Dealmaker: Newmark Brokers $68M Waterfront Redevelopment Site Sale

Newmark, New York, sold Marina Shores, a 6.1-acre retail shopping center in Long Beach, Calif., to be repurposed for multifamily.

The property traded for $67.9 million.

Newmark Co-Head of Capital Markets Kevin Shannon, Vice Chairman Bill Bauman, Executive Managing Director Ken White, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein represented seller Regency Centers, Jacksonville, Fla., and buyer Onni Group, Vancouver, B.C.

Benton noted Marina Shores 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,” he said.

Located at 6500 East Pacific Coast Highway, the property has views of the marina in the Belmont Shore submarket, bounded by Seal Beach to the south and CenterCal Properties’ upscale 2nd and PCH retail center to the north.

“Coastal real estate coupled with a progressive political landscape shaped a very competitive process,” Muhlstein said. “Developers are excited to work with cities that recognize the immense housing shortage and want to make a positive contribution.”

Regency Centers Senior Vice President of Investments John Mehigan said a recent rezoning by the city or Long Beach meant retail was no longer the highest and best use for the land and multifamily represented a prime opportunity for all stakeholders.

U.S. multifamily sales volume approached $80 billion in the third quarter–the largest quarterly sales volume on record–as investor appetite for multifamily surges, Newmark reported in its most recent Multifamily Capital Markets Report. “Increased demand for apartments is projected to support strong levels of rent growth through the end 2022,” the report said.