The master lease that includes Redondo Beach’s King Harbor Marina and several other properties surrounding it has been sold.
Roughly 13 years remain on the lease before it can be renegotiated with the city.
The lease’s new owner, Majestic KHM LLC, is controlled by Dr. Allen Ginsburg, the father of former City Councilmember Jeff Ginsburg.
Allen Ginsburg is also the leaseholder of the nearby Crystal Cove Apartments and Chart House restaurant. Neither of the Ginsburgs could be reached for comment Wednesday, Feb. 19, a day after the lease sale was announced at a City Council meeting.
The lease’s sale price has not been disclosed.
The city has virtually no control over the lease sale other than verifying the buyer is qualified and capable, which they were, according to Waterfront and Economic Development Director Stephen Proud.
“We used a third party to look at both of those issues,” Proud said, “and we were satisfied that Dr. Ginsburg and signees meet the criteria necessary for this transaction to occur.”
The announcement Tuesday ended months of speculation that the lease would be sold. So far, no changes have been announced, according to Harbor Commissioner Vicki Callahan, who said the marina could use several big upgrades.
“I do know the city is looking at sea level rise,” Callahan said, “and trying to figure out who is going to be paying and that could be costly.”
The current marina lease expires in 2032. Callahan said she does not expect any major changes until then, but it was impossible to know for sure.
King Harbor consists of three marinas: King Harbor, Portofino and Port Royal.
The King Harbor Marina lease includes 820 boat slips, with various properties fronting Harbor Drive, such as the boat yard, Bay Club, Blue Water Grill and the King Harbor Yacht Club; there are also apartments and offices included in the lease.
King Harbor has previously been controlled by Marina Cove Ltd, operated by the Guthrie family since 1971. Les Guthrie, who died in 2011, passed on control to his wife MaryAnn and his son Sean.
On Tuesday, the family said the sale was bittersweet.
MaryAnn Guthrie credited her husband Les with being the first developer to add land-side properties to a marina leasehold.
In 2019, MaryAnn Guthrie said the assets collected $22 million in gross revenues. The city received $2.1 million in rent that year, according to a city staff report.
“With success comes challenges,” MaryAnn Guthrie said. “We’ve withstood storms, earthquakes, recessions and litigation. But we’ve always tried to operate our leaseholds with the highest integrity. We’re most proud of our community support.
“We wish Dr. Ginsburg and his team every success,” she added. “Sunsets are proof that even endings can be beautiful.”