Colliers’ multifamily team recently executed a $25 million all-cash transaction of a classic Mid-Century Modern apartment building located on Santa Monica’s Ocean Avenue, one of the most sought after areas in the state. The 35,875-square-foot structure situated on .34-acres sold for $1,190,476 per unit and $697 per square foot. Colliers’ Executive Vice President, Kitty Wallace, and her team represented both the seller, 1025 Ocean Avenue LLC, and the buyer, OW-Aberdeen Alaska St. Owner, LLC.
“When rare opportunities present themselves in high-street locations like this, there is never a shortage of buyers. The challenge for us was finding a cash buyer who could perform under extreme time constraints to accommodate the seller’s time,” said Wallace. “We are pleased to share that both parties profited from this transaction. Our team was able to negotiate an all in cash offer and $1 million non-refundable deposit from the buyer and fourteen day due diligence and eight day close for the seller.”
Perched atop the bluffs of Palisades Park, 1025 Ocean Avenue comprises 20+1 units wrapped around a central courtyard on approximately 15,000 square feet of prime oceanfront real estate. The building’s amenities include floor to ceiling oceanfront views, a rooftop pool and lounge area, gated subterranean parking and expansive private balconies. The property sits in one of the most coveted multi-family rental markets in the country and is walking distance to Santa Monica’s world renowned beaches, Third Street Promenade and sits at the core of Silicon Beach’s employment hub.
“A prime beachfront location, one of the most iconic in the world, and a high barrier coupled with limited resources for entry make 1025 Ocean Avenue a crown jewel in Santa Monica’s rental market,” added Wallace. “In our representing of this property, we piqued the interest of a national player and one of the area’s most prominent developers. Our expertise in the market allowed us to leverage both our national and local position to bring this sales to fruition.
Originally built in 1961 by entertainer-turned-developer, Lawrence Welk, the property has been pridefully maintained and remains a stalwart beacon of luxury living along Ocean Avenue. Rents in place are currently well below market, offering the new owner opportunity to achieve 102% upside, Wallace estimated. Nine of the units come meticulously updated with top-of-the-line finishes by previous ownership. Plans are in place for future renovations of the remaining units.
Submitted by Shelly Levin
