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1/12/23
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Tova Capital has acquired a fully occupied, 34.5k sf retail complex near Downtown Long Beach in a $6.2 mil ($180/sf) off-market transaction. The retail property is located on a nearly one-acre site at 205-233 E. Anaheim St, between Long Beach Blvd and Pacific Ave, the city’s main north/south arterials and transit lines.
The property consists of two 17k sf, single-story buildings occupied by a popular brewery, Trademark Brewing and climbing gym Long Beach Rising, under long-term leases. The property benefits from its prime location across the street from two recently completed senior and affordable multifamily projects and is adjacent to a future 36-unit townhome development.
The retail property lies within the Transit Node High zone of the city’s Midtown Specific Plan, which was created to encourage housing density along the transit stops on Long Beach Blvd. The Midtown Specific Plan and Downtown Plan have led to over 2,100 housing units being delivered over the past five years in the downtown Long Beach submarket.
“The Downtown and Midtown Specific Plans have done their job of luring institutional investors and developers to build much needed quality housing in the submarket, including market-rate, affordable and senior housing,” said Ron Harari, president and CEO of Tova Capital. “Our tenants will continue to benefit from the new residents moving into the area.”
Retail rents in Long Beach has grown by 2.2% over the past 12 months. Downtown Long Beach has been convincingly strong, if not transformational as retail rents are 30.9% higher than they were a decade ago, according to Tova Capital Vice President Zach Boren.
“This was a tremendous opportunity to acquire a cash-flowing retail asset at a very low basis,” said Boren. “Given the challenging credit markets, we were able to secure attractive seller financing, which allowed the deal to make sense in a market with few transactions occurring.”
Long Beach with a population of more than 450,000 is one of the 50 largest cities in the United States. Situated on the Southern California coast between Los Angeles and Orange Counties, it is home to the Ports of Los Angeles and Long Beach, the country’s largest global supply chain channel. Other demand drivers include its popular public spaces, parks and waterfront, educated work force and many tourist attractions including the Queen Mary and the Aquarium of the Pacific.
Tova Capital plans a long-term hold of the retail property, which is its first investment in Long Beach. Jared Swedelson from NAI Capital represented Tova, while the seller was repped by Sheva Hosseinzadeh from Coldwell Banker Commercial BLAIR.
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