Los Angeles—Keeping with its strategy of buying apartment communities and giving them a major overhaul, Decron Properties Corp. has acquired the 349-unit Adagio at South Coast in Santa Ana, Calif., with plans for a major renovation. Prime Residential sold the Orange County community to Decron for $96 million.
Decron has been busy in the past 12 months, acquiring 1,190 units in transactions totaling about $334 million. The Los Angeles-based Decron focuses on California markets to invest in and develop multifamily communities, particularly “worn out” properties in thriving suburban markets that are close to job centers. The company then completely renovates the properties, including most recently in Ventura, Los Angeles and San Diego counties.
The company is now executing its strategy in Orange County. “We’ve invested in Orange County before, and we’ve always loved the area,” said David Nagel, president & CEO of Decron. “We’re taking our tried and tested strategy of ‘affordable luxury,’ which is all about giving our renters high quality apartment and lifestyle amenities at a price point they can afford, and replicating it for renters in Orange County.”
Adagio at South Coast fits the bill—the garden-style community was built in 1974. Decron plans to renovate unit interiors with quartz countertops, stainless steel appliances, vinyl plank flooring and in-unit washer and dryers. Common area improvements will include a fully renovated fitness center and clubhouse, fire pits, outdoor lounge areas, resort-style pool amenities, new barbecue areas, playground furnishings, dog parks and added parking.
The community currently offers one- and two-bedroom floor plans, including large townhomes. Units range from 757 square feet for a one-bedroom unit to 1,384 square feet for a two-bedroom townhome. Rents start at $1,600 for a one-bedroom unit, $1,710 for a two-bedroom unit, and $1,762 for a two-bedroom townhome.
Nagel added that the community is well-located with its close proximity to MacArthur Boulevard, which is the home of several companies and tens of thousands of jobs, and South Coast Plaza, California’s largest retail and lifestyle destination. “The community is ripe for a full repositioning, and after our improvement work is complete, we will compete very well against newer product and at a much lower price point than other communities in the submarket,” he said.
Other Decron investments in Orange County have been in Mission Viejo and La Habra, as well as in Huntington Beach, where the company owns a 300,000-square-foot mixed-use retail and office project that is being redeveloped and rebranded as Ocean Plaza.
With this acquisition, Decron now owns and managers 6,700 multifamily units in California, as well as 1.5 million square feet of commercial office and retail space.