SAN PEDRO, CA-The buyer of a 68-unit complex here plans tooperate the property as apartments after acquiring it from aprevious owner who planned to demolish the building and constructcondos, according to Hendricks & Partners broker BrentSprenkle, who arranged the sale. Sprenkle, who describes thetransaction as "semi-distressed" and "challenging," says: "Mostbuyers were discouraged by the sheer volume of work required torehab 50+ units. The buildings were of C quality (all small onebedrooms or efficiencies that didn't have kitchens)." Nonetheless,the property generated 21 offers, most of them from individuals orsyndicators.


Beacon Harbor View LLC, a Los Angeles-based owner with aportfolio of approximately 3,000 units, bought the property fromCSS Realty, also based in Los Angeles. The complex consists of 44one-bedroom and 24 efficiency units in six detached propertiesfronting on 12th Street, Palos Verdes Street and Beacon Street at123 W. 12th St., 1217 S. Beacon St. and 1222 S. Palos Verdes. Theunits on Beacon Street are located in a bluff overlooking theharbor.


Sprenkle tells that the loan was due and had to bepaid off and, because of occupancy issues, with only 17 of the 68units occupied, it could not be refinanced. The seller waspreviously planning to demolish the property to build condominiums,but when the economy turned, that was no longer an option.


The buyer paid $3.225 million, obtaining a short-term loan fromPacific Western Bank for $2.418 million.

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