901 Ocean Ave. has 28 rent-controlled one- and two-bedroom units.

901 Ocean Ave. has 28 rent-controlled one- and two-bedroom units.

Luxury Living, a 28-unit multifamily building in Santa Monica, has sold for $32.6 million.

Coastline Real Estate Investments purchased the property at 901 Ocean Ave. from American Alliance Property Management.

The building was 96.4% leased at the time of the sale, according to CoStar Group Inc.
The seller wanted to leave California due to recent rent control laws, according to CoStar.

Under state regulations that went into effect in January 2020, landlords can only raise rent 5% a year plus the rate of inflation. The rules do not affect newly built properties.

Luxury Living is a three-story building with a mix of one- and two-bedroom units. It also has parking.

Marcus & Millichap’s Tony Azzi and Rabbie Banafsheha represented the buyer and the seller in the transaction.

“Ocean Avenue is the best street in town. It’s a legacy type of property,” Banafsheha said of Coastline Real Estate Investments’ interest in the property. “The buyer had the wherewithal to buy something that is a generational asset.”

He said he does not know of any changes planned for the property.

Multifamily sales slowed during the Covid-19 pandemic but started to rebound late last year.

During the previous five years, the multifamily market in L.A. usually saw about 500 sales a year of properties with 20 units or more. But in 2020, that number fell by nearly half, according to CBRE Group Inc.

Last year the market saw only $5.8 billion worth of sales compared with $9.8 billion in 2019, according to Newmark Group Inc.

Some of the biggest recent sales include the Cordova Park Apartment Homes and Sienna Heights Apartment Homes in Lancaster, which Blackstone Group Inc. sold for a combined $145.4 million; Angelene in West Hollywood, which developer Holland Partner Group sold for $124.7 million; Olive DTLA, which Waterton Associates purchased for $121 million; and Nola624 in West Covina, which sold for nearly $96 million.

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