Long Beach Moves Out of L.A.’s Shadow
The Long Beach renaissance is long overdue, but is finally picking up steam with 1,500 apartment units expects to come to the market this year.
Long Beach is slowly but surely moving out of Los Angeles’ shadow. The ongoing renaissance may be overdue, but it is picking up steam. This year, 1,500 apartment units are scheduled for delivery in Downtown Long Beach along with 38,000 square feet of commercial space, and the construction pipeline is continuing to grow. The city is supporting the growth as well with infrastructure updates and renovation plans for government buildings. All in all, it means big changes for the market.
Long Beach, which has long been in the shadow of L.A., is experiencing a much-overdue renaissance,” Holly Neber, CEO of AEI Consultants, tells GlobeSt.com. “The Long Beach Aquarium is completing a $53 million expansion wing, and the City is finishing a new Civic Center that includes a new City Hall and Main Library in 2019. Additional proposed development in the downtown area reportedly includes approximately 1,100 residential units and more than 38,000 square feet of commercial space.”
While all commercial asset classes have seen the benefits of the renaissance, apartment units have been the most popular investment. The units target millennials and other young professionals and provide a much-needed supply of housing in the Southern California market. “It appears Long Beach has successfully built an urban environment at the beach,” says Neber. “This is due partly to the market’s need to grow and remain relevant by attracting professional millennials to the proximity to the beach, entertainment and cultural events with upgraded real estate and also partly to the 2028 Summer Olympics in L.A., which calls for a sprucing up of the Long Beach skyline.”
The renaissance isn’t only about attracting millennials to the market but also supporting the demand from existing residents. “As in many parts of California, Long Beach is experiencing a housing shortage, and vacancy is extremely tight,” says Neber. “The City’s revitalization efforts and creation of a downtown urban environment will continue to attract people to this market, which will increase the need for rental housing even more. And all of the changes happening in the market are sure to entice more tourists and businesspeople to visit, creating a rising demand for hotel rooms in the Downtown Long Beach area. Both of these projects are much-needed additions to the city from a demand perspective.”
AEI Consultants has partnered with Pacific 6 to redevelop the Breakers Hotel and Ocean Center, which will become an apartment building. “We’re happy to be assisting our client Pacific6 on The Breakers Hotel and Ocean Center projects, which respect the historic significance of the original buildings while redeveloping them into properties that will benefit the Long Beach community,” says Neber.