CHINO HILLS, CA—As part of its investment strategy, Decron Properties Corp. is targeting multifamily properties in infill suburban markets that appeal to young families, rather than the millennial generation. In an earlier story, GlobeSt.com reported that the multifamily investor purchased Village Crossing, a 440-unit apartment building in Chino Hills, for $82.2 million. Decron plans to invest an additional $9 million to target young families who cannot afford to buy a home but are in need of quality housing near employment centers and schools.
“Our target submarkets are infill suburban areas adjacent to large employment centers, which are supported by strong school districts and attract young families,” Daniel Nagel, VP of acquisitions and finance for Decron Properties, tells GlobeSt.com. “In Southern California, these markets tend to have high barriers to entry, which shield the existing housing stock from rapid increases. The confluence of these metrics creates the demand for luxury apartments but at a price point renters can afford.”
Decron’s $9 million upgrade will add amenities and finishes to offer potential tenants “affordable luxury.” “Many renters are priced out of the urban core but still earn enough to want the modern amenities offered by class-A communities,” Nagel adds. “These renters are also priced out of the single-family home market because the cost of housing is so high.” The renovated Village Crossing will target young families with annual household incomes of $50,000 to $65,000 annually.
“Our brand of affordable luxury focuses on delivering to our residents the bells and whistles expected at new class-A apartment communities,” Nagel says. “All of this is delivered at an affordable price, often 40% less than a comparable project in a more urban location.”