Bay Area Firm Buys Malibu Apartments for $62 Million

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San Francisco firm Pacific Eagle purchased Villa Malibu, a 68-unit, 136,000-square-foot Class A luxury apartment community on a 10-acre site at 6487 Cavalleri Road in Malibu earlier this month from Washington, D.C., private equity firm Carlyle Group for $62 million, or roughly $912,000 a unit.

Villa Malibu is fully occupied as a rental property with one-year leases, but it is entitled for residential condominiums. The possibility of a conversion was of interest to the buyer, who did not divulge exact plans, and might hold on to the property for some time before making a decision, said Matt Case of Madison Partners, who represented the seller along with Bob Safai, Darin Beebower and Brad Schlaak. The buyer was represented internally.

“The cost of housing in Los Angeles, and particularly in Malibu, is so high that a luxury condo in Malibu with ocean views could sell in the $1.5 million range, so there is a definitely a lot of value for the condo route,” Case said.

Two-bedroom lofts at the property, which average about 1,800 square feet, rent for an average of almost $5,000 a month, according to CoStar. Two-bedroom lofts, which average 2,100 square feet, rent for almost $6,000 a month. All units have outdoor balconies or patios.

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