Condo-Entitled Complex Trades for $62M
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The property has 68 units ranging in size from 1,577 square feet to 2,323 square feet.
MALIBU, CA—San Francisco-based Pacific Eagle has purchased the Villa Malibu from the Carlyle Group for $62 million. The 68-unit luxury multifamily complex on the ocean in Malibu, CA, is entitled for condo conversion. As a result, the property attracted healthy investor interest and eventually sold at a record-breaking low cap rate.
“The property was sold at one of the best cap rates in L.A. County,” Bob Safai, a broker at Madison Partners, tells GlobeSt.com. “It was sold at just under a 3% cap rate, so it was really aggressive. We had a dozen offers on the property and 40 tours. It is a very unique asset, and it is something that doesn’t come to the market very often so investors really try to snatch up these things when they can.”
The seller disposed of the asset to take advantage of the peak market conditions. On 10 coastal acres, the property was originally built in 1993 and was fully renovated in 2007. It has a mix of two- and three-bedroom apartments, ranging in size from 1,577 square feet to 2,232 square feet. It is also fully amenitized with a fitness center, two tennis courts, basketball court, swimming pool with cabanas and a dog park. “This is purely a beautiful resort-type apartment community,” says Safai. While the property is entitled for condo conversion, Safai doesn’t know if the buyers plan to use that strategy…
