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Chinese Investment Firm Pays Nearly $46 Million for Valencia Apartments

Gemdale USA has closed a deal in Santa Clarita Valley to buy The Madison apartments at Westfield Valencia Town Center for $45.9 million, or more than $353,000 per unit, according to Costar Group. The subsidiary of China’s Gemdale Corp. bought the 15-year-old Valencia property from NF Capital Finance Southwest LP, an affiliate of Los Angeles-based Decron Properties. The purchase consists of three Westfield Valencia Town Center-adjacent mid-rise buildings at 24555 Town Center Drive. Calabasas brokerage Marcus & Millichap handled the deal. “The community benefits from excellent submarket fundamentals, including a 54.9 percent increase in population growth over the last 16 years, a vacancy rate of 1.7 percent in 2016, and median household income that is projected to increase by 13 percent to $106,321 by 2021,” Joseph Grabiec, senior managing director at Institutional Property Advisors, a division of Marcus & Millichap, said in a statement. “We executed our business plan of converting a broken condo project back into a conventional apartment building,” added Decron Properties Chief Financial Officer Daniel Nagel in a statement. “We created a lot of value by doing so.” Per Gemdale’s website, the Chinese company is also developing two other Greater Los Angeles projects in a joint venture with L.A.’s LaTerra Development. Recently, Gemdale USA has been on a tear purchasing properties in offbeat markets. In 2016, Gemdale USA spent $26.3 million to acquire South Hills, a refurbished 85-unit West Covina complex originally built in 1966.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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