Phoenix, Arizona, based-Alliance Residential has acquired Coronado Bay Club, a 549-unit apartment community located on the waterfront in Coronado, California, for approximately $160 million. Alliance purchased the property from LaSalle Investment Management in partnership with an unnamed institutional investor, which data provider Real Capital Analytics (RCA) lists as Prudential Real Estate Investors. Jones Lang LaSalle represented the seller and MetLife provided $121.5 million in financing.
The sale is expected to be one of the largest multifamily deals on the California coast this year, according Jones Lang LaSalle. Situated on a 14-acre site at 1515 Second Street, Coronado Bay Club features an 18,000-square-foot clubhouse as well as meeting rooms, a business center, an on-site beauty salon and a fitness center, among other amenities. The transaction for the 95 percent leased property also includes development rights for 22 townhouses.
“This is a very unique, very special property — possibly the largest oceanfront rental community in Southern California,” said Drew Colquitt, Alliance’s managing director for acquisition, in a statement. “We have a strategic vision that, once executed, will leverage this asset’s existing strengths while significantly enhancing its long-term value.”
The transaction is not the first joint venture for Alliance and Prudential. Previously, Alliance partnered with the insurer’s international real estate arm Pramerica in the acquisition of Broadstone North Central, a 225-unit residential property in Phoenix, for Pramerica’s US Value Property Fund V. According to RCA, the Coronado Bay Club deal is among the largest Alliance has done, as the firm usually targets transactions in the $10 million to $50 million range.
In 2008, Alliance participated in Hawkeye Partners’ emerging manager program along with Meadow Partners, Garrison Investment Group and Panattoni Development Company. Hawkeye invested in the budding real estate firms with the $700 million in equity it raised for Scout Fund I. Now, Alliance’s third-party multifamily management portfolio has grown to exceed $6 billion and spans over 15 states and 24 major markets.