Colony Capital — a Los Angeles-based private equity real estate firm — has purchased the 18-story, 450-unit Water Terrace tower in the Marina del Rey area for $305 million and plans to sell the units — which are currently rented as apartments — as condominiums.

The Water Terrace tower apartment building is at 13700 Marina Pointe Drive.

Colony Capital purchased the building from Equity Residential. The sale is expected to close by the end of this month, according to Colony Capital representative John Brady.

Brady says that Colony Capital plans to invest $35 million into the renovation of the 450-unit building to create a “luxury waterfront residence,” said Brady.

There is a possibility that Colony will combine some of the 450 units. Brady says that it is Colony’s intention to sell all of the units.

“Water Terrace will be a unique living experience, offering the best waterfront living in California with the kind of services and amenities offered by the best luxury doorman buildings in New York City,” said Brady.

Equity Residential completed construction of the Water Terrace apartment building in 2003.

Colony Capital recently purchased four Las Vegas casinos last year from Harrah’s Entertainment and Caesars Entertainment for $1.2 billion.

“The unique location is one of the most sought-after residential areas, with its proximity to the ocean and LAX airport, accessibility to employment centers, the incomparable views and the impressive array of services and amenities that the neighborhood offers,” a Colony Capital representative said. “The luxury condominiums will offer turnkey living with privacy and security that appeals to an affluent global client base who choose to make the Los Angeles waterfront one of their residences.”

The condominiums are expected to be on the market for reservations next month.