Decron, Sequoia Trade CA Assets in $193M Transaction

Sequoia traded The Villas and Overlook, located in the 4,000-acre master-planned community of Wood Ranch, for Decron's Broadstone at Strawberry Creek. Institutional Property Advisors represented both companies.
Broadstone at Strawberry Creek

Broadstone at Strawberry Creek

Decron Properties traded a multifamily property in Sacramento, Calif., and cash to Sequoia, in a direct exchange for a two-property portfolio in Simi Valley, Calif., in a transaction valued at $193 million. 

The company sold Sequoia the 264-unit Broadstone at Strawberry Creek, located at 8282 Calvine Road. The community offers one-, two- and three-bedroom floorplans ranging from 746 to 1,367 square feet across its 13 two- and three-story buildings. Standard apartment features include fully equipped kitchens, washers and dryers, nine-foot ceilings, private garages and covered parking and electric fireplaces in select units. Upgrades consist of stainless steel appliances, plush carpeting and faux-hardwood flooring, elegant light fixtures, USB outlets and brushed nickel hardware, while luxury units offer the addition of white, shaker-panel cabinetry, quartz countertops and lake views. Residents have access to amenities such as a 24-hour fitness center, business center, clubhouse, playground, a pool deck with a spa and a dog park. Broadstone was Decron’s first investment in Northern California when they acquired the property in June 2012.  

“This was an excellent investment that performed very well for us over the five-year hold period,” said Daniel Nagel, vice president of Acquisitions & Finance for Decron. “While Sacramento continues to boast sound market fundamentals for multifamily investment, we were operating inefficiently because we only had one asset in the submarket. The equity from the sale of Broadstone is being deployed to meet our current strategic focus in more core California markets adjacent to major employment centers which includes first ring submarkets around Los Angeles, Orange County, San Diego, Silicon Valley and East Bay (Contra Costa and Alameda County) where we believe sustained rent growth can be achieved over time.”

The Villas at Wood Ranch

The Villas at Wood Ranch

Decron acquired the 372-unit The Villas and the 132-unit Overlook, located at 241 Country Club Drive. The two communities are located within one-half-mile of each other in the 4,000-acre master planned community of Wood Ranch. Both offer one- and two-bedroom floorplans ranging from 684 to 924 square feet across 31 buildings. Interior features include washers and dryers and private balconies and patios, with recent renovations consisting of oversized bay windows, energy-efficient gourmet kitchens with abundant counter space and stone countertops, vaulted ceilings, wood-grain flooring and two-toned designer paint with crown molding. Residents have access to amenities such as a fitness center, tennis courts, on-site laundry facilities, complimentary Wi-Fi in common areas, barbecue grills, playgrounds, swimming pools, spas, a 15-acre putting green and a low-density 8-acre sports court.  

“In exchanging from Sacramento to Simi Valley, we were able to recycle trapped equity from a market where we had no other assets and limited operational efficiencies to a market where we own four other communities, totaling 1200 units, and where we’ve already renovated 900 units and seen success in achieving our post renovated rents,” Nagel told Multi-Housing News. 

Stan Jones, Philip Saglimbeni and Salvatore Saglimbeni of Institutional Property Advisors’ Palo Alto office, along with Gregory Harris, Kevin Green and Joseph Grabiec in the firm’s South Bay/Encino office represented both Decron and Sequoia in the transaction.

Images courtesy of Broadstone at Strawberry Creek & The Villas at Wood Ranch