SACRAMENTO, CA – Decron Properties has traded a 264-unit multifamily property in Sacramento, CA and cash to Sequoia in a direct exchange for a two-property 504-unit apartment portfolio in Simi Valley, CA in a transaction valued at $193 million.

“A direct exchange is highly unusual and had never been executed by either Decron or Sequoia and a lot of pieces needed to fall into place in order for this transaction to occur,” said Decron Vice President of Acquisitions & Finance Daniel Nagel.  “It started with Institutional Property Advisors (IPA) representing both parties in their respective sales. When we learned that Sequoia Equities was as interested in our Sacramento property as we were in their Simi Valley portfolio, we questioned the brokers to find a creative way for both companies to achieve their business goals at a time where deal volume has slowed significantly and inventory has become extremely limited.” 

“This could have never worked if we had not previously closed multiple transactions with both Decron and Sequoia,” said Stan Jones, IPA executive managing director “Both firms have a fantastic reputation and are active buyers in the marketplace. Putting the two transactions together while understandable was fraught with risk.  We are pleased at the result and our ability to help two vital clients achieve their investment goals.”

While the transaction took no more than 70 days to complete, the complexity of the deal required more than 15 lawyers across five law firms to close. 

Decron bought the 372-unit The Villas and the 132-unit Overlook located on Country Club drive within one-half-mile of each other in the 4,000-acre master plotted community of Wood Ranch. Together the properties represent the largest multifamily asset in Simi Valley, a bedroom community 45 miles north east of downtown Los Angeles.   

Both highly amenitized properties were built in 1986 and feature one- and two-bedroom floor plans that cater to young working professionals that have been priced out of home ownership in the affluent suburban Ventura County neighborhood where the median home price is $762,000.  The Villas boast two resort-style swimming pools, two tennis courts, and a putting green on a 15-acre site.  The Overlook includes a swimming pool and spa, fitness center, and sports court on a low-density eight-acre site. 

Serving a population of more than 162,000 the inventory of multifamily housing in the Simi Valley/Moorpark submarket totals only 6,523 units, according to IPA.  Of the 702 units in the construction pipeline only 102 are entitled.

“The Ventura County economy continues to be driven by strong job growth in high-tech, clean energy, and healthcare,” added Greg Harris, IPA executive managing director. “Highly educated professionals are migrating to the area from Los Angeles and beyond, for the jobs, fantastic schools and quality of life, but are finding quality affordable housing options hard to come by in one of the most supply constrained multifamily markets in Southern California. The confluence of demand drivers and limited supply makes a compelling value-add tale.” 

Sequoia took title to Broadstone at Strawberry Creek, a 264-unit gated apartment community in the Sacramento suburb of Elk Creek. Broadstone was Decron’s first investment in Northern California when they bought the property in June 2012.  

“This was an brilliant investment that performed very well for us over the five-year hold period,” added Nagel.   “While Sacramento continues to boast sound market fundamentals for multifamily investment, we were operating inefficiently because we only had one asset in the submarket. The equity from the sale of Broadstone is being deployed to meet our current strategic focus in more core California markets adjacent to major employment centers which includes first ring submarkets around Los Angeles, Orange County, San Diego, Silicon Valley and East Bay (Contra Costa and Alameda County) where we believe sustained rent growth can be achieved over time.

Stan Jones, Philip Saglimbeni and Salvatore Saglimbeni in IPA’s Palo Alto office along with Gregory Harris, Kevin Green, and Joseph Grabiec in the firm’s South Bay/Encino office represented Decron and Sequoia in the complex transaction. 

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FARMINGTON HILLS, MI – Village Green, a nationally-recognized apartment management and services company, announced that it has recently completed a year-long strategic transition where it realized an expansion in its corporate portfolio to new markets, including Atlanta, and Phoenix as part of the company’s valued and growing relationship with property owners looking to make stronger connections with experience-minded renters.

Led by Village Green’s passionate and engrained belief that the customer needs and impressions should be at the core of every interaction, the company has furthered investment in social media channels and touch point surveys in order to gain real-time feedback. As discerning renters seek a more meaningful experience between renter and property manager, the incorporation of feedback and social community channels has taken down traditional barriers while building up a hospitality-minded atmosphere.

This expansion of properties and services completes a one year strategic transition led by CEO Diane Batayeh, a long-time Village Green team member and advocate, whom has worked to redefine the relationship that the company has built with its ever-expanding, national portfolio. An industry veteran, Batayeh has sought to make a company with hospitality ideals that connects with everyone at a one-to-one level, while also understanding the needs and desires of a discerning renter. It is under Batayeh’s leadership that the company has placed a greater emphasis on understanding and satisfying the needs and passions of every customer as a corporate mission.

“When you have a team that wakes up every day with a commitment in seeing the customer have the best experience possible, that is truly at the core of what makes Village Green special,” Batayeh noted. “We are encouraging all of our people to make authentic experiences that lead to tales people want to share, so as we expand to new cities, so too does the emphasis around demonstrating our value in each unique relationship.”

An expanding portfolio for the service-driven renter

Renting an apartment is no longer just a transaction between the renter and the property manager. With amenities such as coffee bars and lounges becoming standard requested features, the relationship between Village Green and its customer has also matured in order to meet these challenges and deliver authentic experiences.

This push toward being the creator of experiences and storylines has also led Village Green to expand communications within its expanding customer base. From building out resident portals and offering text-based alerts, to interacting with its renter community via social media networks, Village Green continues to evolve its technology-based services in order to increase communications and make more valuable connections.

“As part of our continued focus on making greater relationships with our customers, we have taken direct feedback and combined it with our experience in integrating technologies into our services,” said David Ferszt, president of Village Green Management Company. “The response across the board has been simply incredible and inspirational, as we continue to invest in our most valuable asset – our greater Village Green community.

The company’s “people-first” mentality has been at the center of Batayeh and Ferszt’s collective leadership. From encouraging employees to bring new technologies to the table, to hosting an open dialogue with its associates and customers, Village Green has truly embraced the value of the experience. This focus on each individual has made a company-wide culture where each employee seeks to deliver meaningful experiences at every turn.

After all, Village Green offers something more than just an experience – it offers a home.

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DENVER, CO – Apartment Investment and Management Company (Aimco) filed an amended complaint against Airbnb in the Superior Court of California seeking injunctive relief and restitution under that state’s Unfair Competition Law and broadening its claims to include all apartment owners whose properties have been rented without Airbnb’s first obtaining their permission. Aimco also filed an amended complaint in its second lawsuit against Airbnb in Miami-Dade County, Florida, Circuit Court.

Aimco believes that a significant part of Airbnb’s business and revenues comes from its unauthorized small-term rentals of properties that Airbnb does not own and that Airbnb wrongfully profits from these transactions. In doing so Airbnb disregards its own Terms of Service, which purport to prohibit rentals that breach agreements with third-party property owners.

The lawsuits dispute Airbnb’s assertion that it serves solely as a passive, online listing platform and that all of its activities are immune from liability under the federal Communications Decency Act. The Act does not immunize Airbnb’s unlawful rentals and payment processing practices, both of which abuse landlords’ private property rights, interfere with their leases, and invite trespassers onto their private properties. According to Aimco’s complaint, Airbnb is a small-term rental broker directly involved in business transactions between hosts and guests and should be held accountable for actively encouraging, participating in, and profiting from the breaching of leases and trespassing.

“Airbnb continues its unlawful practice of knowingly promoting the breaking of lease agreements between residents and property owners and profiting from illegal rentals of properties it does not own,” said Aimco CEO Terry Considine. “There are countless examples of transient Airbnb guests causing disruption, using fraudulent passes to access resident amenities, and showing no regard for the safe, peaceful environment we strive to make for our permanent residents. Aimco is proud to take the lead in filing a class action complaint, standing up for our residents and for the thousands of property owners who have experienced upheaval due to Airbnb’s actions.”

All prospective Aimco residents undergo criminal background checks and credit history reviews before their acceptance as qualified renters.  When approved, Aimco residents sign the Company’s Excellent Neighbor Policy as part of their lease – a promise of excellent behavior and consideration for their neighbors.  Aimco objects to the fact that Airbnb transient guests are unvetted and have no vested interest in maintaining a peaceful community atmosphere.  On many occasions, Airbnb-supported trespassers have made safety, noise, and nuisance concerns for Aimco’s lawful residents, including incidents of public drunkenness and fighting requiring police help. Aimco repeatedly questioned Airbnb to stop renting Aimco’s apartments in breach of Aimco’s leases with its residents, but Airbnb refused.

Aimco filed its initial lawsuits against Airbnb in February in Florida and California.  Airbnb’s continuing refusal to stop its illegal subletting of apartments and its disregard for the rights of property owners motivated Aimco to step up its litigation efforts.

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