MARINA DEL REY, CA-Denver-based UDR Inc. has closed on itspurchase of Marina Pointe, a four-story, 583-unit multifamilycommunity that was built in 1993 for $157.5 million. In contrast tomany of the properties in Marina del Rey, Marina Pointe is not on aground lease.

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Brett Betzler, a broker in Moran & Co.’s California office,and Mary Ann King, president of Moran & Co., represented theseller in the transaction. Although Betzler could not disclose theidentity of the seller except to say that it is “an institutionalowner,” an unidentified source tells GlobeSt.com that the sellerwas a JV between BlackRock Realty and CalPERS. GlobeSt.com alsolearns that the prior sale of the property was in 2002 for $117.2million.

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Betzler tells GlobeSt.com that the property, located at 13603Marina Pointe Dr., is “in a great location and gets greatvisibility,” which he says was one of the attractions for UDR, whoowns two other properties in the area. He adds that the property iswalking distance from the marina and across the street from a hugeretail center with a Gelsons, Vons, and a number ofrestaurants.

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Betzler points out that “the buyer assumed $67.7 million invariable-rate tax exempt bond financing, which had an interest rateof only 1.20% at the time of sale.” He adds that “This outstandingfinancing, along with a clear value-add opportunity evidenced by$180 rent premiums on over 100 units the seller had alreadyrenovated, significantly enhanced the value of the asset”

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Many properties in Marina del Rey are on a ground lease, butBetzler tells GlobeSt.com that this one is not. “It’s better,” hesays. “A ground lease isn’t necessarily a bad thing, but it dependson how it is written.” As for reasons for selling, although Betzlercouldn’t really disclose specifics, he says that “the seller soldbecause cap rates have come down and this is the best environmentwe have seen in at least two years.”

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King says that “With the sale of Marina Pointe, Moran & Co.has now completed 10 institutional sales in the Marina del Reyarea, comprising over 3,700 units, and totaling $854 million sincethe year 2000.”

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Average unit size at Marina Pointe is 853 square feet. Thepurchase is part of the multifamily REIT’s previously reportedacquisition of five operating communities as well as one pre-saleventure for $455.1million.

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In addition for Marina Pointe, the communities include: 1818Platinum Triangle in Anaheim, CA for $70 million; Garrison Squarein Boston for $98 million; Ridge at Blue Hills in Braintree, MA for$40 million; Domain Brewers Hill in Baltimore; and the pre-saleventure is Lodge at Stoughton in Stoughton, MA for $43.1 million.The pre-sale venture was with an affiliate of the Hanover Co. todevelop a 240-home community built to the same quality and amenityspecifications as other recently acquired Hanover communities.Lodge at Stoughton will be well located and served by the “T”commuter rail station located 3.4 miles to the southwest and willfeature immediate highway access to Route 24, the second largestindustrial arterial serving the Boston area, according to aprepared statement.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.