CBRE announced the sale of an office buildings in Long Beach for $13.35 million to Atlantic Pearl Investments, a high net-worth group based in Los Angeles.
CBRE’s Mark Shaffer, Anthony DeLorenzo, Gary Stache and Doug Mack, members of the firm’s Investment Properties SoCal Team, represented the seller in the transaction, a Brookfieldsponsored private real estate fund.
The 78,279 square-foot Long Beach property is a four-story office building, located at 1501 Hughes Way. It sold for $175 a square foot and was 88% occupied, featuring flexible floor plates, an updated lobby and a steel construction and glass façade. The site also has easy access to the 405/710 Freeway intersection.
“Several of our last transactions have involved high net worth/1031 Exchange buyers paying a premium over and above value-add investors,” said Shaffer. “Since 2015, our team sold or has in escrow 156 transactions valued in excess of $2.3 billion. We just closed another such sale in Artesia.”
He added “Long Beach and Southern California have gone through a tremendous recovery. This has attracted employers, employees and in turn investors. High net-worth investors are ceasing opportunities to buy office properties with good in-place cash flow at rents that have not yet met or exceeded the previous peak, offering the potential for significant upside.”
The Long Beach office market has been steadily improving, with overall vacancies at 15.5% in the fourth quarter, down from 16.4% a year earlier, according to the latest CBRE research. Asking rents for the same time period climbed 8.4% to $2.46 per square foot.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
