IPA Brokers $275M Sale of Two-Property Multifamily Portfolio in Hermosa Beach
HERMOSA BEACH, CALIF. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has brokered the $275 million sale of two adjacent multifamily properties in Hermosa Beach, a beachfront city in Los Angeles County. The 285-unit Playa Pacifica sold for $162.5 million, while the 169-unit The Gallery sold for $112.5 million.
Built in 1972, Playa Pacifica was partially renovated in 2015 and 2016. The average unit size is 590 square feet. Amenities include two solar-heated pools, a fitness center, business center, clubhouse, spa and outdoor lounge with barbecue area.
The Gallery was built in 1971 and partially renovated in 2003 and 2004. Units average 831 square feet. Amenities include a pool, fitness center, spa, sauna and covered parking.
Both communities are located near Hermosa Beach Pier. Neighborhood attractions include The Strand and Greenbelt Park, along with beachfront nightlife and restaurants.
Kevin Green, Greg Harris and Joseph Grabiec of IPA represented the seller, an institutional investor, and procured the buyer, Prime Residential. Previously, the IPA team brokered the sale of the properties in 2006 for $133 million.
“The sale represents the acquisition of 24 percent of the entire apartment stock in Hermosa Beach and nearly 70 percent of the like-kind apartment stock in Hermosa Beach and Manhattan Beach,” says Green, senior managing director.
“Hermosa Beach is one of the most affluent communities on the West Coast, and there have been no institutional-sized multifamily properties built here in the last 50 years,” adds Grabiec, senior managing director. “The average annual household income in Hermosa Beach is over $190,000, and more than 55 percent of the population lives in renter-occupied housing, which creates compelling demand for apartment homes.”
— Kristin Hiller