More Long Beach Apartments Trade Hands This Year
By Greg Cornfield February 25, 2022 5:05 pm
reprints
Action has picked up in Long Beach, Calif., where more multifamily assets are trading hands so far in 2022.
Golden Bee Properties is the latest to tap in after acquiring the Southfield West and Southfield East Apartments with 143 units for a total of $37.1 million. The properties are located across the street from one another, near access to Interstate 405 and the Long Beach Freeway.
Marcus & Millichap (MMI) and its Institutional Property Advisors (IPA) division announced the deal and represented the seller, private investor Carter Pasch. The Pasch family has owned the properties for more than 40 years.
The buildings “are located in a northern area of Long Beach where no market-rate properties of 50 units or more have been built in over 30 years and none are currently under construction,” said Marcus & Millichap’s Tyler Leeson. “Any future development would require significantly higher rents, keeping the properties well-insulated against competition for the foreseeable future.”
The deal comes on the heels of Sherman Oaks-based MWest Holdings acquiring 94 luxury units in Long Beach, and Holland Partners paying $41 million for a multifamily redevelopment downtown.
IPA’s Joseph Grabiec said the median price for a single-family residence in Long Beach has risen to $780,000.
“This represents an 122.9 percent increase in Long Beach home prices over the past 10 years,” Grabiec added. “As home ownership remains out of reach for most residents, demand for quality rental housing will remain strong and place these two apartment assets in an excellent position to grow revenue while maintaining high occupancy.”
Leeson and Marcus & Millichap’s Kevin King, Nick Kazemi and Matthew Kipp, along with IPA’s Grabiec, Kevin Green and Greg Harris represented the seller and procured the buyer.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
