Novella Redondo image via apartments.com, copyright VHT Studios
Written by The Business Journal Staff
A Clovis-based real estate investment group announced the purchase of a Redondo Beach apartment building for $53.5 million.
IDEAL Capital Group purchased the 82,203 square-foot, 105-unit Novella Apartments in the South Bay region of Los Angeles.
Located at 616 Esplanade St., the property experienced extensive water damage during a storm in October 2018, causing significant water damage and resulting 80-percent vacancy. The building, which had undergone a previous $16 million renovation, received a full roof replacement and common area waterproofing upgrades following the storm.
“This was a unique situation and opportunity for the buyer since it provides them with a blank canvas to create a premier residential community in Redondo Beach,” said Dean Zander, a broker from CBRE who represented the seller in the transaction. “The tremendous location and nearly-vacated shell gave investors an opportunity to create the ultimate boutique coastal apartment community in an amazing beach locale with almost no deliveries in the past 35 years, and only one development project in the pipeline.”
Novella Redondo is just steps from the beach, with ocean views from approximately 40% of the units.
“Situated along the South Bay coastline and adjacent to some of Southern California’s most prestigious employment hubs, Novella benefits from a location that is simply irreplaceable,” said Austin Herzog, president of IDEAL Capital Group. “We plan on completely repositioning Novella through a total rehabilitation and rebranding plan, enhancing the pool area, clubhouse, gym, common lounge areas, and remodeling all units with stylish premium finishes, transforming Novella into an exclusive residential community.”
The seller, Stockbridge Capital Group, was represented by CBRE’s Zander, Stewart Weston, and John Montakab.
With the acquisition of Novella Apartments, IDEAL Capital Group has completed more than $100 million in acquisitions this year. Since July 2017, IDEAL Capital Group has acquired 1,142 units throughout Northern, Central, and Southern California, representing more than $225 million in development volume.
Its most recent announced acquisition was a San Diego apartment building for $46.6 million.