JV Buys Westside Units; Deal Marks Pair's Fourth Acquisition This Year

LOS ANGELES–Hanover Financial Co. and Kennedy-Wilson International have bought a 292-unit apartment complex in Playa del Rey, marking the fourth acquisition the pair has made under a $200-million joint-venture agreement reached earlier this year.

The apartment complex stands at 7600 Manchester Blvd. It was purchased by 7600 Manchester LLC, an entity formed by LA-based Hanover and Beverly Hills-based Kennedy-Wilson.

The seller is Playa Holdings Inc. LLP, a group of local private investors. Mark Macedo, Hanover’s managing director, says a renovation of both the exterior and interior of the property will begin immediately and that the complex will be renamed Club de la Playa.

“The apartment complex is in a great infill location, and its rents are as much as 30% under market,” Macedo tells GlobeSt.com. He adds that the location and opportunity to raise rents—-combined with a Westside vacancy factor below 5%–”made this property very attractive.”

Hanover Financial is a wholly owned subsidiary of Marcus & Millichap Co., the real estate services giant based in Palo Alto, CA. It provides joint-venture equity capital for the acquisition, repositioning and development of commercial and multifamily properties. Kennedy-Wilson is a diversified real estate services company based in Beverly Hills.

Mary Friedman of Diversified Investment Brokerage in Los Angeles represented all parties in the transaction.