LONG BEACH, CA—Urban Pacific Multi-Housing has purchased a 15,000-square-foot land parcel in Downtown Long Beach from a failed condo project. According to Urban Pacific, this site was the last remaining distressed asset in the downtown market. The developer plans to build a 30-unit, transit-oriented multifamily development on the site.
The site was severely distressed and only 30% complete when the back pulled funding in 2008. Because this is a smaller parcel of land, it has gotten little attention from investors since the recession ended. “Our site, being partially built, need a much more creative hand,” Scott Choppin, founder and managing partner of Urban Pacific Multi-Housing, tells GlobeSt.com. “The original project was a 10-unit condo project with podium parking. We re-entitled the site for 30 apartment units, while keeping the ability to reuse the existing improvements for our new project. We did this predominately through use of the stacked mechanical parking lifts, which allowed us to increase the density of parking within the same original garage footprint.”
Named Sixth Street Lofts, the building will have a mix of studio, one- and two-bedroom apartments, and will feature a mechanically stacked parking structure, the first of its kind in the downtown market. The property itself will have two rooftop decks with city views, fireplaces and resort-style seating. Onsite amenities include a fitness room, bike room and entertainment lounge. The interior units will have 11-foot ceiling heights, walk-in closets and galley-style kitchens. Construction is expected to begin in May.
Choppin explains that the company will be targeting Millennials for the project, which is located in a very walkable neighborhood in the East Arts District. “The renter profile is someone who is seeking a close location close to where they work, a walkable neighborhood and a downtown lifestyle that is located adjacent to transit and cultural amenities and retail shopping opportunities,” Choppin adds. “The downtown harbor and beaches are less than a mile away. As well, the Long Beach Grand Prix is held every April.”
Urban Pacific purchased the land parcel for under $1 million, and plans to invest $6.5 million into the development project. “This is the first project to start development and construction without the benefit of city of Long Beach financial involvement in the last several years; this is truly a market based development,” says Choppin. “The City of Long Beach was exceptionally helpful in processing our entitlements under the new downtown plan. This was an incredible experience in efficiency in our dealings with the Planning and Building Departments. City staff went well out of their way to help us get this project going.”
Long Beach is seeing a fair share of development. GlobeSt.com recently reported that ground also broke on a $70-million development called the Current from AndersonPacific LLC and Ledcor Properties Inc.