Colony Capital buys LA high-rise for $305 million

May 1, 2005

The Los Angeles private equity real estate firm will invest approximately $340 million to acquire and refurbish the 18-story, 450-unit Water Terrace building in Marina del Rey, CA.

Los Angeles-based real estate private equity firm Colony Capital announced today the purchase of an 18-story waterfront apartment tower, Water Terrace, from Equity Residential for $305 million. The sale is expected to close later this month.

The quick start to the new year indicates that Colony is poised to carry its momentum from last year into 2005. In September 2004, the investment firm announced the purchase of four casino hotels from Harrah's Entertainment and Caesars Entertainment for $1.2 billion, a deal which is expected to close this year. A few months earlier, Colony completed its $280 million purchase of the Las Vegas Hilton and in April, the firm, along with co-investor The Blackstone Group, sold the Savoy Group of London, a hotel consortium, for $1.4 billion.

In addition to Water Terrace, Colony has been involved with other high-end apartment buildings including the Costa Smeralda in Sardinia, Italy and the recent conversion of New York's Mayfair Hotel to condominiums.