LOS ANGELES, September 8, 2026 – This is the first time in more than two decades that a premier waterfront property in Los Angeles County has changed hands.
The Promenade, an ensemble of 101 units located at 4333 Admiralty Way, was sold by Essex Property Trust. Public records confirm the leasehold interest was purchased by Coastline Real Estate Advisors Inc. for $24.8 million.
Why did a coastal property in Southern California fetch this exact price? Here’s how it looks from under the surface – the asset isn’t owned outright; it’s tied to a ground lease with Los Angeles County that expires in 2067.
This makes for interesting numbers. Essex paid $28.2 million for the property way back in 2004 and pounded another $36.4 million into capital improvements, SEC filings show. Selling that same asset for $24.8 million looks like a massive loss on paper. Yet accounting in the realm of ground leases can be quite tricky.
The Promenade is located within the larger Marina City Club development, a three-building complex featuring 600 condominium units. Amenities include a half-mile waterfront promenade, swimming pools, sports facilities, and a huge marina facility complete with 303 boat slips and 30,000 square feet of commercial space. The units are large, averaging about 1,240 square feet in size for two- and three-bedroom floor plans.
And occupancy wasn’t an issue. Occupancy for this property had remained comfortably at 96 percent up until late 2025.
What happened instead is a part of a trend of portfolio restructuring throughout the market region. During the twelve months ending June 2026, metro Los Angeles saw a 35.2 percent surge in multifamily deal volume, hitting $9.3 billion. However, prices dropped nearly 14 percent per unit from their 2022 peak.
Brokerage of such a property on a ground lease involves a lot of heavy lifting, but the team of brokers from Matthews, which includes Executive Vice Presidents Stew Weston and Rosie Cooper, did succeed in representing both parties to close the deal.
Coastline gains a stabilized asset, with high occupancy rates and in a waterfront location in Marina del Rey, which guarantees steady cash flow in a supply-scarce market. For Essex, shedding an aging ground lease frees up capital as regional cap rates shift. “Assets like The Promenade rarely come to market; waterfront multifamily with a private marina of this scale is essentially irreplaceable in Los Angeles County,” noted Stew Weston of Matthews. Brokers expect older ground leases to rotate to buyers willing to ride out the term while REITs pivot toward cleaner, fee-simple plays.
