Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced the sale of Rolling Hills Apartment Homes, a 107-unit apartment complex in Torrance, California. The property sold for $49,525,000, which equates to $462,850 per unit.
“Placed on the market for the first time by its longtime owner, the asset gives the buyer a sizeable footprint in Torrance and the opportunity to capitalize on future growth in a prime pocket of the South Bay,” said Tyler Leeson, executive managing director investments in Marcus & Millichap’s Orange County office. “The submarket has a strong employment base, excellent demographics, and a hot single-family housing market that is leading to an ever-increasing affordability gap between renting and homeownership.” Leeson and Marcus & Millichap’s Kevin King, Nick Kazemi, and Matthew Kipp, in conjunction with Institutional Property Advisors’ Joseph Grabiec, Kevin Green and Greg Harris represented the seller, a private investor, and procured the buyer, also a private investor.
“The neighborhoods surrounding Rolling Hills Apartment Homes contain single-family homes that have a median price of $2.6 million,” added Grabiec. “The South Bay has a limited multifamily development pipeline and an aged apartment stock that is primarily composed of buildings that are older than Rolling Hills Apartment Homes.”
Built in 1970 on two acres, the property is surrounded by affluent residential neighborhoods. The community is easily accessible from U.S. Route 1 and Crenshaw Boulevard. Residents can walk to the Ralphs-anchored Country Hills Shopping Center and the South Coast Botanic Garden. The Pacific Ocean in Redondo Beach is four miles away.
“There is strong demand for luxury apartment homes in Rolling Hills Estates and Rolling Hills Apartment Homes’ infrastructure provides the potential to expand upon and deliver some of the highest quality amenities in the submarket,” said King. The property’s unit mix is 59 one-bedroom apartments, 30 two-bedroom units, and 18 three-bedroom apartments. The average unit size is 930 square feet. Community amenities include controlled access, covered parking, a clubhouse, pool and spa.