LOS ANGELES-Watermarke Properties Inc. of Corona, CA hasacquired a newly built, 214-unit apartment tower at 705 W. NinthSt. from Meruelo Maddux Properties for $109.5 million in anall-cash, direct deal between buyer and seller that is Watermarke'ssecond major apartment acquisition in Los Angeles within a week.Peter DiLello, director of acquisitions for Watermarke, tellsGlobeSt.com that the company has renamed the 35-story projectWaterMarke Tower, has started a lease-up program and planssignificant enhancements to the amenity package at the property,which was vacant at the close of escrow.

The WaterMarke's 214 units consist mainly of one- andtwo-bedroom apartments, along with four penthouses, all atop asix-story parking structure, with a 6,800-square-foot commercialspace that is slated for a high-end restaurant. Meruelo Maddux,which is in Chapter 11 bankruptcy, initially planned the project asa condominium tower and later switched it to an apartmentdevelopment when the condo market stalled.

DiLello cites the uniqueness of the WaterMarke Tower and thestrength of the Downtown L.A. apartment market among the reasonsthat Watermarke Properties bought the project. "There is reallynothing else like it" in the market, he says, pointing out that theproperty is in the heart of Downtown, close to venues like StaplesCenter and L.A. Live, and across the street from a Ralphssupermarket, the only one in Downtown L.A. In addition to itscondo-quality construction and a long list of amenities, DiLellosays the apartment tower offers "views that you have to see toappreciate." He estimates 12 to 18 months for the lease-up, whichis being managed by Riverstone Residential.