Avalon Bay Pays $24M for 105 Units

The REIT bought the property from Los Angeles-based RW Selby & Co. Inc., which specializes in multifamily investment, development and management. The transaction was brokered by Mary Ann King and Scott Davis of the Costa Mesa office of Chicago-based Moran & Co.Sean J. Breslin, VP of Investments for Avalon Bay, says the REIT was attracted to the property by its location directly across the street from the beach and just south of the Redondo Beach Pier and King Harbor, along with the strong South Bay apartment market, where what Breslin describes as "severe supply constraints" bode well for long-term rent growth. No institutional quality apartments have been built here for more than 30 years, Breslin points out, adding that the sharp increase in defense spending is creating many new, high-paying jobs in the area, which is populated by such firms as Boeing, Raytheon, Lockheed and Northrop Grumman.Avalon at Redondo Beach, which was built in 1971 and was 90% occupied at the time of the sale, comprises three buildings of wood frame and stucco construction that feature one- and two- bedroom apartments as well as studios. The units range in size from 550 sf to 1,350 sf and rent for $1,285 to $2,500. Selby recently completed a renovation of the property, creating a leasing center and remodeling the fitness center at the complex. The new asset is part of an AvalonBay portfolio that includes ownership interests in 148 properties comprising 42,880 apartment units, including 17 complexes in Southern California.