Decron Properties Buys 163-Unit Property in L.A.’s Miracle Mile for $114M

Decron Properties has acquired a 163-unit property in Los Angeles’ Miracle Mile for $114 million as the firm’s first L.A. deal in nearly two years.

The Los Angeles-based investment firm acquired the asset at 5550 Wilshire Boulevard, a residential and retail property developed in 2010, at what Decron described as a substantial discount to replacement cost. After focusing on Sun Belt markets, the firm said it continues to pursue opportunities across Los Angeles, San Jose, Orange County, San Diego and Seattle as well.

“Our growth-market strategy has never been a referendum on Los Angeles,” Decron President and CEO David Nagel said in a statement. “For a period, the risk-adjusted returns here simply weren’t competitive with what we were finding in the Sun Belt markets.”

Nagel added that Los Angeles remains “one of the nation’s most important and chronically undersupplied housing markets,” where new supply is difficult and expensive to build.

5550 Wilshire includes one-, two- and three-bedroom apartments and townhomes. Amenities include a pool and spa, a resident lounge, a private movie theater and rooftop lounges. The property also includes 14,686 square feet of ground-floor retail that is fully leased to tenants that include Chipotle, Five Guys and FedEx Office.

JLL’s Blake Rogers represented both Decron and the seller in the transaction.

Decron owns and manages nearly 10,000 multifamily units and about 1 million square feet of retail across California, Washington and Arizona, with a portfolio totaling roughly 8.7 million square feet.