Newmark 1 announces it has completed the sale of Airport Plaza, a two-building, 126,219-square-foot multi-tenant office project in Long Beach, California for $29 million.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Ken White Senior Managing Director Scott Schumacher represented the seller, WCCP Airport Plaza L.B. LLC. The buyer was LB5000, LLC. Sean Fulp and Ryan Plummer also assisted with the sale.
Located at 5000 and 5001 Airport Plaza Drive, the asset is 100% leased to 19 tenants, with
prominent occupiers being the Federal Aviation Administration, Advanced Medical Management, Inc and NACA Logistics, Inc. The property is situated on 2.7 acres, which has a 46-year ground lease in place with the city of Long Beach.
“The suburban Long Beach office market has performed well since the onset of the pandemic with tenant activity increasing in part due to office to industrial conversions in office markets near the Ports,” said Shannon. “Vacancy for this asset averages only 6% since 2014, which is less than half that of the submarket through that timeframe.”
The property is centrally located presenting easy access to the 405 Freeway, numerous retail amenities as well as a nearby large skilled labor pool and affluent residential communities including Lakewood, Long Beach and the Palos Verdes Peninsula. The property recently benefitted from $1.5 million in capital improvements.
According to Newmark Research’s 2Q22 Capital Markets report, Los Angeles County ranked
second, behind Manhattan, among markets with the largest office investment sales in the first half of 2022. Quarterly investment volume overall, across all property types, increased 17.5% year-over-year, representing the third largest quarter volume total in history. While multifamily remains the most sought-after property type, office, retail and hospitality volume have normalized as investors have grown more confident about the recovery of travel and leisure spending as well as the return of more employees to the office.