Interstate Equities Corporation (IEC) has acquired a 400-unit multifamily asset in Huntington Beach, California, US for $134m (€112.3m).
The institutional fund manager said it bought Surf at 39 on behalf of its IEC Institutional Fund III, a $200m fund which targets value-add multifamily investments throughout coastal California.
Marshall Boyd, the co-president and chief investment officer of IEC, said: “Our investors’ have given us the power of discretionary capital, so when opportunistic value-add properties present themselves we are in a position to move with conviction.
Surf at 39 will remain a workforce housing community, Boyd said, adding that “we are not moving the renovation spec to a Class A standard.
“Currently, around 80% of the units are in their original condition.
“The units are functional, but we will upgrade them in order to meet tenant needs, while retaining the property’s position as the best value for the dollar in its class,” Boyd said.
Originally constructed in 1972, Surf at 39 consists of varying floor-plans offering amenities, including two swimming pools with spas, a fully equipped business centre, a fitness facility, clubhouse, dog park and barbecue area.