Pico Lanai is Santa Monica’s second-largest land parcel.

Pico Lanai is Santa Monica’s second-largest land parcel.

The iconic Pico Lanai Apartments, a 174-unit complex in Santa Monica, sold for $58.6 million, Institutional Property Advisors announced Dec. 2.

Institutional Property Advisors’ Kevin Green, Greg Harris and Joseph Grabiec represented the seller, Raintree Partners. The brokerage is a division of Marcus & Millichap.

Pacific Reach Properties purchased the building at 2501 Pico Blvd. for more than $336,000 per unit.

“Pico Lanai is one of only 15 assets greater than 100 units in this submarket, and just one other 100-plus-unit multifamily property has sold here in the last five years,” Green said in a statement.

The building was constructed in 1960 and sits on 2.8 acres. It is the second-largest land parcel of any existing multifamily property in Santa Monica, according to Green.

Pico Lanai has 173 one-bedroom units, averaging 377 square feet, according to CoStar Group Inc. It also has one two-bedroom unit.

The property, which is near the coast and tech companies in Silicon Beach, offers a redevelopment opportunity.

“Pico Lanai can be repositioned to cater to high-income earning, tech-savvy millennials who will gravitate towards a unique living experience, where they can live, work and play,” Harris said in a statement.

Raintree Partners purchased the property for $45.1 million, or roughly $259,000 per unit in 2014, records show.

Buyer Pacific Reach Properties is active in Chicago, Phoenix, Calgary, Toronto and Vancouver, in addition to L.A. It owns more than 1,800 apartment units, 1.4 million square feet of commercial real estate and more than 1,200 hotel rooms.

Its other properties in Los Angeles include the 11-story Blu Beverly Hills on Wilshire Boulevard and National City Tower downtown.

Dan Dibadj, director of acquisitions at Pacific Reach, said in an email that the company would finish a renovation of Pico Lanai’s existing units and update the common areas and curb appeal.

 “Pico Lanai represents an extremely rare opportunity to acquire a coastal asset of considerable size with tremendous upside,” Dibadj said.

“We are long-term, value-add investors that look for unique assets in markets with strong real estate fundamentals — job growth, population growth, limited new supply, all of which are strong trends in Santa Monica,” he added.

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