Newmark Knight Frank (NKF) has completed the leasehold interest sale of Airport Plaza, a Class A, two-building office property totaling 121,841 square feet located at 5000 and 5001 Airport Plaza Drive in Long Beach, CA. The asset is adjacent to the Long Beach Airport and was 90 percent occupied at the time of closing by the FAA, Embry Riddle and Advanced Medical Management, among others.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Senior Managing Director Scott Schumacher, Executive Managing Directors Ken White and Sean Fulp, and Managing Director Ryan Plummer represented the seller, funds managed by affiliates of Fortress Investment Group LLC. The buyer, West Coast Capital Partners, was self-represented.
Built in 1983 and 1984 with a full renovation on both two-story buildings in 2016, Airport Plaza is situated on a total of 2.69 acres. The property features a remodeled lobby as well as modern finishes, new interior signage, and lighting upgrades.
According to NKF’s Third Quarter Los Angeles Office Market report, the suburban submarket of Long Beach has a 9 percent vacancy rate.
“This asset is located on an economically favorable long-term ground lease from the City of Long Beach,” said Shannon. “This stabilized investment should produce strong double digit cash-on-cash returns augmented by a favorable new acquisition loan.”
Airport Plaza is in a prime airport-adjacent location and has direct access to the 405 freeway as well as proximity to the 710 and 605 freeways. It is also near numerous restaurants and amenities within a two-mile radius of Douglas Park and the new Long Beach Exchange which features retail, dining, and hospitality amenities.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,000 professionals operate from approximately 480 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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