MARINA DEL REY, CA—American Realty Advisors haspurchased the Millennium del Rey fromDinerstein for an undisclosed amount, GlobeSt.comreports exclusively. The 196-unit apartment complex isLEED-Gold certified and has smart home technology,which has helped to attract tenants from the area's surroundingtech and media employers.

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Dinerstein completed construction of the apartment complex inApril of this year, but waited to bring it to market until theproperty was well occupied. “We didn't market the property forseveral months after it opened to give it some time to mature,”Thomas P. Moran, a broker with Moran &Co. who represented the seller in the transaction, tellsGlobeSt.com. “In most properties, you try to mature the rents orcreate transparency, so if you are a potential buyer, you canclearly see what the rents are going to be.” At the time of sale,the property was 85% to 90% leased and garnered rents at $3 persquare foot.

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The sale generated “a lot” of interest, according to Moran, fromboth private and institutional investors. “Most of the core marketsin L.A. are on everyone's wish list to buy, so you can imagine thatputting out a brand new core deal in Marina del Rey is going togarnish a lot of interest,” he says. “This is where you get all ofthe big core funds.” Moran declined to comment on the number ofoffers they received on the property.

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In addition to price, this particular buyer was a strongcontender because of its knowledge of the submarket. “This buyer isvery unique and understood the market very well,” says Moran. “ARAis a pension fund advisor and previously was on the board ofPlaya Vista, so they really understand thisneighborhood and have been involved with it over the years. Theyreally had a deep knowledge of home sale and apartments, andobviously whatever is happening over in Playa in general. Theyreally believe in the neighborhood and want this property as along-term hold.”

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Understanding the neighborhood was important because it ischanging so quickly with constant news of new employers anddevelopers finding opportunities in the area. “The neighborhood ismaturing very nicely,” says Moran, noting the new Runway mixed-use development under construction inPlaya Vista, which brings a live/work/play aspect to theneighborhood. However, he says the most part of the submarket'sstory is the job growth in the area. “This particular part of L.A.has had the most office absorption. In 2013, itabsorbed about 400,000 square feet of office space. Right now in2014, the submarket will do the exact same thing, possiblymore.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.