Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced today the sale of Pico Lanai Apartments, a 174-unit apartment complex in Santa Monica, California. The property sold for $58,550,000, which equates to $336,494 per unit and $868 per square foot.
“Pico Lanai is one of only 15 assets greater than 100 units in this submarket and just one other 100-plus-unit multifamily property has sold here in the last five years,” said Kevin Green, IPA senior managing director. “Originally constructed in 1960 on 2.8 acres, the property has the second-largest land parcel of any existing multifamily building in Santa Monica.”
IPA’s Green, Greg Harris, executive managing director, and Joseph Grabiec, senior managing director, represented the seller, Raintree Partners. The buyer is Pacific Reach Properties. “Santa Monica is one of the most affluent communities in the country and has some of the strongest demographics in all of Los Angeles,” added Grabiec. “Current annual average household income in Santa Monica is $134,433; 41 percent higher than Los Angeles County’s average and population growth in Santa Monica is expected to be almost three times the county’s over the next five years.”
Pico Lanai is two miles from the beach and within a one-mile radius of more than 10 million square feet of office space in the Silicon Beach tech hub. Residents of the property can walk to several of Santa Monica’s premier employers, including Riot Games, Amazon Studios, Hulu, Lionsgate, and Viacom. The 26th St./Bergamot station of the Metro Expo Line, which connects riders from Downtown Santa Monica to Downtown Los Angeles in 45 minutes, is less than a 15-minute walk away.
“Pico Lanai can be repositioned to cater to high-income earning, tech-savvy millennials who will gravitate towards a unique living experience, where they can live, work, and play,” commented Harris.