By Meghan Hall
Los Angeles-based Decron Properties is continuing its expansion into the Puget Sound region with the acquisition of another multifamily property in Kent, Wash. In a transaction that closed on September 11th, Decron purchased the Indigo Springs Apartments for $78.8 million from Beverley Hills, Calif.-based Kennedy Wilson. The three-story, 302-unit complex sold for just under $261,000 per unit.
Located at 11101 SE 208th St., the complex features a mix of one-, two- and three-bedroom apartments that range from about $1,336 to $1,910 per month, according to Decron’s website. The property is located 20 miles from central Seattle and attractions such as MoPOP and the Seattle Art Museum. Neighborhood shopping centers anchored by retailers such as Safeway, Starbucks and Firestarter Bar and Grill and Dollar Tree are also nearby.
The units themselves feature glass-style backsplashes, balconies and patio and upscale flooring. Community amenities include a pool and spa, basketball court, new clubhouse and fitness center. Pets are also welcome in the community.
The transaction comes almost a year after Decron Properties entered the Seattle market with the acquisition of Avana 522 in November of 2018. In what marked one of the largest multifamily transactions of the year, Decron acquired the 558-unit property for $173 million, or about $310,000 per unit. The 56-acre community was originally constructed in 1988, and then was expanded in 1999. Like Indigo Springs, the apartment complex features a mix of one, two- and three-bedroom units and numerous amenities such as tennis courts, an indoor movie theater and a barbecue area.
In a statement at the end of 2018, the company indicated in a release that it has plans to invest about $400 million in the Seattle market over the course of the next three years.
“Seattle and its submarkets are a significant job creator market that benefits from a cluster of major employers with long-term growth prospects,” said Decron’s Chief Financial Officer Daniel Nagel at the time of the transaction. “In addition, our concerns about the current regulatory environment in California heightened our focus on investing outside of our home state. Avana is the result of several years of due diligence by our investment team to understand the nuances of the market.”
Currently, Decron owns close to 7,500 apartment units in California and is one of the largest privately-owned real estate firms in the state. At the end of 2017, Decron posted revenues of $190 million. In its investments, Decron focuses on opportunities that are supported by job creation, supply and demand imbalance and strong public schools — all of which are found not just in Kent, but throughout the greater Puget Sound.