California Long Beach office tower trades for $86M to Solly Assa

  (photo credit: Solly Assa)
(photo credit: Solly Assa)

Real estate experts and institutions believe that 2022 will be another record year for the industry. With positive signs of growth for the commercial real estate market and with demand for residential real estate continuing to outpace the supply of residential properties — resulting in an increase in prices, the real estate market has gotten off to a strong start in 2022. 

While some people are attached to the habits they formed during work from home quarantine periods, most people are ready to get back into the office. A 2021 Harvard study shows that 81% of people want to go into the office at least a few days a week. 

This bodes well for real estate investors like Solly Assa. As a prolific real estate entrepreneur, investor, and developer who is betting on commercial real estate in large suburban towns and small cities, the leader of Assa Properties has projects across both residential and commercial markets in some of the most desirable American suburbs and cities. Assa understands that many professionals moved out of the major cities throughout the course of the pandemic and that many businesses have followed in order to accommodate their employees. As major corporations have no choice but to follow the workforce’s preferences, most of these corporations are in the market for new office spaces. This is why Assa is particularly excited about cities such as Long Beach, CA. 

Parallel Capital Partners has sold to Assa Properties Inc and Jack Sitt real estate LLC the 410,920-SF, class A, LEED Gold-certified property, Shoreline Square, which is currently 92% leased 

LONG BEACH, CA – Commercial real estate investment and operating company, Parallel Capital Partners has sold a class A, 410,920-square-foot office tower in downtown Long Beach, CA to Shoreline Square Holdings LLC for $85.5 million, the buyer and Co managers The buyer and co-managers are Jack Sitt Real Estate, along with Isaac and Solly Assa, founder of Assa Properties Inc.

The LEED Gold-certified property, Shoreline Square, is 92% leased. The property is 52% leased to US government and municipal tenants, including US Customs, CA State Land Commission, Department of Defense, CA Coastal Commission and ATF, which have an average commitment of more than 28 years, with more than 10 years of weighted average lease term remaining.

Of the property’s tenants, 69% maintain an investment-grade credit rating and represent the government, banking, shipping, software/technology, energy, insurance, legal and professional service industries.

Situated at 301 E. Ocean Blvd., Shoreline Square offers onsite offerings including Jersey Mike’s, Comeria Bank, Café 301, Corporate Concierge and direct access to the Westin Long Beach.

Parallel Capital Partners originally acquired Shoreline Square in 2014.

The tower is located directly across the street from a metro station and adjacent to the Port of Long Beach and Los Angeles. The property is situated near the Long Beach Airport, the 710 Freeway, 405 Freeway and 110 Freeway.

Representing the seller in the transaction was Newmark’s co-head of US capital markets Kevin Shannon, executive managing directors Ken White and Rob Hannan, and senior managing director Laura Stumm.

The buyers “Solly Assa, Isaac Assa and Jack Sitt“  were attracted to the numerous credit government tenancies in this asset and the attractive cash on cash returns produced by a favorable debt market as well as the substantial discount to replacement cost,” says Shannon.

“Downtown Long Beach has seen over $2 billion in investment over the last decade and has a robust future commercial and residential development pipeline,” says Stumm. “Corporations and government tenants alike have recognized the relative value that this market provides, as reflected by the tenure of the tenancy at Shoreline Square.”

We are excited to see where Assa and his team invests next. 

This article was written in cooperation with Assa Properties