along with IPA’s Greg Harris and Joseph Grabiec, represented the seller and procured the buyer.
Grabiec added that the community benefits from the surrounding submarket fundamentals. These include a 54.9 percent increase in population growth over the last 16 years, a vacancy rate of 1.7 percent in 2016, and median household income that’s projected to increase by 13 percent to $106,321 by 2021.