Marcus & Millichap Sells $37.25M Apartment Portfolio in San Pedro, CA

SAN PEDRO, Calif., Sept. 23, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of Harbor View and Bay Ridge, (top right photo)  two apartment communities totaling 220 units in San Pedro. The sales price of $37.25 million represents $169,318 per unit and $168.74 per square foot.

Greg Harris, an executive vice president investments and senior director of the firm’s National Multi Housing Group (NMHG) in Encino, and Ron Harris, a senior vice president investments and senior director of the NMHG in Los Angeles, represented the seller, Equity Residential.

“Despite current market conditions, we continue to create opportunities for our clients,” says Greg Harris. “The core-plus asset located adjacent to Rancho Palos Verdes attracted the most qualified and sophisticated buyers in the marketplace seeking a stable long-term investment with future upside.”

“Although rents at the property had fallen approximately 20 percent during the past year and there was some softness in operations, investors felt that rental rates were beginning to stabilize,” says Ron Harris. “Due to the high quality of this asset and the ability to quantify a moving-forward net operating income, the property attracted offers from a variety of buyers. The buyer closed at a cap rate of approximately 7 percent based on today’s asking rents,” adds Harris.

Located at 1286 and 1099 W. Capital Drive and built in 1984 and 1987 respectively, Harbor View and Bay Ridge are exempt from Los Angeles rent control laws.

Harbor View is a 160-unit multi-family community and Bay Ridge has 60 units.

Both assets offer deluxe accommodations with nine-foot and vaulted ceilings, gourmet kitchens with gas ranges, wood-burning fireplaces, central air-conditioning and heating and individual washers and dryers. Amenities include swimming pools, spa, state-of-the-art fitness center, dry heat sauna, oversized sundeck and ample onsite parking. Each asset also has condominium entitlements.

San Pedro is a neighborhood in the city of Los Angeles located at the eastern tip of the Palos Verde peninsula with views of the Pacific Ocean.


Press Contact:  Stacey Corso, Communications Department, (925) 953-1716