Globest Sectors

The sale of the property between a private investor and owner operator and the new owner, a Chicago-based private equity firm, was reported by brokerage firm Marcus & Millichap.

After several years of redeveloping older, underutilized buildings, new construction has begun.

A joint venture of Trammell Crow Co. and Elm Tree Funds was awarded a 20-year build-to-suit lease in August with the General Services Administration for the project.

JP Morgan and Mack Real Estate are providing $294 million for the luxury condominium tower. Construction on the 22-story building that is being built by John Moriarty & Associates has begun.

"The sale was driven by a long-term absolute triple-net lease," says STREAM Capital's Phil DiGennaro. "The private buyer was in a large 1031 exchange and was drawn to the company's headquarters location outside of Pittsburgh.”

The asset class is already in high demand with narrow spreads, and can absorb rising interest rates to a greater degree than other assets.

The multifamily market in Long Beach has grown rapidly in the last five years, and now, the tallest luxury high-rise in the market is on its way.

With job growth comes housing demand and this disparity underscores the fact that regardless of the need for housing that comes with job production, a market can't absorb product that isn't there.