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2/10/22
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Shoreline Square, a Class A, 20-story, 411k sf office tower in downtown Long Beach, traded hands for $85.5 mil, or $208/sf. The building, located at 301 East Ocean Blvd, was purchased by Shoreline Square Holdings LLC. The seller was Parallel Capital Partners.
The LEED Gold-Certified building is 92% 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’s retail tenants include Jersey Mike’s, Comeria Bank, Café 301 and Corporate Concierge. The property offers direct access to The Westin Long Beach and is situated directly across the street from the Metro Statio. It is adjacent to the Port of Long Beach, and is near the Long Beach Airport as well as the 710, 405 and 110 Freeways.
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 in the deal.
“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.
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.”
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