Prime Residential buys $275m multifamily portfolio along the Southern California coast

Prime Residential has purchased two adjacent multifamily assets located two blocks from the beach in Hermosa Beach, Calif. The assets are 285-unit Playa Pacifica and 169-unit The Gallery, which sold for $162.5 million and $112.5 million, respectively.

Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller, an unnamed institutional investor.

Joseph Grabiec, IPA senior managing director, said, “Hermosa Beach is one of the most affluent communities on the West Coast, and there have been no institutional-sized multifamily properties built here in the last 50 years. The average annual household income in Hermosa Beach is over $190,000 and more than 55 percent of the population lives in renter-occupied housing, which creates compelling demand for apartment homes.”

Located under a mile from the famous Hermosa Beach Pier, the properties’ location gives residents access to some of the world’s largest technology, entert