Decron Returns to Los Angeles With $114 Million Miracle Mile Apartment Purchase

Decron Returns to Los Angeles With $114 Million Miracle Mile Apartment Purchase

Los Angeles-based investor Decron Properties has acquired 5550 Wilshire Boulevard, a 163-unit apartment and retail property in the city’s Miracle Mile district, for $114 million — the firm’s first Los Angeles acquisition in nearly two years.

Decron said it picked up the 2010-built asset at what it characterized as a meaningful discount to replacement cost. The deal marks a pivot back to its home market after a stretch in which the company concentrated capital in Sun Belt metros. Its pipeline, according to the firm, now spans Los Angeles, San Jose, Orange County, San Diego and Seattle as well.

“Our growth-market strategy has never been a referendum on Los Angeles,” President and CEO David Nagel said. He noted that for a period, risk-adjusted returns in the region lagged what the firm could find in Sun Belt markets, but described Los Angeles as “one of the nation’s most important and chronically undersupplied housing markets,” where new construction is difficult and costly to deliver.

The property offers one-, two- and three-bedroom apartments and townhomes, with amenities including a pool and spa, resident lounge, private movie theater and rooftop lounges. Ground-floor retail spans 14,686 square feet and is fully leased to tenants including Chipotle, Five Guys and FedEx Office.

JLL, whose real estate services arm brokers transactions like this across commercial property types, represented both Decron and the unnamed seller; Blake Rogers led the assignment. Shares of Jones Lang LaSalle Incorporated were trading at $334.23, up 0.93% from the prior close of $331.14, giving the company a market capitalization of roughly $15.8 billion.

Decron’s broader portfolio includes nearly 10,000 multifamily units and approximately 1 million square feet of retail across California, Washington and Arizona, totaling about 8.7 million square feet.

What to watch

• Whether Decron discloses further Los Angeles-area acquisitions as it redeploys capital toward West Coast markets.
• Any commentary from the firm on future deal volume and its Sun Belt exposure.
• Upcoming earnings from JLL, which may address transaction activity in Western U.S. multifamily markets.

Source: original release