A 105-unit luxury apartment complex in Redondo Beach has sold for $74.5 million, or more than $709,000 per unit.
Clovis-based Ideal Capital Group has sold the property, at 616 Esplanade, to an anonymous private investor.
Dean Zander and Stewart Weston of CBRE Group Inc. represented the seller in the transaction. The buyer was represented by Ryan Rembert and Mason Rowland of KW Commercial.
The property, known as Elements 616, spans 1.2 acres. It has undergone $25 million in renovations since 2013. Ideal Capital acquired the property in 2019 and completed renovations in 2020.
“Despite high median incomes in the area, South Bay’s home prices make renting an incredibly attractive option, especially renting from a premier beach community like Elements 616,” said Kevin Conway of Ideal. Capital in a press release. “By renovating, renaming and improving Elements, our team has been able to create tremendous value for our investors and the community at large.”
Building amenities include water views from 40% of units, an upgraded residents’ lounge, swimming pool, fitness center, laundry room, and elevator cab.
“Elements 616 has been completely redesigned by Ideal and is a well-positioned coastal multi-family asset that has appealed to many California investors,” Zander said in a statement. “The proximity to Silicon Beach, its irreplaceable location, combined with the extent and quality of the renovations were a huge draw for the new owner.”
The property has studios or studio lofts, one bedroom units, one bedroom den or loft units, and two bedroom units. It also has a large underground car park.
“The complex is a premier asset, proud of its ownership, which still offers value-added potential that has proven extremely attractive to investors in the area,” Weston said in a statement.
The new owner still has the ability to add value as there are a handful of units that can still be renovated, according to CBRE.
“We are grateful to have supported our client in this tremendous acquisition. He started his career in real estate 40 years ago dreaming of one day owning such a property. We are so happy to have been able to be part of this dream come true,” Rowland said in a statement. “Our client has strategically enhanced his portfolio and secured the perfect equity investment since selling his legs down to acquire this iconic asset.”
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