A 105-unit luxury apartment complex in Redondo Beach has sold for $74.5 million, or more than $709,000 per unit.
Clovis-based Ideal Capital Group sold the property, at 616 Esplanade, to an unnamed private investor.
CBRE Group Inc.’s Dean Zander and Stewart Weston represented the seller in the transaction. The buyer was represented by KW Commercial’s Ryan Rembert and Mason Rowland.
The property, known as Elements 616, sits on 1.2 acres. It has undergone $25 million worth of renovations since 2013. Ideal Capital acquired the property in 2019 and wrapped renovations in 2020.
“Despite high area median incomes, South Bay home prices make renting an incredibly attractive option – especially renting a top-tier beachside community like Elements 616,” Kevin Conway of Ideal Capital said in a statement. “By renovating, rebranding and upgrading Elements, our team was able to create tremendous value for our investors and the community at large.”
The building’s amenities include water views from 40% of the units, an upgraded residents lounge, pool area, fitness center, laundry room and elevator cab.
“Elements 616 was completely reimagined by Ideal and is a well-positioned coastal multifamily asset that appealed to many California investors,” Zander said in a statement. “The proximity to Silicon Beach, its irreplaceable location, combined with the scope and quality of the renovations were a huge draw for the new owner.”
The property has studio or studio lofts, one-bedroom units, one-bedroom den or loft units and two-bedroom units. It also has a large underground parking garage.
“The complex is a best-in-class, pride-of-ownership asset that still offers value-add potential that proved extremely attractive to area investors,” Weston said in a statement.
The new owner still has the ability to add some value as there are a handful of units that can still be renovated, according to CBRE.
“We are grateful to have assisted our client in this amazing acquisition. He began his career in real estate 40 years ago dreaming of one day owning such an asset. We are so happy we got to be a part of that dream coming true,” Rowland said in a statement. “Our client has strategically upgraded his portfolio and had perfect equity placement from the sale of his down-legs to acquire this iconic asset.”
The buyer isn’t the only one interested in acquiring multifamily properties in L.A.