LOS ANGELES — In less than one week, Corona, Calif.-based Watermarke Properties has acquired two major Los Angeles apartment properties for a total of $158 million. Most recently, Watermark purchased 705 West Ninth Street for $110 million. The 35-story tower, originally a condo tower later converted to apartments, was acquired from Meruelo Maddux Properties, which filed for Chapter 11 bankruptcy last year. All of the tower's 214 units were vacant at the time of closing. Watermarke has already commenced a leasing campaign, renaming the property Watermarke Tower in the process.
Prior to the closing of 705 West Ninth Street, Watermarke closed on the $48 million acquisition of The Gardens at Wilshire Center, which is located in the Wilshire Center/Koreatown submarket. The six-story, 159-unit property was sold by a joint venture between Burbank, Calif.-based Chandler Properties — which developed the property in 2008 — and Denver-based Amstar Group. The deal was brokered by the Irvine, Calif., office of Moran & Co.
Both communities feature an extensive amenity package. The two properties contain resort-style swimming pools, fitness centers, movie screening rooms, lounges and landscaped outdoor areas. Both buildings also feature ground-floor retail space.
The purchases are part of an long-term acquisition program undertaken by Watermarke. Since August 2007, the company has puchased 10 multifamily communities as well as four office and industrial properties for a total of approximately $500 million. The company also has two development projects in the pipeline. Construction will begin this spring for Corona North Main, a transit-oriented development in Corona that will contain 830 residential units and approximately 75,000 square feet of retail and office space. In addition, a 256-unit apartment community located in Mission Viejo, Calif., will break ground in spring 2011.
— Coleman Wood