MARINA DEL REY, CA – National multifamily developer, The Dinerstein Companies, has sold The Millennium Del Rey, a 196-unit luxury apartment community in Marina Del Rey, CA to American Realty Advisors. Thomas P. Moran of Moran & Company’s California office represented the seller in the transaction. The sale closed on October 7th, 2014.
Brian Dinerstein, Partner and President at The Dinerstein Companies, explains that, “finding an opportunity in the Marina Del Rey-Silicon Beach market is on the wish list of every core investor in the country. While considered to have limitless potential, the submarket also has a reputation for being an extremely difficult place to complete multifamily entitlements.
Fortunately, we were able to leverage our development experience in Southern California, and rely on our local team that had the expertise necessary to successfully complete the entitlement process. Once we started work on the project, we realized that, while the demand drivers for rental living were in place, we had to incorporate the right balance of high-end design, luxury, and technology with a discerning renter in mind. I’m glad to say that we were able to realize our vision and create the ideal apartment community for Silicon Beach.”
Gary Steinhart, Director of Investments at American Realty Advisors, says, “as an investor in the nearby Playa Vista project for the past 10-years, we became very familiar with the Marina Del Rey-Playa Vista submarket, and saw demand for apartment living continue to rise as neighborhood amenities and employment expanded. Long-term, we believe that demand for modern luxury living in the area will continue to grow.” Steinhart adds, “with limited opportunities in the market, we’re fortunate to have acquired a high-end, well-amenitized product that will meet the demands of young professionals and help us realize our investment strategy.”
The Millennium Del Rey is a luxury-style apartment community located in Marina Del Rey, CA and situated in the heart of Silicon Beach, Southern California’s hottest tech and media start-up mecca. This LEED Gold Certified (pending) property consists of 196 units and was completed in June 2014. Built for the creative class, the apartment homes have features more typical of high-end for-sale product including innovations such as the “Monarch Tree” Smart-system, allowing residents to remotely control temperature and lighting, as well as built-in Apple TVs, all from their smart phones. The common areas also feature state-of-the-art amenities including poolside cabanas with outdoor TVs and iPod docking stations, an outdoor entertaining area with fire pits, a 24-hour fitness center with an outdoor yoga deck overlooking the pool area, a coffee bar, surf board storage, and a bike “kitchen.”
According to Tom Moran, “the fact that Millennium is a core deal developed by The Dinerstein Companies in a prime coastal location automatically garnered attention from both institutional and private core buyers. We were able to add value to the marketing process by helping multifamily buyers understand that current and future renter demand was being driven by the job growth story unfolding right across the street and in the immediate area.” Tom Moran explains that, “in 2013, over 400,000 sq. ft. of office space was absorbed in Marina Del Rey, and, annualized, 2014 office absorption looks to be as good as 2013, if not better, making it a top performer in West LA. When we took the deal to market, over 835,000 sq. ft. of brand new spec and creative office space was already under construction or available for lease and projected to bring up to 4,500 new employees in the area over the next several years. In addition, 800,000+ sq. ft. of office is currently being proposed for future development, which could generate another 4,000+ jobs. One of the most exciting development projects currently underway is the highly anticipated Runway at Playa Vista that will include 221,000 sq. ft. of retail, and will open this fall. With an increasing job base complemented by new walkable retail centers, including a Whole Foods market, we believe that the Marina Del Rey-Playa Vista growth story is just taking shape and American Realty Advisors will realize the benefits of that growth today and long-term.”
About American Realty Advisors
American is an investment manager to institutional investors and with over $6 billion in assets under management, has provided real estate investment management services for over 26 years utilizing core and value-added commingled funds and separate accounts. American acquires assets directly or provides equity, preferred equity, mezzanine debt, debt and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties.
About The Dinerstein Companies
Founded in 1955, The Dinerstein Companies is a family owned, fully integrated real estate company specializing in the development of core in-fill multifamily communities and private off-campus student housing. In 2014, The Dinerstein Companies was named the 9th largest multifamily developer in the nation by Multifamily Executive Magazine. Though nationwide in breadth, The Dinerstein Companies has had a strong presence in California since 2004.
About Moran & Company
Moran & Company (“Moran”) is the nation’s premier multifamily brokerage firm. It focuses all of its energies on multifamily assets and mixed-use assets with significant multifamily components. Led by nine regional partners, Moran’s brokerage team leverages its apartment and capital markets expertise with its extensive network of relationships to execute complex sale and capitalization assignments. While investment sales account for the majority of the Company’s transaction volume, Moran also assists owners with the sale of land entitled for the development of new apartment properties and assists developers in sourcing joint venture equity. Moran is often retained for its extensive experience with pre-sales or early sales as well.