Rare Beachfront Complex Goes to Market

Ron Harris calls the Waterfront "a rare opportunity to acquire the only institutional-sized multifamily property in the Los Angeles MSA actually built on the sand," He tells GlobeSt.com, "Properties of this magnitude and location trade once a generation," adding that he expects significant interest in the property from institutions, private real estate investors and international capital.

Ron Harris explains to GlobeSt.com that the Waterfront is "irreplaceable" given its proximity to the Pacific Ocean and four-story height, neither of which could be duplicated under current Redondo Beach city zoning regulations and California Coastal Commission restrictions. The property features a retail component consisting of a 10,000-sf restaurant operated by the Chart House, a national beach-oriented seafood restaurant.

Built in 1969, the property features beach access and is within view of multi-million-dollar homes that line the coastline communities of Hermosa Beach and Manhattan Beach. Although the sellers spent approximately $4.5 million in common area and unit renovations, Harris describes "a tremendous amount of embedded value that can be captured by upgrading the recent renovations to a higher standard and by instituting more aggressive management."

The property is being taken to market unpriced, with no financing that needs to be assumed. The Bascom Group bought the complex about four years ago with San Francisco's Rockpoint Group as an equity partner. A GlobeSt.com report at the time said that Bascom paid $26 million for the property, which was built in 1968 and occupies a site of 3.7 acres.