Boeing Puts C-17 Site Up For Sale
The Boeing Company on November 5 listed its former C-17 Globemaster III manufacturing site for sale. Adjacent to Long Beach Airport, the property is approximately 90 acres, or more than 3.92 million square feet. The listing is being handled by commercial real estate brokerage firm Newmark Knight Frank (NFK). A price has not been set, but NFK Executive Managing Director Bret Hardy said similar industrial properties have sold for up to $70 per square foot, putting a price tag on the Long Beach site as high as $274 million, as reported by The Sun. Hardy went on to say the first round of bids is due by mid-December and that a deal is expected to close by June 2019. NFK declined a request to confirm the report. Long Beach Development Services (LBDS) is in the process of creating a land-use masterplan along Cherry Avenue between Spring and Carson streets, including the C-17 site, and along portions of Spring Street. Based on community feedback, the C-17 site has been identified as a location for a business park. Other portions of the corridor have been identified as locations for industrial, office and retail uses.
Planning Commission OKs Breakers Conversion To Hotel
The Long Beach Planning Commission voted unanimously on November 15 to approve the conversion and renovation of The Breakers, previously a senior care facility, into a 185-room hotel with food and beverage venues, banquet and meeting areas, and other amenities. While maintaining as much of the historical architecture as possible, the project will bring the building up to date on all safety and Americans with Disabilities Act regulations. The Sky Room restaurant is also being completely renovated and will reopen with the hotel. Cielo, a rooftop bar, is being expanded across the entire roof and will be rebranded with a new name. Steve Goodling, president and CEO of the Long Beach Area Convention and Visitors Bureau (CVB) and other CVB staff voiced support for the project during the public comment period of the meeting, noting the benefits it would bring to the hospitality and tourism industry. Goodling said plans for the new hotel have already attracted new conventions to the city, adding that conventions generate millions of dollars in tax revenue for the city annually. Members of hotel union Unite Here Local 11 and the Long Beach Coalition for Good Jobs & a Healthy Community, a branch of the pro-labor nonprofit Los Angeles Alliance for a New Economy (LAANE), spoke in opposition of the project, citing unmitigated environmental impacts, accessibility issues and a lack of community benefits. Unite Here Local 11 has a history of protesting hospitality-related developments that do not include project labor agreements.
Courtyard Long Beach Airport Hotel Sold
The Courtyard Long Beach Airport hotel, a Marriott International Inc. brand, sold for an undisclosed amount, CBRE Hotels announced November 12. CBRE’s Rod Apodaca represented the buyer, Arizona-based Harbor Hotels LLC, an affiliate of Cornerstone Hotel Group LLC. Mach II Chartres Long Beach LLC was the seller. The 159-room hotel is located at 3841 N. Lakewood Blvd. in Douglas Park, adjacent to the Long Beach Exchange retail center. “The Long Beach hotel market has been doing very well. This hotel is in an exceptional location, plus the quality of the Marriott brand was a major factor in the buyer’s decision-making process. The combination of these factors has contributed to the hotel’s preeminent position in the market,” Apodaca stated. “Long Beach is a great turnaround story as it’s increasingly considered a great alternative on many levels to the often more costly Los Angeles market. That also makes it a very appealing option for hotel investors.” According to the 2019 Southern California Lodging Forecast by CBRE Hotels, occupancy and average daily rates for Long Beach hotels are expected to increase.
American Gold Star Manor Site Nears Completion Of Mass Renovation
The $56 million renovation of American Gold Star Manor is nearly complete five months ahead of schedule and on budget, according to President and CEO Terry Geiling. Located at 3021 Gold Star Dr. in Long Beach’s upper westside, the affordable housing community is home to approximately 400 people, one-third of whom are veterans, Geiling told the Business Journal. Ten residential buildings, community buildings, the pool area, Gold Star Drive and landscaping were all updated as part of the project. The first priority was resident safety, Geiling said, which included new elevators, fire safety systems, Americans with Disabilities Act compliant entryways, security cameras and keyless electronic doors. Conservation was another focus of the project, including 200,000 square feet of grass being replaced by drought-tolerant plants, solar panel installation, double-pane insulated windows and patio doors, and energy efficient appliances and lighting. “Every roof in this place is covered with solar panels, not only for electrical generation but also for a hot water,” Geiling said. “We’re probably about 80% self-sufficient on electricity now.” The recreation hall now doubles as a Red Cross-certified evacuation center, and has its own backup generators.
The property was first developed during World War II when the U.S. Navy constructed hundreds of temporary barracks to house the families of servicemen and shipyard personnel. Following the war, a portion of the land was deeded to the American Gold Star Mothers, a national organization of women who have lost sons and/or daughters in the service of the U.S. military. The nonprofit corporation American Gold Star Manor was founded shortly thereafter to own and manage the property. In 1975, the U.S. Department of Housing and Urban Development granted the corporation a 40-year mortgage loan to raze the barracks and build the 348-unit complex that exists today. Of the campuses 25 acres, Geiling said there are eight acres that are likely to be developed into additional affordable housing in the future.
Building Material Supplier Signs Lease In Carson, Leaving Long Beach
Houston-based building material supplier Action Gypsum signed a more than eight-year lease for 53,699 square feet of industrial space at 1225 E. Artesia Blvd. in Carson, The Klabin Company announced on November 9. According to an Action Gypsum employee, the company will vacate its Long Beach space at 1501 W. Wardlow Rd. by December 1. Klabin’s Senior Managing Principal David Prior, Managing Principal Frank Schulz and Executive Vice President and Principal Todd Taugner represented the building owner, Overton Moore Properties, in the 99-month lease, which is valued at nearly $5 million. “We are proud to able to represent a best-in-class owner of industrial real estate. Overton Moore’s commitment to providing a fully maintained and refurbished building was key to the success of this transaction,” Prior stated. “Enhanced image, expansive yard, 22-foot clear height, eight dock-high doors and freeway frontage are some of the amenities that were attractive to Action Gypsum. This is a win-win for both parties.” Action Gypsum will utilize the new space for wholesale drywall sales and construction supplies, and as a distribution warehouse for the Western United States.
More Real Estate Transactions
The following is a list of transactions recently closed in Long Beach by agents at Lee & Associates and Marcus & Millichap’s Bogie Investment Group:
- 1333-1351 Orizaba Ave. Industrial Condominiums – Lee & Associates Principals Brandon Carrillo, Jeff Coburn and Garrett Massaro represented the seller, 1351 Orizaba Ave LLC, in the more than $1 million sale of unit 1333 to GLR Properties LLC. The deal for the 4,400-square-foot industrial condo closed on October 19. The tenant plans to use the space as an office and classic car collection display, according to Carrillo. Two other units totaling 7,405 square feet are in escrow. The six remaining units total 39,478 square feet.
- 2789 Long Beach Blvd. – Lee & Associates Principals Jeff Coburn and Shaun McCullough represented landlord 2H Property in the 10-year, 8,947-square-foot lease to Fresenius Medical Center. Justin Cheung of Realty Advisory Group represented Fresenius.
- 429 Magnolia Ave. – Steve “Bogie” Bogoyevac and Derek Caldwell of Marcus & Millichap’s Bogie Investment Group represented the owner in this $1,225,000 sale. The five-unit asset consists of a four-bed, two-bath front house and two rear duplexes, each with one-bed, one-bath units. One of the units has been fully renovated, the duplexes have new copper plumbing and all buildings were recently painted.
- 5209 E. 2nd St. – Shoe and apparel store Proper has signed a lease for the former Romance Etc. location in Belmont Shore, according to Belmont Shore Business Association Executive Director Dede Rossi. The facade of the building has been painted white, a stark contrast from the former burgundy color. The location is the brand’s second in Long Beach, with a third in Houston. The owner did not respond for comment as to when the new location would open for business.
- The Terminal at Douglas Park – With the signing of two transactions and one more on the way, The Terminal is nearing full occupancy, according to Coburn. Kollin Altomare Properties recently purchased three units on the ground floor of building four totaling 6,926 square feet. Additionally, European multinational car rental company “Sixt rent a car” signed a 10-year lease on the ground floor of the same building totaling 5,205 square feet. Coburn added that there is a buyer going under contract for the top floor of building four, which would bring the office condominium development to full occupancy. Coburn and Lee & Associates Principal Shaun McCullough represented the landlord, Douglas Park Investments LLC.
Housing Development Planned For Former North Library Site
The Long Beach City Council voted unanimously on November 13 to authorize the sale of the former North Branch Library at 5571 Orange Ave. to the Long Beach Community Investment Company (LBCIC) for $729,000. The LBCIC, a nonprofit organization established by the City of Long Beach, is proposing to acquire the 15,375-square-foot property and release a request for proposals to develop affordable rental or for-sale housing. “The city council’s action is an important step for the neighborhood to move forward with the former North Library site, which has been closed for more than two years,” 8th District Councilmember Al Austin stated following the vote. “The LBCIC’s proposal is consistent with the residential nature of this neighborhood on Orange Avenue, and it will provide much-needed affordable housing units, as Long Beach is working to address a housing crisis due to a shortage of housing supply.” The councilmember’s statement also noted that six, two-story units are anticipated for the site. As part of the agreement, LBCIC is leasing the property back to the city for 18 months at no cost for use by the Long Beach Health and Human Services Department’s Center for Families and Youth, and possibly as a winter shelter from December 1 to March 31 of next year.
New Shoe And Sports Apparel Store Opens In North Long Beach
Shoe Palace celebrated the opening of its first Long Beach location at 5365 Long Beach Blvd. on November 3, according to Store Manager Jestin Parker. The store carries nearly 100 different brands of active footwear and apparel, including its own line of merchandise. The Long Beach store is the company’s 137th nationwide. “[The company] felt like North Long Beach needed something where it could start an ecosystem,” Parker said. “The area needed [a place] where people could rejuvenate the city back to where it should be.” Inside the store is a large mural of Long Beach rap icon Snoop Dogg by artist JC Ro. Parker noted that Shoe Palace has a contract with JC Ro to create murals in its stores that pay homage to their locations. In January 2017, for example, Shoe Palace took over the space of the original Apple Store in Palo Alto where JC Ro created a Steve Jobs mural. In the two weeks since opening, Parker said foot traffic is steadily increasing as more people in the community realize the store is open. Three doors down is Black Ring Coffee, which is cross-promoting with Shoe Palace to continue increasing business, Parker said.
Sandwich Chain Jimmy John’s Opens Second Long Beach Location
Long Beach’s second Jimmy John’s sandwich shop opened at 2031 E. Spring St. on the border of Signal Hill, the company announced November 6. “Our team is excited to serve fresh, fast and tasty sandwiches to a new set of customers in the area,” owner Bryant Tower stated. “We’re also excited for our customers to try our new products, including the 9-Grain Wheat Sub, Kickin’ Ranch®, sliced pickles and our 16-inch Giant sandwiches.” Tower anticipates hiring around 20 employees.
CSULB Celebrates Opening Of New Energy Efficient Building
California State University, Long Beach, celebrated the grand opening of its new state-of-the-art building for the College of Continuing and Professional Education (CCPE) on November 7. The 35,000-square-foot building consists of 20 classrooms featuring furniture that is on wheels to allow for customized room configurations depending on the curriculum and the time of year, according to the school. The nearly $31.9 million project was self-funded by CCPE student enrollment fees. The development is the first net-zero energy classroom building in the California State University system and was designed to achieve a LEED Platinum rating, the highest level of international certification by the U.S. Green Building Council. The net-zero design will not be realized until solar panels are installed on the roof over the next several months.
Proposed Charter School Denied By County, Coming Back To LBUSD
Despite a recommendation by Debra Duardo, superintendent of the Los Angeles County Office of Education, to approve the establishment of We The People Public Charter High School (WTP) in Long Beach, the petition failed to pass the L.A. County Board of Education on November 6. According to the office of education, the board’s vote was 3-2 against the petition, with two members absent. Four votes are required for action to be taken, the office added. The WTP petition was denied by Long Beach Unified School District (LBUSD) earlier this year.
On Friday, November 16, WTP Executive Director Anita Ravi notified LBUSD of her intent to bring the petition back to the local level, rather than appealing to the California State Board of Education. “We’d be better off having local authorization rather than state authorization,” Ravi told the Business Journal.
If approved, Ravi said the charter school would be located in North, Central or West Long Beach, though she said ideally it would be in the northern part of the city. “We see that many more students on that side of town are not being adequately prepared for college and for career, and that’s shown in all of the student achievement data,” she added.
The school has been actively looking for a space to lease since August, Ravi noted. To open, the school would need to lease approximately 10,000 square feet to accommodate an initial enrollment of 80 ninth grade students. Each year, the school would add a new class of 100 students for a total enrollment of 400 students after four years. Ravi added that eventually she would like the school to be 40,000 square feet.
“We are taking into consideration all of the exciting changes in zoning that are coming, especially in North Long Beach. There’s a lot of creativity that goes into making sure we have the right kind of space for our students,” Ravi said. “We’re looking for a space that can be made to attract students and families.” WTP would be the city’s third charter school and would focus on government, politics, journalism, media, business, environmentalism and other areas that “hold us together as a society,” Ravi said.