Decron Pays $91 Million To Buy Ninth Greater Phoenix Apartment Complex

Article originally posted on CoStar on August 3, 2022

Luxury Wyatt Apartments in Gilbert Sell for Higher-Than-Average Per-Unit Price

The Wyatt is nearly two-thirds occupied just a few months after opening in Gilbert, Arizona. (CoStar)
The Wyatt is nearly two-thirds occupied just a few months after opening in Gilbert, Arizona. (CoStar)

Los Angeles investment firm Decron Properties bought a luxury Phoenix-area apartment complex for $91 million, its ninth multifamily purchase in the fast-growing market in the past year.

Decron paid $421,300 per unit to buy the Wyatt at 1233 S. Gilbert Road, well above the $364,000-a-unit average price in Phoenix’s Gilbert market, according to public sale documents and CoStar data. The upscale complex on just under 10 acres finished construction in the last few months and was purchased from its developer, a residential real estate affiliate of Terre Haute, Indiana-based Thompson Thrift.

The 14 five-story buildings are 65% rented and Decron expects the complex to be near full occupancy by December, according to a statement from the company.

The purchase follows Decron’s $128 million purchase of the Tamarron Apartments in Phoenix’s Litchfield Park market and the $107.5 million acquisition of Ascent at Papago last spring. The latest deal increases its local portfolio to more than 2,300 units, Decron said in the statement. The investor has acquired five of its nine greater Phoenix properties since December.

Gilbert’s population has increased by nearly 20% since 2010, one of the fastest growth rates in greater Phoenix, with expanding businesses such as web hosting service GoDaddy, Banner Health and Dignity Health drawing many new residents to the area. Accounting firm Deloitte recently established a tech hub that is expected to employ up to 2,500 high-wage workers about 4 miles south of the Wyatt, Decron executives said the statement.

Investors have purchased nearly $800 million in multifamily properties over the past year in Gilbert, one of the most expensive markets in greater Phoenix for investors and renters. Asking rents average $1,830 a month in Gilbert compared with $1,600 for greater Phoenix. The average sales price of $364,000 a unit in the market is well above the Phoenix average of $300,000, CoStar data shows.

For the Record

Steve Gebing and Executive Managing Director Cliff David of Marcus & Millichap’s Institutional Property Advisors division represented the seller and brought in the buyer.