Decron Properties has acquired Hangar at Thunderbird, a 266-unit gated luxury multifamily community located in Glendale, for $69 million.
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The acquisition was the upleg of a 1031 exchange following the firm’s successful disposition of two older properties in Ventura County, CA, 60 miles west of downtown Los Angeles. The 1031 Exchange is an example of Decron’s ongoing strategy to geographically diversify its 10,000-unit multifamily portfolio with newer assets not restricted by city or statewide rent control.
Decron acquired Hangar for $260,000 a unit, far below the average cost of $350,000 a unit that buyers were paying at height of the market in 2021-2022 according to Decron CEO David J Nagel.
“Hangar was an opportunity to acquire Class A property in a submarket with an attractive demographic base and strong renter pool at a price well below replacement,” Nagel said. “And with only one apartment community under construction within a 3-mile radius and with the current rent structure at Hangar below market, we believe the property offers substantial opportunity for growth, and feel it is a tremendous addition to our local portfolio.”
Since 2018, Decron has invested more than $1.1 billion in institutional quality assets with an average year built of 2014, primarily in Arizona and Washington State. Hangar is the firm’s 10th investment in Arizona in the last three years, bringing its unit count to approximately 2,500.
Completed in 2023 by the seller, P. B. Bell, Hangar is a modern garden-style community offering a mix of one- two- and three-bedroom apartment homes housed in 19 low-rise residential building on a large 20-acre site. Each apartment home offers premium features including chef style kitchens, custom cabinetry, stone countertops and large walk-in closets. Common area amenities include a resort-style pool with poolside gaming tables, fitness center, children’s playground, EV charging stations and pet park.
Located at 15301 N. 57th Avenue, Hangar is adjacent to the Loop 101 giving residents access to multiple employment hubs across Glendale and Phoenix, including Deer Valley & Interstate 17 (I-17) Employment Corridor, home to such Fortune 500 companies as Well Fargo, Honeywell, United Health Group, Discover Financial Services, USAA, and FedEx.
“Because of a lack of developable land, and high construction costs, the area has only seen the construction of two market rate multifamily assets with 100 units or more since 2010, we feel extremely confident in Hangar’s long-term upside,” Nagel said.
