Brentwood-based Tova Capital Inc. has acquired a fully occupied 34,500-square-foot retail complex near downtown Long Beach in a $6.2 million off-market transaction.
The retail property is located on a nearly 1-acre site at 205-233 E. Anaheim St., between Long Beach Boulevard and Pacific Avenue. The property consists of two approximately 17,000-square-foot single-story buildings occupied by Trademark Brewing and climbing gym Long Beach Rising, under long-term leases. The property benefits from its prime location across the street from two recently completed senior and affordable multifamily projects and is adjacent to a 36-unit townhome development that is under construction.
Jared Swedelson from NAI Capital represented Tova, while the undisclosed seller was represented by Sheva Hosseinzadeh from Coldwell Banker Commercial Blair.
The retail property lies within the Transit Node High zone of the city’s Midtown Specific Plan, which was created to encourage housing density along the transit stops on Long Beach Boulevard. The Midtown Specific Plan and Downtown Plan have led to more than 2,100 housing units being delivered over the past five years in the downtown Long Beach submarket.
“The Downtown and Midtown Specific Plans have done their job of luring institutional investors and developers to build much-needed quality housing in the submarket including market-rate, affordable and senior housing,” Ron Harari, president and chief executive of Tova Capital, said in a statement. “Our tenants will continue to benefit from the new residents moving into the area.”
Retail rents in Long Beach grew by 2.2% over the past 12 months. Downtown Long Beach has been strong, as retail rents are 30.9% higher than they were a decade ago, according to Tova Capital Vice President Zach Boren.
“This was a tremendous opportunity to acquire a cash-flowing retail asset at a very low basis,” said Boren. “Given the challenging credit markets, we were able to secure attractive seller financing, which allowed the deal to make sense in a market with few transactions occurring.”
Long Beach, with a population of more than 450,000, is one of the 50 largest cities in the United States. It is home to the Ports of Los Angeles and Long Beach, the country’s largest global supply chain channel. Other demand drivers include its popular public spaces, parks and waterfront, educated work force and many tourist attractions including the Queen Mary and the Aquarium of the Pacific.
Tova Capital plans a long-term hold of the retail property, which is its first investment in Long Beach.
