COSTA MESA, CA—The Praedium Group, a New York City based nationalreal estate investment firm andlocal operating partner, Ocean West Capital Partners, a real estate owner and manager based in Los Angeles, CA, announced the disposition of the eight-property Westbay Portfolio in Costa Mesa, CA for $59.3 million. The partnership originally acquired the portfolio in 2010 for $46.8 million and the assets were sold separately to a number of individual investors based in Southern California. In December 2012, the partnership sold the final five assets in the portfolio.
“The Westbay Portfolio was a selection of assets that were very well located but underperforming on acquisition,” said Praedium Managing Director Bob Murray. “We were able to implement a strategic management plan that improved the operations of the assets and increase the revenue of the portfolio by 18.3% during our ownership.”
The Westbay Portfolio is comprised of 295 multifamily units across eight well-located properties, with units ranging in size from studios to three bedroom residences. Located in the strong Costa Mesa submarket, the Westbay properties are conveniently located near to the Newport Beach and Irvine employment centers, and benefit from the area’s diverse economic base including the University of California at Irvine, Boeing, Hoag Hospital, First American Title Insurance and Experian.
“We are very pleased with the results of the investment in the Westbay Portfolio. With proactive management, we were able to significantly drive rents and structure a staged disposition that maximized value,” said Ocean West Principal, Russ Allegrette.
As part of its ongoing investment strategy, Praedium continues to manage the properties within its existing portfolio, and identify assets throughout the country for new acquisition. The Westbay Portfolio was acquired by The Praedium Fund VII, L.P., a $900 million real estate private equity fund with current holdings of $2 billion.
The Praedium Group is a privately-held real estate investment firm focusing on under-performing and under-valued assets throughout the United States. Ocean West Capital Partners, based in Los Angeles, is focused on acquiring and operating office and multifamily properties in primary West Coast markets.