The Beverly Hills real estate investment company that owns Manchester Center has purchased four multifamily properties in Fresno for $14.7 million.
- Cedar Creek, 106 units built in 1980, at 4893 E. Lane Ave.
- Redwood Canyon, 92 units built in 1971, at 5715 E. Beck Ave.
- Sequoia Ridge, 80 units built in 1971, at 454 S. Waverly Ave.
- Sycamore Heights, 132 units built in 1974, at 5630 E. Shields Ave.
Decron bought the properties out of foreclosure in 2011. The company then spent thousands of dollars renovating the units to increase the dismal occupancy levels to more than 90%.
“At the time, the properties suffered from deferred maintenance and over 20% vacancy,” said David Nagel, Decron’s president and chief executive officer. “One property was almost 30% vacant.”
The Fresno office of Hendricks & Partners handled the sale. More than 100 people and groups made up of investors, renovation experts, pension advisers, affordable housing operators and private owners were interested in buying the properties, the multifamily investment banking company said.
The Central Valley multifamily market is “very attractive” compared to other areas of southern and northern California where there are aggressive cap rates – the rate of return on an investment property based on the expected income – and prices per unit, said broker Dean Zander.
“With new construction, improved employment numbers and a growing tenant base, Fresno and surrounding communities will continue to strengthen and improve,” Zander said.
Michael Daniel, a managing partner at Omninet, said the purchase is a solid addition to the company’s existing multifamily portfolio.
Omninet plans to buy an additional $200 million in multifamily properties this year and in the future. The company currently owns Manchester Center, Fresno’s aging regional shopping mall at Blackstone and Shields avenues. Omninet plans a major renovation of the mall.