Marina Cove Ltd, the longtime lease holder of King Harbor Marina, entered into a purchase agreement with Majestic KHM LLC to take over the lease.
REDONDO BEACH—King Harbor in Redondo Beach has a new leaseholder. Marina Cove Ltd (MCL) entered into a purchase agreement for Majestic KHM LLC to take over the lease for an undisclosed price. The Redondo Beach City Council approved the assignment of lease on Feb. 18.
“The assignment does not come with any requests at this time for any modifications to the master lease, so the master lease as its drafted today would just move over to the new ownership group,” Waterfront and Economic Development Director Stephen Proud said at the Feb. 18 City Council meeting.
About 13 years remain on the master lease before it can be renegotiated with the city.
The lease includes the 820 slips within King Harbor Marina; the property fronting Harbor Drive between Yacht Club Way and Marina Way comprised of the boatyard, retail shops, the Bay Club, offices and apartment units; the property and parking area associated with the Bluewater Grill; the property and parking associated with the King Harbor Yacht Club; and, the parking and marina related facilities that run the length of Mole B.
“This is the largest lease, I think, in the entire harbor,” Mayor Bill Brand said at the Feb. 18 City Council meeting.
Proud said the council generally has no control over a lease sale, outside of determining if the person to whom the lease or the entity to whom the lease is being assigned has the financial and operational capacity to carry forward the agreed upon obligations.
The city utilized the services of Kosmont Associates to conduct an extensive due diligence review of Majestic, Proud stated in an administrative report to the City Council. The report said results indicate that Majestic has the financial and management capacity to assume the obligations of the lease.
Majestic is a limited liability corporation managed by Kobe Group. Dr. Allen Ginsburg is the president of Kobe Group and is also the leaseholder of the Crystal Cove Apartments and Chart House restaurant.
“We wish Dr. Ginsburg and his team every success and we encourage him to support the many community groups that will depend on him for continued growth,” said MCL President, Maryann Carroll-Guthrie at the Feb. 18 meeting.
MCL held the lease for King Harbor Marina for approximately 50 years. MCL is owned by the Guthrie family, who was praised by the public and council members at the Feb. 18 meeting.
“When I think of King Harbor I think of the Guthries,” Brand said.
“The name Guthrie is synonymous with the harbor so I think even as you go off into your sunset that legacy still carries on,” Council Member Christian Horvath said.