Storm-Damaged South Bay Community Changes Hands
- May 20, 2019
A joint venture between IDEAL Capital Group and Aegon Real Assets US has acquired Novella Redondo, a 105-unit community located in Redondo Beach, Calif. According to Yardi Matrix data, seller Stockbridge Capital Group purchased the asset in 2015 for $50.8 million.
The new owner is set to carry out extensive renovations and upgrades to unit interiors and common areas due to the property experiencing extensive water damage during October 2018 storms, causing significant water intrusion which eventually resulted in 80 percent vacancy. Built in 1971, the asset was completely renovated in 2013 and received a full roof replacement and common-area waterproofing upgrades following the storm.
Located at 616 Esplanade St., Novella Redondo is very close to the beach and approximately 40 percent of the units offer ocean views. Nearby Pacific Coast Highway offers a variety of retail and dining establishments. The 82,203 square-foot asset includes studio, one- and two-bedroom units ranging from 552 to 1,142 square feet. Common-area amenities include two laundry facilities, a dog wash station and subterranean parking.
CBRE’s Dean Zander, Stewart Weston, and John Montakab represented the seller in the transaction. Earlier this year, Stockbridge Capital Group invested $130 million of equity into a 420-unit multifamily project in San Francisco.