Decron Properties has acquired Tamarron Apartments, a 328-unit garden-style multifamily community in Phoenix, for $128 million.
Tamarron, which comes on the heels of Decron’s recent $107.5 million purchase of Ascent at Papago, increases Decron’s local portfolio to approximately 2,100 units.
“Demand for multifamily in the Greater Phoenix area continues to be exceptionally strong, especially in the West Valley market due to its rapidly growing employment base and nation-leading in-migration,” said Cunningham.
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While Tamarron Apartments is Decron’s eighth acquisition in Phoenix, it is the firm’s first in the West Valley, a booming submarket with 1.7 million residents that is expected to grow to 2.1 million by 2030. The growth has been fueled by an influx of large industrial and healthcare companies moving into the area.
To accommodate the migration into the area of companies such as Taiwan Semiconductor Manufacturing Company, KORE Energy and countless logistics companies, more than 25 million square feet of industrial buildings are currently under construction. Healthcare is another growing industry in the market, with 36 percent of all healthcare workers in Maricopa County living in the West Valley.
“This acquisition in the West Valley now gives us exposure to the entire Phoenix MSA,” said Decron CFO Daniel Nagel. “When we entered the market a year ago our objective was to be in all of the growth areas of Phoenix and with this acquisition in the West Valley, our portfolio now successfully reflects that goal.”
Located at 4410 N 99th Ave., Tamarron offers a mix of one-, two- and three-bedroom floor plans housed in 42 two-story residential buildings. Built in 2005, Decron plans to make upgrades to both the units and common areas that will reflect the high standards of excellence residents of all Decron properties have come to expect.
While Decron has built an extensive portfolio in Phoenix over the last 12 months, Nagel believes there is still plenty of runway that exists for future acquisitions in Phoenix.
“Yes, high interest rates make the ability to acquire assets more challenging than it was a year ago when we entered the market, but we plan to remain active moving forward.”