“The acquisition of Pacific Court is highly compatible with Greystar’s strategy of acquiring high-quality assets where we can add operational improvements and renovation upside in submarkets like Long Beach, which is expected to see tremendous growth in population and values in the next few years as the downtown area continues to progress,” said Kevin Kaberna, Executive Director and leader of Greystar’s U.S. Investment platform. “We were able to purchase this property at a discount to both replacement cost and recent transactions in the area. We believe our proactive capital improvement strategy, which includes implementing institutional management, interior renovations and improving revenue and expenses, will allow us to deliver a desirable asset that capitalizes on the property’s incredible location.”
Pacific Court consists of 211 residential apartments, approximately 35,000 square feet of retail, and a 400-space subterranean parking garage, as well as on-site amenities including a fitness center, dog wash, business center, poker room and clubhouse. Greystar’s comprehensive value-add strategy will focus on renovating all 211 units and common areas of the asset. Unit updates to phase one units will be extensive, including the addition of hard surface counters, extended plank flooring, backsplashes, new cabinet doors, under-mount sinks, new plumbing and hardware, and fresh paint. For the lofts that were completed in 2016, light renovations will focus on upgrading backsplashes and hardware, and implementing room dividers for the studio lofts. The company will also refresh the common areas to enhance the ambience of the property.
Located in the heart of downtown Long Beach, Pacific Court boasts a “Walker’s Paradise” walk score of 98, in immediate proximity to a large number of lifestyle amenities, including restaurants, nightlife and shopping. The property is also located within walking distance of 3.7 million square feet of Class A office space, and just 1.2 miles from Alamitos Beach. In recent years, more than $8 billion has poured into the Long Beach real estate market via public and private projects, with more than 30 developments currently under construction. The rapidly-growing city is particularly popular among Millennials, with 53 percent of downtown residents under the age of 35, and offers residents the distinction of a coastal urban location at a relative discount – approximately 20 percent below the cost of other SoCal markets including Westside L.A., Orange County and San Diego.
As the nation’s largest apartment operator with 420,000 units under management, Greystar currently owns approximately 3,000 units and manages 13,300 more in the Los Angeles metro area. Greystar will continue to leverage its local market expertise and deep industry relationships to identify attractive investments and management opportunities throughout the Los Angeles area.
Greystar is a leading, fully integrated multifamily real estate company offering expertise in investment management, development and property management of rental housing properties globally. Headquartered in Charleston, South Carolina with offices throughout the United States, Europe, Latin America and Asia-Pacific, Greystar operates in over 130 markets globally and is the largest operator of apartments in the United States, managing over 420,000 units, with an aggregate estimated value of approximately $80 billion. Greystar also has a robust institutional investment management platform dedicated to managing capital on behalf of a global network of institutional investors with over $23 billion in gross assets under management including more than $8 billion of developments that have been completed or are underway. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world class service in the rental housing real estate business. To learn more about Greystar, visit www.greystar.com.
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