December 2, 2021 9:00 AM
Newmark announces it has completed the sale of Marina Shores, a 6.17-acre retail shopping center planned for multifamily redevelopment. The property sold for $67.9 million.
Newmark Co-Head of Capital Markets Kevin Shannon, Vice Chairman Bill Bauman, Executive Managing Director Ken White, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein represented the seller Regency Centers, and the buyer, Onni.
“Marina Shores received tremendous interest with over 15 offers,” said Benton. “The demand was driven by the property’s new specific plan (SEASP) conducive for multifamily development, its highly amenitized micro location and the efficiency of hard costs in regard to the scale of the development paired with the high rent growth in the submarket.”
Located at 6500 East Pacific Coast Highway, the property presents unobstructed views of the marina in the Belmont Shore submarket, bounded by Seal Beach to the south and 2nd and PCH to the north. The property is walking distance to 2nd & PCH, a high-end destination retail center delivered by CenterCal in the fall of 2019, offering national, regional and locally grown retailers and restaurateurs such as Whole Foods Market, Urban Outfitters, Lululemon, The Bungalow Kitchen by Michael Mina, Tocaya Organica, Caffe Luxxe, Peloton and more.
Muhlstein added, “Coastal Real Estate coupled with a progressive political landscape shaped a very competitive process. Developers are excited to work with cities that recognize the immense housing shortage and want to make a positive contribution. The size, demand and waterfront location complemented by walkable first-class amenities make this a unique development opportunity.”
“The sale of Marina Shores is a perfect example of the success of Regency’s capital recycling program, which allows us to accretively reinvest capital to grow our core business,” said John T. Mehigan, Senior Vice President of Investments with Regency Centers. “With the recent rezoning efforts by the City, the highest and best use was no longer retail, and the future redevelopment by Onni represents a prime opportunity for all stakeholders involved.”
Shannon concluded, ““The quality of the capital and the competition for this trophy multifamily site was intense which resulted in a great execution for our client.”
U.S. multifamily sales volume in 3Q21 totaled $78.7 billion, signifying the largest quarterly sales volume figure on record as investor appetite for multifamily continues to surge, according to Newmark Research. Trailing-twelve-month volume totaled $241.9 billion, also an all-time high. 3Q21 effective rent growth rose 5.9%, the largest quarterly increase on record increased to 3.1% on an annualized basis. Increased demand for apartments is projected to support strong levels of rent growth through the end 2022.
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Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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