JPI Lands Construction Loan for Mixed-Use Project in Southern California

The redevelopment of a defunct shopping plaza in Long Beach, Calif., is picking up steam, with the first phase of the project landing an eight-figure construction financing package. 

Texas-based developer JPI secured $88.4 million from Tokyo Tatemono US and BMO Bank toward Portico, a 272-unit, mixed-use building at 450 Promenade North, according to PropertyShark records. Sixteen of those units are earmarked as affordable, and the build will also include about 18,841 square feet of ground-floor commercial space. 

Portico is the first phase of Mosaic, the 14-acre redevelopment of shuttered City Place mall in Long Beach. Previous owner Shooshani Developers defaulted on a $63 million loan tied to the property in 2020, and the mall fell into the hands of Turnbridge Equities, Waterford Property Company and Monument Square Investment Group the following year. The trio still plan to develop most of Mosaic — which in total calls for 900 units and 38,000 square feet of commercial space — though sold the Portico parcel (which JPI had previously called Jefferson Long Beach) to JPI last year for $14.7 million, records show. 

“This project represents a key step forward in reimagining Downtown Long Beach,” Mollie Fadule, JPI’s chief financial and investment officer, said in a statement. 

Construction on Portico is expected to finish in 2028, per JPI. 

In other Long Beach retail news, CenterCal Properties and DRA Advisors in October paid $145 million for Long Beach Towne Center, an 870,000-square-foot mall about 10 miles northeast of the Mosaic site. The JV, together with the City of Long Beach, are planning a major overhaul to the 26-year-old property, including pedestrian walkways, lighting, landscaping, public art, parking and a new experiential retail-driven leasing effort. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.