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Land's End Apartments Fetch $44M

PACIFICA, CA-The 260-unit complex sits on a bluff above the Pacific Ocean and provides direct beach access. The new owner plans to invest an additional $5 million renovating the property, which is about 97% occupied.

By Brian K. Miller | Updated on July 10, 2005

(To read more on the multifamily market, click here.)

PACIFICA, CA-Pacific Properties of Palo Alto has sold the 260-unit Land’s End Apartments here for $44 million, according to public records. The 260-unit complex sits on a bluff above the Pacific Ocean, has direct beach access and is about 97% occupied. The new owner is a joint venture of American Realty Advisors of Glendale and Fowler Property Acquisitions LLC. The JV plans to invest upward of $5 million in a complete renovation of the property.Completed in 1979, Land’s End consists of 11 two- and three-story buildings and is the only large beachfront property between Marin and Santa Cruz. About half of the units have ocean views. Nearby major employers include Genentech, Inc., Oracle, the San Francisco International Airport, United Airlines Maintenance Division and Gap, Inc. Pacific Properties paid about $30 million for the property in 1999. The brokers in both acquisitions and this sale were Stan Jones, Bruce Herrmann and Phil Saglimbeni of Marcus & Millichap. Jones tells GlobeSt.com that the transaction included a multimillion penalty for early payment of the over-market first mortgage loan on the property. ARA acquired the property on behalf of one of its value-added commingled funds. An ARA spokesperson declined to confirm the total purchase price. Kirk Helgeson, whom the spokesperson says was at the forefront of the deal, could not be reached for comment. In a prepared statement, ARA CEO Stanley Iezman says the city’s average household income and the lack of affordable for-sale housing makes Land’s End “an exceedingly attractive asset.” In 2005, the average family household income in Pacifica within a one-mile radius of Land’s End is $104,882, the highest median household income among the San Francisco and San Mateo regions, according to Claritas. The median home value within a one-mile radius is $528,339.

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