LONG BEACH, CA—A new joint venture between Trigate Capital and Lotus Real Estate Partners has made its first Southern California acquisition, an 83,000-square-foot office property in Long Beach, CA. This acquisition is likely to be the first of several; the joint venture has announced that is plans to invest a total of $60 million in the Southern California market.
“This acquisition is an excellent example of the type of product we are actively seeking,” says Brian Walker, managing director at Lotus Capital Partners. “The asset was acquired well below replacement cost and will be repositioned for lease to one or multiple tenants. Moreover, its strategic location at the intersection of two major freeways makes the property highly attractive to companies desiring a central location in the Los Angeles basin.”
Located at 4031 Via Oro Ave., the property is well positioned for creative office users with 10,000-square-feet of 32-foot clear space and the potential for 16-foot exposed ceilings. The joint venture purchased the property from Long Beach LLC for $6.1 million and has already begun a $1.6 million capital improvement program, which includes renovations of the interior offices, the lobby area, mechanical systems and the roof.
Similarly, Parallel Capital Partners also recently purchased an office property in the Long Beach market, the Shoreline Square office tower on the waterfront. The company purchased the property for $102 million, one of the lowest discount-to-replacement costs in the country. Matt Root told GlobeSt.com that he is very enthusiastic about the Long Beach market, especially considering the amount of residential and multifamily development going on in the area.
For its other commercial real estate acquisitions, the joint venture is focusing around the Los Angeles area. “The partnership will pair local experience and relationships with discretionary capital to pursue value-added real estate investments,” says Jason Obenhaus of Trigate, one of the executives who worked on the transaction. “We are confident in Lotus Real Estate’s ability to source additional investments and manage property repositions such as Via Oro.”