Onni Group of Cos. purchased the 6.2-acre property, at 6500 E. Pacific Coast Highway, from Regency Centers Corp.
Newmark Group Inc.’s Kevin Shannon, Bill Bauman, Ken White, Chris Benton and Anthony Muhlstein represented the seller and the buyer in the transaction.
“The quality of the capital and the competition for this trophy multifamily site was intense, which resulted in a great execution for our client,” Shannon said in a statement.
The property received more than 15 offers.
“The demand was driven by the property’s new specific plan conducive for multifamily development, its highly amenitized micro location and the efficiency of hard costs in regard to the scale of the development paired with the high rent growth in the submarket,” Benton said in a statement.
Muhlstein said the site’s size, waterfront location and proximity to amenities made it incredibly desirable. The property has views of the marina in Belmont Shore and is walking distance to 2nd & PCH, a retail center that opened in 2019.
“Developers are excited to work with cities that recognize the immense housing shortage and want to make a positive contribution,” Muhlstein said in a statement. “The size, demand and waterfront location complemented by walkable first-class amenities make this a unique development opportunity.”
Multifamily properties have been in high demand.
During the third quarter, $78.7 billion in multifamily properties traded hands nationwide, the most for any quarter on record, according to Newmark research. The brokerage expects rent growth, which was 5.9% during the quarter, to continue.
The Long Beach area has seen some of that interest. In November, a 17-property apartment portfolio with a total of 155 units in the area sold for $42 million to an unnamed buyer.
Newport Beach-based Waterford Property Co. and the California Statewide Communities Development Authority have also purchased a multifamily asset in the area. The two entities purchased the 216-uit Oceanaire at 150 W. Ocean Blvd. for $120 million, with plans to convert it to middle-income housing.
Also this year, Waterford purchased the 14-acre City Place Long Beach with partners New York-based Turnbridge Equities and Beverly Hills-based Monument Square Investment Group for an undisclosed sum.
