January 20, 2016— Marcus & Millichap (NYSE: MMI) has arranged the sale of The Biarritz, a 22-unit investment opportunity on San Vicente Boulevard in Santa Monica, Calif. The $13 million sales price equates to nearly $600,000 per unit and more than $600 per square foot.
“Most of the multifamily buildings nearby are under long-term ownership and haven’t been renovated,” says Marcus & Millichap executive vice president investments Ron Harris. “The Biarritz has 10 apartments that have been upgraded to achieve rents on a par with units closer to the beach on Ocean Avenue.”
Harris, along with vice president investments Paul Darrow and senior associate Michael DiSimone, all in Marcus & Millichap’s Los Angeles office, represented the seller, Coastline Capital Partners, and sourced the buyer, a private investor.
“Demand for The Biarritz apartments should remain strong as there are very few alternatives,” says Darrow. “By renovating the remaining 12 units, the new owner will be in a position to reduce loss-to-lease and maintain lower loss-to-lease in the long term.”
The Biarritz is located one-half mile from 3.5 miles of beaches at 316 San Vicente Blvd. in Santa Monica, between Ocean Avenue and 4th Street. The location is near Palisades Park, the Beach Club, Annenberg Community Beach House, the Santa Monica Pier, and the Santa Monica Stairs. Major employment centers such as Brentwood, Westwood, Beverly Hills and Century City are a short commute away.
“Santa Monica is an affluent submarket on the verge of a new era where residents, commuters and visitors can move throughout the city without long traffic delays,” adds DiSimone. “The opening of the new Exposition line light rail Metro stations in downtown Santa Monica in early 2016 is expected to have a rising tide effect, making the area an even more compelling location for residents, employers and investors.”
“This transaction represents another successful disposition for Coastline’s vertically integrated platform,” notes Jimmy Killian, chief operating officer of Coastline Capital Partners.
“Our ability to identify unique opportunities is complemented by our innovative approach to renovation and management. The end result is a highly desired boutique community that translates into supercharged investor returns upon disposition.”
The Biarritz is a two-story multifamily building situated on approximately 0.49 acres with a total area of 20,490 square feet. The unit mix is 14 one-bedroom/one-bath units, six two-bedroom/two-bath apartments and two three-bedroom/two-bath units. Shared amenities include a swimming pool, 22 tuck-under parking spaces, a courtyard, and on-site laundry facility. The 10 upgraded apartments have elements such as marble countertops, Carrera stone kitchen flooring, French oak-stained original hardwood flooring, stainless-steel appliances, Italian roller shades, Carrera hex bathroom tile, Moen plumbing fixtures, and full-size Bosch European-style vent-less washers and dryers.
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