AVALON, CALIF. — Marcus & Millichap has arranged the sale of Tremont Street Apartments, a 62-unit affordable housing property in Avalon, the only incorporated city on Santa Catalina Island. The asset sold for approximately $8.6 million. The seller was a limited partnership known as Black Rose Catalina, and the buyer was Newport Beach, Calif.-based Tailwind Investment Group. Arteen Zahiri and Tony Azzi, both members of the Azzi Group in Marcus & Millichap’s Los Angeles office, represented the seller and procured the buyer.
Built in 1983, the apartment community operates under a Section 8 Housing Assistance Payments (HAP) contract and is subject to a ground lease with the Santa Catalina Island Co. through 2053. The property is expected to continue operating as an affordable housing community under its existing HAP contract and long-term ground lease. The Santa Catalina Island Co. is a private, for-profit hospitality and real estate group that owns major tourism operations, commercial properties and land on Catalina Island.