Redwood West, Panattoni Acquire Long Beach Lifestyle Center
The waterfront property totals nearly 400,000 square feet.
Redwood West, in partnership with Panattoni, has acquired The Pike, a 394,616-square-foot waterfront retail, dining and entertainment lifestyle center in Long Beach, Calif.
SITE Centers Corp. was the seller and announced that the aggregate price was $50 million for its ground leasehold interest and all other interests.
The 18.6-acre site is subject to a ground lease from the City of Long Beach. The parcel also includes a 2,200-space parking structure and the 138-room Hyatt Centric hotel.
READ ALSO: CRE Trends at Mid-Year
The Pike is at 95 S. Pine Ave. and was completed in 2003. It is currently 91 percent leased to a tenant roster that is anchored by Cinemark Theatres and also includes Restoration Hardware, EōS Fitness, Nike Factory Store, H&M, Levi’s, P.F. Chang’s, California Pizza Kitchen and Starbucks.
The buyers said they plan to invest approximately $20 million in improvements, including placemaking efforts, community events, strategic leasing, neighborhood-oriented tenants and experiential programming to attract more visitors and deepen The Pike’s ties to the Long Beach community.
Redwood West will oversee property management, leasing, marketing and operations.
Northmarq Managing Director Bryan Ley and Senior Vice President Tim Kuruzar of the firm’s National Shopping Center Group represented SITE Centers Corp.
Los Angeles retail remains mixed
Retail space in metro Los Angeles had an overall vacancy of 5.7 percent at the end of the first quarter, barely changed from 5.6 percent in the previous quarter, according to a report from Kidder Mathews. Year-over-year, average asking rents have declined by 4.9 percent to $2.77 per square foot. Net absorption has been negative since 2023.
However, the amount of space under construction has declined from 12 months ago, while the average sales price per square foot has surged to $359, Kidder Mathews reported.
Another Los Angeles-area acquisition for the same team came in March, when Redwood West and Panattoni, along with joint venture partners Prime Finance and Prism Places, acquired Victoria Gardens, a 1.2 million-square-foot retail asset in Rancho Cucamonga, Calif., from Brookfield Properties for $530 million. Eastdil Secured brokered the deal, and acquisition financing was provided by an Ares Real Estate fund.
You must be logged in to post a comment.