SANTA MONICA, Calif., April 28, 2021 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Citrus Suites Apartments, a 70-unit, two-building apartment complex located just one parcel from the beach in Santa Monica, California. The asset traded at $39.5 million, or $564,285 per unit (ed. note; the seller of the property was Chicago-based Equity Residential, no detail on the buyer has been provided at this time).
“Citrus Suites Apartments is one of only 16 West Coast apartment communities of 50-plus units located within 300 feet of a sandy beach,” said Kevin Green, IPA senior director. “With 50% of the units vacant due to historical short-term furnished operations, the buyer can immediately execute a large-scale renovation plan and stabilize the property in less time than a traditional value-add opportunity would take.” Green and IPA’s Joseph Grabiec and Greg Harris represented the seller, an institutional investor, and procured the buyer, Black Equities Group. “Santa Monica is one of the most expensive areas of Los Angeles,” added Grabiec. “The median price of a single-family home is $2.6 million, 72% of the population lives in rental housing, and demand for luxury rental housing is strong.”
Located between Downtown Santa Monica and Ocean Park, Citrus Suites Apartments was built in 1964 on the corner of Ocean Way and Pico Boulevard. Residents are a five-minute walk from high-paying jobs with major technology start-ups and industry-leading companies such as Salesforce, TrueCar, and PlayQ. Additional employers, including Google, Facebook, Netflix, Riot Games, Hulu, Amazon Studios, Viacom, and Lionsgate are a short walk or drive away. The Santa Monica Station of the Los Angeles Metro’s E Line, which connects riders from Downtown Santa Monica to Downtown Los Angeles is within a mile. “Since 2018, 2.6 million square feet of office space has been leased by prominent entertainment and technology companies in Santa Monica, Playa Vista, and Culver City,” noted Harris. “This strong growth in employment will further intensify demand for luxury rental housing as more high-income earners move to the area.”
Citrus Suites Apartments’ location gives tenants access to Santa Monica’s unique array of retail boutiques, contemporary eateries, the Santa Monica Pier, Third Street Promenade, and Santa Monica Place. The property’s community amenities include a heated outdoor swimming pool, 24-hour fitness center, and a rooftop deck with beach and ocean views. Apartments have private entrances, gas fireplaces and private balconies.
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios.
