Long Beach Office Tower Trades for $85M
Parallel Capital Partners has sold the 410,920-SF, class A, LEED Gold-certified property, Shoreline Square, which is currently 92% leased.
LONG BEACH, CA – Commercial real estate investment and operating company, Parallel Capital Partners has sold a class A, 410,920-square-foot office tower in downtown Long Beach, CA to Shoreline Square Holdings LLC for $85.5 million.
Shoreline Square Holdings is funded by capital originating from the Pacific Rim.
The LEED Gold-certified property, Shoreline Square, is 92% leased. The property is 52% leased to US government and municipal tenants, including US Customs, CA State Land Commission, Department of Defense, CA Coastal Commission and ATF, which have an average commitment of more than 28 years, with more than 10 years of weighted average lease term remaining.
Of the property’s tenants, 69% maintain an investment-grade credit rating and represent the government, banking, shipping, software/technology, energy, insurance, legal and professional service industries.
Situated at 301 E. Ocean Blvd., Shoreline Square offers onsite offerings including Jersey Mike’s, Comeria Bank, Café 301, Corporate Concierge and direct access to the Westin Long Beach.
Parallel Capital Partners originally acquired Shoreline Square in 2014.
“We accomplished what we wanted with this property–including implementing multiple sustainability measures, attaining LEED gold status and renewing GSA’s Department of Homeland Security-Customs and Border Protection for 20 years–ultimately achieving a positive return on our investment,” states Matt Root, CEO of Parallel Capital Partners.
The tower is located directly across the street from a metro station and adjacent to the Port of Long Beach and Los Angeles. The property is situated near the Long Beach Airport, the 710 Freeway, 405 Freeway and 110 Freeway.
Representing the seller in the transaction was Newmark’s co-head of US capital markets Kevin Shannon, executive managing directors Ken White and Rob Hannan, and senior managing director Laura Stumm.
“The buyer was attracted to the numerous credit government tenancies in this asset and the attractive cash on cash returns produced by a favorable debt market as well as the substantial discount to replacement cost,” says Shannon.
“Downtown Long Beach has seen over $2 billion in investment over the last decade and has a robust future commercial and residential development pipeline,” says Stumm. “Corporations and government tenants alike have recognized the relative value that this market provides, as reflected by the tenure of the tenancy at Shoreline Square.”