February 4, 2022 9:00 AM
Newmark announces it has facilitated the sale of Shoreline Square, a Class A, 20-story, 410,920-square-foot tower in downtown Long Beach for $85.5 million.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon and Executive Managing Director Ken White and Rob Hannan and Senior Managing Director Laura Stumm represented the seller, Parallel Capital Partners, a commercial real estate investment and operating company, in the transaction. The buyer was Shoreline Square Holdings LLC, funded by capital originating from the Pacific Rim.
“The buyer was attracted to the numerous credit government tenancies in this asset and the attractive cash on cash returns produced by a favorable debt market as well as the substantial discount to replacement cost,” said Shannon.
Stumm added, “Downtown Long Beach has seen over $2 billion in investment over the last decade and has a robust future commercial and residential development pipeline. Corporations and government tenants alike have recognized the relative value that this market provides, as reflected by the tenure of the tenancy at Shoreline Square.”
According to Matt Root, CEO of Parallel Capital Partners, his company acquired Shoreline Square in 2014 and since then the property has exceeded all expectations. “We accomplished what we wanted with this property–including implementing multiple sustainability measures, attaining LEED gold status and renewing GSA’s Department of Homeland Security-Customs and Border Protection for 20 years–ultimately achieving a positive return on our investment.”
Located at 301 East Ocean Boulevard, the LEED Gold-Certified building is 92 percent leased to a diverse tenant mix. 52% of the rent roll included US Government and Municipal tenants, namely US Customs (GSA), CA State Land Commission, Department of Defense, CA Coastal Commission, and ATF (GSA), for an average commitment to the building of over 28 years, with over 10 years of weighted average lease term remaining for these tenants. Collectively, Shoreline Square provides a well-diversified tenant roster with 69% of the rent roll maintaining an investment-grade credit rating and representation from the government, banking, shipping, software/technology, energy, insurance, legal and professional service industries. The building featured onsite amenities including Jersey Mike’s, Comeria Bank, Café 301 and Corporate Concierge as well as direct access to The Westin Long Beach.
The property is directly across the street from the Metro Station, adjacent to the Port of Long Beach and Los Angeles and in proximity to the Long Beach Airport as well as the 710, 405 and 110 Freeways.
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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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