LOS ANGELES—An entity controlled by Milan Capital Management has acquired the Park Tower, a class-A office building in Long Beach from Investcorp. The sale garnered attention from an institutional group of buyers interested in in breaking into the market. Long Beach has been undergoing a mini renaissance lately, centered in the downtown area, but spreading beyond. The revitalization has attracted many investor classes to the market lately.
“This was a typical institutional process, and we also had a lot of private capital interest,” Ed Hernandez, an investment specialist at Cushman & Wakefield, tells GlobeSt.com. “The group that ended up buying it had an exchange from a couple properties in the Inland Empire. They had owned in Long Beach and believed in the story going forward. They were happy to be able to exchange into a property with good cash flow, and they thought that they would continue to push rents because there should be some rising rents in the market.” Hernandez represented the seller in the transaction with Jeffrey Cole and Nico Napolitano of Cushman & Wakefield.
Located at 5150 Pacific Coast Highway in Long Beach, the 119,517-square-foot office building is 93% occupied by a mix of 20 tenants. “The seller did a significant amount of renovation and got it up to full occupancy, renewing some of the tenants in the building, like Child Net,” adds Hernandez. “This was a five-year hold for them, and they decided to sell.” The sales price was not disclosed, however, sources unrelated to the deal tell GlobeSt.com that Investcorp sold the property for $25 million. “The buyer was able to get a better return in this market than in many parts of L.A. and Orange County,” says Hernandez.
This is not the first class-A office property to trade during the Long Beach renaissance. Last year, the World Trade Center traded hands for $106 million in a transaction that garnered more than 100 offers from potential buyers. Private capital has also been making a play in the market now for the last year because of the higher cap rates and better value-driven opportunities in the market, but this may be another sign that institutional buyers are starting to look for opportunities as well. “There is a lot more private capital in the market, and they have been able to take advantage of more opportunities in the market because there hasn't been as many institutional buyers,” says Hernandez.
LOS ANGELES—An entity controlled by Milan Capital Management has acquired the Park Tower, a class-A office building in Long Beach from Investcorp. The sale garnered attention from an institutional group of buyers interested in in breaking into the market. Long Beach has been undergoing a mini renaissance lately, centered in the downtown area, but spreading beyond. The revitalization has attracted many investor classes to the market lately.
“This was a typical institutional process, and we also had a lot of private capital interest,” Ed Hernandez, an investment specialist at Cushman & Wakefield, tells GlobeSt.com. “The group that ended up buying it had an exchange from a couple properties in the Inland Empire. They had owned in Long Beach and believed in the story going forward. They were happy to be able to exchange into a property with good cash flow, and they thought that they would continue to push rents because there should be some rising rents in the market.” Hernandez represented the seller in the transaction with
Located at 5150 Pacific Coast Highway in Long Beach, the 119,517-square-foot office building is 93% occupied by a mix of 20 tenants. “The seller did a significant amount of renovation and got it up to full occupancy, renewing some of the tenants in the building, like Child Net,” adds Hernandez. “This was a five-year hold for them, and they decided to sell.” The sales price was not disclosed, however, sources unrelated to the deal tell GlobeSt.com that Investcorp sold the property for $25 million. “The buyer was able to get a better return in this market than in many parts of L.A. and Orange County,” says Hernandez.
This is not the first class-A office property to trade during the Long Beach renaissance. Last year, the World Trade Center traded hands for $106 million in a transaction that garnered more than 100 offers from potential buyers. Private capital has also been making a play in the market now for the last year because of the higher cap rates and better value-driven opportunities in the market, but this may be another sign that institutional buyers are starting to look for opportunities as well. “There is a lot more private capital in the market, and they have been able to take advantage of more opportunities in the market because there hasn't been as many institutional buyers,” says Hernandez.
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