A 105-unit luxury apartment complex in Redondo Beach has sold for $74.5 million
Clovis-based Ideal Capital Group sold the 81,647-square-foot complex at 616 Esplanade, the Los Angeles Business Journal reported. The buyer was an unidentified Los Angeles-based family trust.
The complex known as 616 Esplanade has gotten about $25 million worth of improvements since 2013. Ideal Capital bought the 1.2-acre property a block from the ocean in 2019.
Amenities within the 5-story complex include ocean views from 40 percent of the units, an upgraded residents lounge, resort-style pool, fitness center, laundry room, quartz countertops, community pet spa and a surfboard washing station.
The property has a mix of 16 studios and lofts, 14 one-bedroom units, 25 one-bedroom den/lofts units and 21 two-bedroom units. It also has a large underground parking garage.
CBRE Group Inc.’s Dean Zander and Stewart Weston represented the seller in the transaction. The buyer was represented by KW Commercial’s Ryan Rembert and Mason Rowland.
The new owner still has the ability to add some value, with a handful of units that have not recently been renovated, according to CBRE.
“Elements 616 was completely reimagined by Ideal and is a well-positioned coastal multifamily asset that appealed to many California investors,” Zander said in a statement. “The proximity to Silicon Beach, its irreplaceable location, combined with the scope and quality of the renovations were a huge draw for the new owner.”
The deal indicates the ongoing strength of the Los Angeles County apartment market, with vacancies tightening and rents on the rise.
The area’s rents have been increasing for 14 straight months–the last decline was in January of last year, according to an Apartment List report. Median rents countywide stand at $1,756 for a one-bedroom apartment and $2,304 for a two-bedroom.
Over the month of March, rents have increased 1.0 percent, and are up by 16.0 percent compared to the same time last year, according to the April 2022 report. However, Los Angeles’ year-over-year rent growth lags the state average of 16.4 percent, as well as the national average of 17.1 percent.
[Los Angeles Business Journal] – Dana Bartholomew