SSR Buys $28M Marina Complex

Mary Ann King and Scott Davis of the Costa Mesa office of Chicago-based Moran & Co., who brokered the sale on behalf of seller Atlanta-based Trammell Crow Residential, report that the buyer was the Tower Fund. King and Davis also brokered Playa Capital's recent $124.5-million sale of the 705-unit Fountain Park Apartments at Lincoln and Jefferson boulevards to Essex Property Trust.

Scott McCarter, director of acquisitions for SSR Realty Advisors, describes the Alexan Fontaine complex as "a luxury property with great upside potential because of its location in an area of Marina del Rey that is transitioning from mostly creative office and light industrial uses to residential." As other buildings in the neighborhood are redeveloped as high-end residential properties, SSR expects property values to increase.

According to King, this conversion process has already started. A 96-unit apartment development is already under construction directly across the street from Alexan Fontaine, which is only going to add to the attractiveness of this neighborhood, she says.

Alexan Fontaine was developed by Trammell Crow Residential in partnership with AIG Global Real Estate Investment Corp. and opened in July of 2003. Its amenities include granite kitchen countertops, ceramic tile flooring in kitchens and baths, built-in computer desks and gas fireplaces. The property also includes 26 penthouse loft units. Its 102 apartments are situated on a 1.9-acre site, a density of 54 units per acre. The property consists of two, four-story courtyard buildings separated by a five-floor, gated parking structure, which allows residents to park on the same level as their apartments. The property also features a 1,828-sf lounge and a leasing center, a fitness center, and a business center with conference table. It includes a mix of traditional and penthouse units, ranging in size from 603 to 1,431 sf. At closing, the property was 70% occupied at an average rent of $2,242 per month.

The Playa Vista project that Alexan Fontaine is part of has been under construction since 2000. It is slated for up to 3.8 million sf of office space, 185,000 sf of retail space, and 5,846 homes, as well as numerous parks and community facilities.

Buyer SSR Realty Advisors Inc. is a subsidiary of MetLife. Based in Morristown, NJ, SSR provides real estate investment management advisory services to pension plan sponsors and other institutional investors.