Capri, Kennedy Wilson Buy LA Apartment-Marina for $225M
- Jul 01, 2013
Capri Capital Partners L.L.C., of Chicago, and Kennedy Wilson, of Beverly Hills, Calif., have acquired the leasehold interest in Esprit, a 437-unit luxury multi-family project that also includes a 227-slip marina, in the Marina del Rey area of Los Angeles, the two companies announced Friday. The purchase, which closed on Thursday and which Capri made on behalf of an institutional investor, was for $225 million.
The five-building, 18-acre apartment complex comprises studios and one-, two-, three- and four-bedroom units, all of which feature water views, washers and dryers, 9-foot vaulted ceilings, and private patios. The units are mostly split-level townhouse layouts with walk-in closets and stainless-steel kitchen appliances. A pedestrian promenade runs alongside the waterfront directly in front of the apartment complex.
The Esprit anchorage facility provides full utility packages, separate storage and water activity centers for guest use. The 227 boat slips range from 35 to 75 feet.
Capri and Kennedy Wilson intend to immediately embark on a $5.3 million series of upgrades to the apartment portion, including reconfiguring the new leasing center, improving resident facilities, enhancing the landscaping and upgrading unit interiors.
“Esprit is considered the finest multi-family mixed-use property in Marina del Rey, and an off-market transaction to acquire a property of this size and quality is very rare,” Kurt Zech, president of Kennedy Wilson Multifamily Management Group, said in a statement. “The property was stabilized at 94 percent occupancy in late 2012 after a lengthy three year lease-up period and still has plenty of upside for rental growth in a steadily improving economy.”
Brian Eisendrath and Troy Tegeler of CBRE facilitated financing for the transaction with Fannie Mae.
The seller was Esprit One L.L.C., an entity owned and controlled by a partnership led by Cindy Miscikowski, a spokesperson for the buyers told Commercial Property Executive.
The property’s land is owned by the County of Los Angeles, and Capri and Kennedy Wilson assumed the land lease, which runs till 2061, according to the spokesperson.
According to the Esprit Apartments website, the community is managed by E&S Ring Management Corp., of Los Angeles.
The multi-family vacancy rate in the Santa Monica/Marina del Rey submarket is about 3.5 percent, according to Marcus & Millichap, and although 1,150 units are now under construction there, the vacancy rate is not expected to rise substantially.
The investment market in the Westside Cities area of Los Angeles is, like that in L.A. as a whole, strong and focused on smaller properties, with first-time buyers particularly active, also according to Marcus & Millichap.