Hanley Investment Group Arranges Sale of Trophy Retail Property in Long Beach
Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm completed the sale of a rare high-street, multi-tenant retail asset located in the popular Belmont Shore neighborhood of Long Beach, California. The two-story, Spanish Colonial Revival architecture-style building, built in 1952, is one of the few remaining commercial buildings on 2nd Street that retains its original architectural appearance. It is also the first time in nearly 20 years that this property has been available for sale. The sale price was $5 million.
Hanley Investment Group Executive Vice Presidents Kevin Fryman and Carlos Lopez, along with President Ed Hanley, represented the seller, a private investor from Jackson, Wyoming. The buyer, a private investor from Long Beach, was represented by CBRE Senior Vice President Nathan Holthouser in the firm’s Newport Beach, California office.
The iconic, 8,991-square-foot, 100%-leased building is located on 0.30 acres at the signalized intersection of 2nd Street and Santa Ana Avenue at 5354 East 2nd Street in Long Beach. Citibank is no longer occupying its 5,900-square-foot space on the ground floor. The second floor houses the Arthritis National Research Foundation, Jonnum Media, The Flynn Group and FEA Consulting.
The sale included 20 dedicated parking spaces on the property and has a public parking lot immediately behind the property providing 16 additional spaces as well as street parking along 2nd Street, Claremont Avenue, and Santa Ana Avenue. According to Lopez, a majority of the properties along 2nd Street do not have dedicated parking.
“We generated multiple competitive offers within two weeks of marketing this property,” said Fryman. “We identified a local buyer who understood how valuable the location was and was comfortable with the challenges associated with this beautiful building’s historic designation and the restrictions of the property.”
Lopez added, “Many investors were attracted to the value-add opportunity of re-leasing the ground floor while receiving a stable cash flow.”
2nd Street in Belmont Shore is one of Southern California’s premier shopping and dining destinations with specialty boutiques, restaurants, and exclusive national retailers including Archibald’s drive-thru, Banana Republic, Bank of America, Chase Bank, George’s Greek, Legends Restaurant, Nick’s on 2nd, Open Sesame, Starbucks, Riley’s, Roe and Wells Fargo.
2nd Street has an incredible 91 out of 100 Walk Score, calling it a “Walker’s Paradise,” due to the proximity in all ranking categories including dining, groceries, shopping, errands, parks, schools, culture and entertainment.
Belmont Shore is a supply-constrained, infill trade area, creating high barriers to entry to future development. There are over 362,000 people within a five-mile radius and an average household income of $143,000 within a one-mile radius and an average home price of $1.33 million. Shoppers and residents are within walking distance to the Pacific Ocean and Naples, which has an average household income of $177,000 and an average home price of $1.85 million.
Long Beach is located in the southeastern corner of Los Angeles County. The Port of Long Beach is the second busiest container port in the United States and is among the world’s largest shipping ports. The city is known for its waterfront attractions, including the permanently docked RMS Queen Mary and the Aquarium of the Pacific. Long Beach also hosts the Grand Prix of Long Beach, an IndyCar Series race held on a street circuit, which is the longest-running major street race held in North America. The California State University, Long Beach, one of the largest universities in California by enrollment, is also located in the city.
Hanley Investment Group is currently marketing another historic, high-street asset. Situated at the signalized intersection of Colorado Blvd. and Fair Oaks Ave. in Old Pasadena, the 14,500-square-foot property is 100% leased to internet-proof restaurant tenants including Blue Bottle Coffee, Chef Tony, One Zo Boba, and Paradise Ice Cream. The building is located adjacent to a 901-space public parking garage offering 90 minutes of free parking, a rarity in this area, and only two blocks from the Metro Gold Line station. A popular tourist location, Old Pasadena attracts 15,000 to 20,000 weekend visitors and is ground zero along the Rose Parade Route. The property also benefits from the dense and affluent location with household income over $119,000 and 531,000 people in the trade area.