Developer granted lease for Neptune Marina project

LOS ANGELES — The planets aligned for Legacy Partners on Oct. 4 as the Los Angeles Board of Supervisors granted the development firm a lease interest for Marina del Rey’s Neptune Marina.

Supervisors approved the leasehold interest after Legacy Partners revealed its financing plan to redevelop Neptune Marina, which is located on the western half of Marina del Rey.

Prudential Investments agreed to become an equity partner on the project, while Bank of America will finance construction.

Greystar Development, which manages 410,000 rental units across the country, was dubbed as the project’s co-developer and guarantor.

The Neptune Marina redevelopment is expected to cost $302 million, with a majority of the financing – $166 million – coming from a Bank of America loan.

Prudential would provide $131 million in equity financing, while Legacy and Greystar committed to cover the remaining $5 million.

A representative from Legacy Partners informed supervisors late last year the Neptune Marina redevelopment could carry a price tag of $255 million.

Los Angeles County will be able to participate in the sale proceeds, according to its agreement with Legacy Partners.

“If the leasehold and the option agreement are assigned, the county is entitled to receive a participation share equal to the greater of: 2 percent of the [sales price] or 10 percent of the net transfer proceeds,” county staff said. “The participation fee is currently expected to be approximately $348,000, representing 10 percent of the $3,478,000 that Legacy has realized as profit from the assignment.”

Neptune Marina is currently home to 136 apartments and 182 slips. Those apartments and slips are slated for demolition, however, as the county and Legacy Partners prepare to renovate the marina and surrounding neighborhood with 161 slips, 526 apartment units, a public promenade, docks, a wetlands park, and a boating venue capable of accommodating vessels up to 40 feet in length.

A transient and water taxi slip also could be added to the renovated Neptune Marina.

The Final Environmental Impact Report was issued in February 2010 and concluded the project, when completed, would result in several hundred more people living on Marquesas Way and contributing to the population growth of Marina del Rey.

Legacy Partners, founded in 1970, is a privately held real estate investment management and development company. Its current portfolio in Southern California represents about $725 million in development costs. The firm owns and operates 62 communities and more than 13,000 units.

Meanwhile Greystar has $4.3 billion worth of projects currently under construction, according to county staff.

The Neptune Marina project earned the backing of the Small Craft Harbor Commission in 2008 and 2011. Supervisors approved a series of grant options for Legacy Partners in December 2015.

The leasehold interest provided Legacy Partners with two six-month options; each option requires a $50,000 payment to the county. Extending the construction completion date would cost Legacy Partners another $150,000.

Other Marina del Rey projects green-lighted by county officials included Anchorage 47, Mariners Bay and Pier 44.

Questions about the Neptune Marina project can be directed to Don Geisinger of the county’s Department of Beaches and Harbors. He can be reached by phone – 310-305-9506 – or email – dgeisinger@bh.lacounty.gov.