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2/28/22
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Holland Partners purchased Congressional Place, a two-story, 7.8k sf office building in Long Beach, in a $41 mil transaction. The property, located at 6700 East Pacific Coast Hwy, is planned as a multifamily redevelopment project.
Photo: By CoStar; provided by Newmark |
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The 2.53-acre parcel sits on the border of Long Beach and Seal Beach and presents unobstructed views of the marina and ocean. The property is convenient to major freeways and public transportation and offers a high walkability rating. It is immediately adjacent to 2nd & PCH, a new 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.
Chris Benton, Anthony Muhlstein, Kevin Shannon, Bill Bauman, Ken White and Sean Fulp with Newmark represented the seller, ValueRock Realty, an Irvine-based real estate investment firm.
Muhlstein commented, “Given the disparity between office and multifamily market fundamentals and favorable zoning, office is no longer the highest and best use of this property.”
Given relatively stronger market fundamentals, investors have increased allocations to multifamily properties while decreasing allocations to office assets over the past several years, according to Real Capital Analytics data analyzed by Newmark Research. Between 2006 and 2010, investors allocated 22% of commercial real estate investment dollars to multifamily assets and 29% to office assets. As of 2021, office allocations had declined to 13% while multifamily allocations had risen to 39%, the highest of all major property types.
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