MDNI GROUP Launches Renovation Project for 28-Unit Residence at 901 Ocean Avenue, Santa Monica, Overlooking the Pacific

MDNI GROUP (Location: 12925 Riverside Drive, Suite 302, Sherman Oaks, CA / Managing Partner: David Hirsch, Naohiro Nishida), a real estate development company based in Los Angeles, California, USA, has launched a value-add acquisition project for "Ocean Santa Monica Apartments" (901 Ocean Avenue, Santa Monica, CA 90403), a residence located in one of Santa Monica's most exclusive areas along Ocean Avenue. The project aims to maximize the property's profitability and asset value through the early occupancy of vacant units and large-scale renovations.

A Rare Location on Ocean Avenue Cliffside, Unparalleled in Santa Monica

The property is located at 901 Ocean Avenue, between Montana Avenue and Wilshire Boulevard. It boasts a unique location in Santa Monica, perched on a cliff overlooking the Pacific Ocean and directly across from the beach. Nearly all units offer panoramic views of the Pacific Ocean and the Santa Monica Mountains, with all west-facing rooms providing unobstructed ocean views, and many units offering direct views of the water.

This property, comprising a double lot of approximately 15,011 square feet with a building area of approximately 30,954 square feet, offers a coastal location that is becoming increasingly difficult to replicate under current regulations and development restrictions. The Pacific Ocean, Palisades Park, and the commercial area of Montana Avenue are all within walking distance. Its proximity to the Pacific Coast Highway and the 10 and 405 freeways, along with being approximately 8 miles from LAX, provides excellent access to major Westside hubs.

Property Overview - 28 Renovated Residential Units

The property is a 3-story apartment building constructed in 1961, with major renovations completed in 2015 and between 2021-2022. The 28 units consist of 18 one-bedroom, one-bathroom units and 10 two-bedroom, two-bathroom units. It also includes 33 gated garage parking spaces with EV charging stations.

Common areas feature a rooftop ocean-view deck with built-in BBQ and fire pit, a gated pool, multiple lounge areas, an elevator, shared laundry facilities on each floor, bicycle parking, and solar panels. Each unit is appointed with high-quality finishes, including wood or bamboo-style flooring with tile accents, Caesarstone or granite countertops, custom wood cabinetry, a full suite of stainless steel appliances, designer lighting, insulated double-pane windows, and copper plumbing. Infrastructure updates, such as copper plumbing and modern electrical systems, have already been completed, minimizing the need for additional major repair expenses.

Value-Add Strategy - Occupancy and Rent Optimization

The core of this project is a value-add strategy combining early occupancy of vacant units with renovations. Currently, some units are vacant due to foreclosure proceedings preventing leasing activities. By upgrading and quickly occupying these units, an increase in rental income is expected shortly after acquisition.

Furthermore, Santa Monica's rent control regulations allow for market rent resets upon vacancy. This means that NOI (Net Operating Income) increases with each tenant turnover. The current rents for this property have approximately 19% upside potential compared to market rents. The demand is further supported by the fact that furnished penthouses have achieved rents of $10,150-$10,250 per month.

Market Advantages of Santa Monica

Established as a city in 1886, Santa Monica is a coastal city located at the western edge of Los Angeles County, consistently remaining one of Southern California's most affluent and supply-constrained rental markets. It is a core area of "Silicon Beach," home to technology companies such as Google, Snap, Amazon, Apple, Roku, and Activision Blizzard, as well as entertainment companies like Lionsgate, Hulu, Sony Entertainment, and Universal Music.

With an average household income of $188,000, an average home price of $1.72 million, a 71.7% rate of bachelor's degree holders or higher, and an 86% white-collar workforce, the area has a high concentration of affluent and highly educated residents, creating a structural demand for quality housing. Chronic supply shortages due to strict zoning and development restrictions provide long-term support for rents and asset values. Local school districts are all recognized with National Blue Ribbon Awards or California Distinguished School status, and UCLA ranks as the #1 public university in the nation (U.S. News 2025).

About MDNI GROUP

MDNI GROUP is a comprehensive developer specializing in the development and operation of residential and commercial real estate, primarily in Los Angeles. The group boasts total assets exceeding $100 million, over 1,500 completed projects, more than 50 ongoing projects, and a track record of over 4,000 total entitled units.

Its greatest strength lies in its in-house construction company, enabling integrated management of quality, cost, and schedule. Coupled with extensive relationships with local businesses and stable financing capabilities through strong ties with multiple financial institutions, MDNI GROUP has achieved a solid track record in projects of various scales, including 611 N Virgil (30 units), 3521 Hughes (40 units), and 730 Vermont (210 units).

Contact Information

MDNI GROUP 12925 RIVERSIDE DR, STE 302, SHERMAN OAKS, CA, 91423 lisahanayama@mdnigroup.com 323-919-8761 https://www.mdnigroup.com/