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Wednesday, May 18, 2022

Long Beach Exchange Sells for $158M

 LBX, from Burnham-Ward Properties for $158 million. Eastdil Secured brokered the deal.

“Although Covid undoubtedly impacted retail across all sectors, we’re now experiencing a tremendous return to growth across our entire portfolio, with foot traffic and sales numbers surpassing even pre-pandemic figures,” Chad Cress, chief creative officer at DJM, said in a statement. “This rebound, which reinforces the ever-changing nature of retail, is due largely in part to the outdoor nature of our properties as well as thoughtful community programming and relevant, region-specific merchandising. Long Beach Exchange is a fantastic addition to the DJM portfolio, and we look forward to shaping the property into the best version of itself.”

The 246,500-square-foot center at 4069 N. Lakewood Blvd. was built in 2018 at a cost of about $100 million.

Its tenants include Whole Foods, Handel's Homemade Ice Cream, Orangetheory Fitness, Ra Yoga, Silverlake Ramen, Ulta Beauty and Nordstrom Rack. The Hangar, a 17,000-square-foot food hall, is also part of the center.

“Long Beach Exchange is a perfect example of what retail should look like in the future,” Scott Burnham, chief executive and partner at Burnham-Ward Properties, said in a statement. “This iconic property promotes an experiential environment that encourages shopping through community and experiences by innovative property development. The continued success of LBX during these unprecedented times is a true testament of its consumer appeal, which has ensured that the center will continue to grow and thrive. DJM and its partners will be great stewards for this asset going forward.”

The acquisition of the Long Beach Exchange is part of DJM’s growth plans.

“Over the next year, we plan to double the square footage of our assets under management and focus on aggressive growth within our company,” Lindsay Parton, president at DJM, said in a statement. “We have positioned ourselves for the future with our team and are currently working through a number of deals that will reflect the true ethos of DJM's mission to create places where people and communities thrive.” DJM is also the owner of Hollywood & Highland. The company purchased the property with Gaw Capital USAin 2019 for $325 million.

In 2020, the two companies announced plans for a $100 million renovation to the site, including the addition of 100,000 square feet of creative office space and a better layout. It will be rebranded as Ovation Hollywood.

Nearby, DJM also counts Lido Marina Village in Newport Beach and Bella Terra in Huntington Beach among its portfolio.

PGIM Real Estate is DJM’s partner at Bella Terra and now at the Long Beach Exchange.

“We have seen firsthand the transformation DJM has created at Bella Terra,” Tim Hennessey, managing director at PGIM Real Estate, said in a statement. “We are extremely pleased with the value that DJM and PGIM Real Estate were able to add to the portfolio and deliver an excellent outcome for our investors even during these unprecedented times. We are excited to continue our work together at Long Beach Exchange.”

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans covers real estate for the Los Angeles Business Journal. A USC grad, Madans has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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