Luxe Waterfront Apartments In Marina Del Ray Sell

The developer and operator of a 50-year-old luxury waterfront apartment complex in Marina Del Ray sold the property for $62 million, a source familiar with the deal said.

Irvine-based Far West Management offloaded Villa Del Mar to an undisclosed buyer, according to Colliers, which brokered the deal.

The deal included a cap on how much the landlord can increase rent connected to the consumer price index, an almost $7 million anchorage improvement requirement due toward the end of the decade, and and a ground lease with 35 years remaining — with the buyer assuming that ground lease with the County of Los Angeles, which owns the land.

After developing the 198-unit multifamily complex at 13999 Marquesas Way about half a century ago, the seller committed more than $27 million in capital improvements over the past decade.

The property is on more than 5 acres and has a 1,500-linear-foot view of the marina. It is the first time a waterfront apartment complex has traded hands in Marina del Rey in more than five years, and one of only four in the past decade, a news release about the deal notes.

“This was a rare opportunity to acquire a flagship coastal asset with inherent scarcity, stable cash flow, and numerous value-creation avenues,” Colliers’ Kitty Wallace said in the release.

The property features one- and two-bedroom apartments with private balconies or patios, plus a pool and spa, tennis and basketball courts, a fitness center and boat slips.

In Los Angeles, Marina Del Ray commands the highest multifamily rents at $3,771 per square foot, with a 5 percent vacancy rate, according to the latest CBRE report. Total multifamily investment sales in the first quarter in all of Los Angeles amounted to $918.5 million in total volume, compared to $1.5 billion the prior quarter, per CBRE.

Far West Management said it plans to remain in the Southern California coastal market and actively seeks acquisition opportunities. Far West Management lists other apartments in Laguna Beach and Beverly Hills on its website.