Forty55 Lofts Bought for $46M

MARINA DEL REY, CA-Forty55 Lofts, a new 140-unit luxury residential development in this affluent beach community sold last month for $46 million or $328,571 per unit, according to a quarterly report filed this week by one of the new owners, Behringer Harvard Multifamily REIT I. Behringer Harvard revealed the JV acquisition with PGGM Private Real Estate Fund in early October but declined to provide the purchase price at that time. The asking price was $70 million or $500,000 per unit, according to an investment flyer.

Formerly a condominium development, Forty55 Lofts was acquired vacant by the JV from Standard Pacific Homes and is now an apartment property being marketed for lease. The development sits on 2.6 acres site at 4055 Redwood Ave. and consists of two-four-story buildings around a resort-style pool area with barbecues, a fire pit, and a decorative water feature. Residents also have immediate access to a 22-mile bike path running from Malibu to Redondo Beach. The units average 1,306 square feet and have 10- to 20-foot ceilings, oversized windows, large patios and high-end kitchens.

In its quarterly report, the REIT says it put up 55% of the cash ($25.8 million) and PGGM, a real estate investment vehicle for real large Dutch pension funds, put up the remainder. The REIT says it also paid Alliance Realty Partners LLC a finder’s fee of approximately $921,000.