Adjacent Multifamily Assets in Hermosa Beach Sell for $275M
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.”
Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM.
In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.