Sam Zell’s Equity Residential Unloads 454 Units in LA for $275M
Prime Residential acquired the 285-unit Playa Pacifica and 169-unit The Gallery
By Greg Cornfield August 19, 2021 9:05 am
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Major multifamily investment is flowing in Southern California.
Sam Zell’s Equity Residential (EQR) has unloaded two adjacent properties with 454 units in Hermosa Beach in Los Angeles County’s South Bay for a combined $275 million. Prime Residential acquired the 285-unit Playa Pacifica and 169-unit The Gallery for $162.5 million and $112.5 million, respectively, two blocks from the beach.
Equity Residential acquired the properties for $133 million in 2006, according to Institutional Property Advisors (IPA), a division of Marcus & Millichap (MMI), which brokered the more recent deal.
“The sale represents the acquisition of 24 percent of the entire apartment stock in Hermosa Beach and nearly 70 percent of the like-kind apartment stock in Hermosa Beach and Manhattan Beach,” IPA’s Kevin Green said in a statement.
Despite historic levels of unpaid rent due to the pandemic, and struggles over corresponding eviction bans, apartment investment sales this year have more than doubled in Southern California compared to last year.
Playa Pacifica was built in 1972 on four acres at 415 Herondo Street, and it was partially renovated about five years ago. The average apartment size is 590 square feet, and the property features swimming pools, a fitness center, a business center, a clubhouse, a spa and an outdoor lounge.
The Gallery was completed on two acres in 1971, and renovated about 17 years ago. The average unit size is 831 square feet, and the property features a swimming pool, a fitness center, a spa, and a sauna.
Green, Greg Harris and Joseph Grabiec with IPA represented the seller.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
