Alliance Residential to Reposition West Coast Oceanfront Property it Acquired
- May 17, 2010
Rancho Palos Verdes, Calif.— Alliance Residential Company makes its fourth West Coast multifamily acquisition since mid-2009 with the purchase of The Madison. This 90-unit apartment community is located on the Palos Verdes Peninsula in the affluent coastal community of Rancho Palos Verdes, an oceanside suburb of Los Angeles.
“The Madison deal was closed quickly on an all-cash basis following a short due diligence period,” says Managing Director, Southern California, Drew Colquitt. “Given the unique ocean view location and significant constraints to building any new properties in the area, coupled with area incomes of over $115,000 per household, we believe this to be a strong investment for an aggressive capital improvement and repositioning program.”
The Madison is located on the cliffs overlooking the Pacific Ocean in the Southbay submarket of Los Angeles County. More than 50 percent of its units provide 180-degree ocean views. The asset was originally built in the early 1970’s and is located on Hawthorne Boulevard and Ocean Crest Drive.
Alliance intends to perform significant cosmetic renovations to position the property at the top of the Rancho Palos Verdes submarket with high end finishes such as stainless steel appliances, wood plank style flooring, etc. Each apartment home offers an above-average size balcony or deck and will include a full-size washer and dryer. The two common area pool courtyards will be upgraded with new boutique hotel quality furnishings and finishes.
Berkshire Property Advisors partnered with Alliance on this transaction, bringing their substantial redevelopment experience and management resources to the team to support the implementation of the repositioning strategy. “We are very pleased to have a financial partner that is experienced in, and understands the challenges and rewards associated with performing an extensive capital plan on a uniquely located property,” says Alliance’s CFO Jay Hiemenz.