Two adjacent Hermosa Beach multifamily assets located two blocks from the beach recently sold to Prime Residential. The assets are 285-unit Playa Pacifica and 169-unit The Gallery, which sold for $162.5 million and $112.5 million respectively.

Kevin Green, Greg Harris and Joseph Grabiec of Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller, an institutional investor, and procured the buyer. The properties were previously sold by the IPA team to the seller in 2006 for $133 million.

“The purchase gives the buyer a sizable footprint in a coastal location, a compelling value-add opportunity and the ability to operate the properties as a single entity,” says Harris.

The properties are located less than a mile from the famous Hermosa Beach Pier.

“Hermosa Beach is one of the most affluent communities on the West Coast, and there have been no institutional-sized multifamily properties built here in the last 50 years,” Grabiec adds. “The average annual household income in Hermosa Beach is over $190,000 and more than 55 percent of the population lives in renter-occupied housing, which creates compelling demand for apartment homes.”