The 70-unit Citrus Suites Apartments property at 1915 Ocean Way in Santa Monica sold for $39.5 million.

The 70-unit Citrus Suites Apartments property at 1915 Ocean Way in Santa Monica sold for $39.5 million.

A 70-unit multifamily property in Santa Monica dubbed the Citrus Suites Apartments has sold for $39.5 million.

Black Equities Group Ltd. purchased the buildings from an institutional investor.

Greg Harris, Kevin Green and Joseph Grabiec with Marcus & Millichap’s Institutional Property Advisors division represented the seller and found the buyer for the property at 1915 Ocean Way.

Tucked behind Hotel Casa del Mar, the apartment property has two buildings, both built in 1964, and features a heated pool, a 24-hour fitness center and a rooftop deck with ocean views.

“Citrus Suites Apartments is one of only 16 West Coast apartment communities of 50-plus units located within 300 feet of a sandy beach,” Green said in a statement. “With 50% of the units vacant due to historical short-term furnished operations, the buyer can immediately execute a large-scale renovation plan and stabilize the property in less time than a traditional value-add opportunity would take.”

Grabiec added that the property’s Santa Monica address was also desirable.

“Santa Monica is one of the most expensive areas of Los Angeles,” Grabiec said in a statement. “The median price of a single-family home is $2.6 million, 72% of the population lives in rental housing, and demand for luxury rental housing is strong.”

The buildings are near high-paying jobs including at offices for Google, Inc. and Riot Games Inc.

It is also within a mile of the Santa Monica Station for the Los Angeles Metro E Line.

“Since 2018, 2.6 million square feet of office space has been leased by prominent entertainment and technology companies in Santa Monica, Playa Vista and Culver City,” Harris said in a statement. “This strong growth in employment will further intensify demand for luxury rental housing as more high-income earners move to the area.”

Citrus Suites isn’t the only multifamily property to sell in Santa Monica recently.

In February, the 28-unit Luxury Living multifamily building at 901 Ocean Ave. sold for $32.6 million.

Coastline Real Estate Investments purchased the property from American Alliance Property Management.

It was 96.4% leased at the time of the sale.

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