Decron Properties Completes Year's Largest Sale of an Apartment Complex in Los Angeles That Will be Converted to Condominiums

By DANIEL MILLER - 9/4/2006
Los Angeles Business Journal Staff

Decron Properties Corp. and Equity Residential have completed the year’s largest sale of an apartment complex in Los Angeles that will be converted into condomiums.

The sale of the Playa Blanca Apartments in Playa del Rey closed on Aug. 31 with Chicago-based Equity paying $27.55 million for the 2-acre property owned by Decron, based in Los Angeles.

The all two-bedroom 80-unit property, located at 8300 Manitoba St., is four blocks from the beach – an attribute Equity valued greatly, said David Nagel, president of Decron.

“The building is within half a mile of the beach and Playa del Rey in general is a very attractive bedroom community,” Nagel said. “[Equity’s] focus is looking strictly at areas near the beach.”

Ron Harris of Marcus & Millichap Real Estate Investment Brokerage Co., who represented both the buyer and the seller in the transaction, said the deal is Equity’s first condominium conversion purchase in the Los Angeles market.

The property had a condominium tract map that was recorded in 1984 when the project was built, but prior to this time the units have been rented as apartments. The units sold for $344,375 per unit, or $347 per sellable square foot, Harris said.

“There was significant offer activity from many condo converters because of the property’s proximity to the beach, and because of the strong condo market that exists for prime West side property,” Harris said.

Nagel said Equity plans to move quickly with the conversion, and expects to have product for sale in 2007. The complex is currently occupied by rental tenants.