Newmark has arranged the sale of a 78,404-square-foot, multi-tenant office building in Long Beach, CA for $16 million.
Newmark’s Executive Managing Director Sean Fulp, Managing Director Ryan Plummer and Directors Mark Schuessler and Ryan Tetrault represented the seller, Atlantic Pearl Investments. The buyer was a private, 1031-exchange investor.
The asset, which has recently undergone extensive renovations, is located at 1501 Hughes Way and is currently 96 percent leased to eight tenants, including Daylight Transport, Stars Behavioral Health, DB Schenker and CraneMorley, to name a few. The property is centrally located at the confluence of San Diego (I-405) and Long Beach (I-710) freeways.
Long Beach as a whole has experienced an urban renaissance over the past decade with more than 70 projects currently under construction. Since 2017 more than 7,000 new housing units, 1,000 new hotel rooms, and 4 million square feet of new commercial, industrial and municipal space is either completed or in the pipeline, accounting for over $3.5 billion in new development.
“The exchange buyer was attracted to the recently renovated building and the committed in-place tenancy, 75% of which consider 1501 Hughes their headquarters,” said Plummer. “With small floor plates, free parking and proximity to affordable housing and the Ports, this suburban office building will continue to perform well in a post-COVID environment.”
Fulp added, “Private capital continues to dominate the marketplace during the pandemic and it’s no surprise that suburban properties are seeing more demand.”
Despite headwinds from the coronavirus pandemic, suburban Long Beach continues to outpace the overall metro with rental rates continuing to grow at 1.8% while vacancy rates remain relatively stable at 8.8%, according to Newmark Research. The submarket provides employers a central location to draw labor from both Los Angeles and Orange Counties.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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