FPA Multifamily has acquired a two-property luxury portfolio in Thousand Oaks, Calif., on behalf of its Core Plus Fund V. Decron Properties sold the 253-unit Los Robles Apartments and the 146-unit Retreat at Thousand Oaks for $171.3 million, after having purchased them for $126.5 million in 2016. Institutional Property Advisors represented the seller and procured the buyer.
FPA also assumed the outstanding balance of two CMBS loans totaling $5.6 million, according to Yardi Matrix data. Citibank provided the notes that were originated by Wells Fargo Bank and have a maturity date set in October 2029.
The IPA team that brokered the transaction comprised Executive Managing Directors Kevin Green and Gregory Harris, along with Executive Director Joseph Grabiec. Earlier this year, the trio arranged the $107 million sale of a 280-unit community in Chatsworth, Calif.
Adding value to older apartment properties
Over the last eight years, Decron has implemented a $19 million capex plan to upgrade the two assets to luxury communities. The properties represent 11 percent of the total market-rate housing inventory in Thousand Oaks, said Green in prepared remarks.
READ ALSO: Focus on Value-Add Renovations for Big Gains
Dating back to 1972, Los Robles Apartments—now dubbed Arrive Rolling Oaks—encompasses 32 buildings spread across 11.7 acres. Units are available in studio, one- and two-bedroom layouts ranging between 628 and 962 square feet. Apartments feature washers, dryers, stainless steel appliances and private balconies or patios. Common-area amenities include a clubhouse, a fitness center, a swimming pool, outdoor lounge areas and a playground.
Located at 300 Rolling Oaks, the property is close to several dining and retail options. The Oaks shopping mall is 1.4 miles away, while North Ranch Gateway retail center is within 6 miles.
The 1966-completed The Retreat at Thousand Oaks—now rebranded as Arrive at the Retreat—consists of 28 buildings spread across 8.9 acres. The unit mix features one- to four-bedroom layouts varying from 850 to 1,600 square feet. Select units feature walk-in closets and full-sized washers and dryers. Community amenities comprise a fitness center, a clubhouse, a media room, two swimming pools, a recreation room, a playground and a spa.
Located at 550 Laurie Lane, Arrive at the Retreat is 1.4 miles from the other community. Downtown Los Angeles is roughly 43 miles southeast, while Los Angeles International Airport is 44 miles away.
Los Angeles’ multifamily market faces headwinds
According to a Yardi Matrix report, 40 assets changed hands year-to-date in Los Angeles as of September for a total of $1.2 billion, down 77 percent when compared to the same interval last year. The average per-unit price was $325,294, almost double than the national average, but 25 percent lower than last year’s figure.
The metro had some 32,951 units under construction as of September, with 6,153 units having broken ground since the beginning of the year. Deliveries, totaling 6,277 units, were 15.9 percent lower than the ones recorded in the same period of last year.
Notable projects underway in the area include Apollo, a 265-unit community developed by Cityview and Stockbridge. That property is slated for completion in 2025.
