Newmark[1] announces it has completed the sale of Marina Shores, a 6.17-acre retail shopping center planned for multifamily redevelopment. The property sold for $67.9 million.
Newmark Co-Head of Capital Markets Kevin Shannon, Vice Chairman Bill Bauman, Executive Managing Director Ken White, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein represented the seller Regency Centers, and the buyer, Onni.
“Marina Shores received tremendous interest with over 15 offers,” said Benton. “The demand was driven by the property’s new specific plan (SEASP) conducive for multifamily development, its highly amenitized micro location and the efficiency of hard costs in regard to the scale of the development paired with the high rent growth in the submarket.”
Located at 6500 East Pacific Coast Highway, the property presents unobstructed views of the marina in the Belmont Shore submarket, bounded by Seal Beach to the south and 2nd and PCH to the north. The property is walking distance to 2nd & PCH, a high-end destination retail center delivered by CenterCal in the fall of 2019, offering national, regional and locally grown retailers and restaurateurs such as Whole Foods Market, Urban Outfitters, Lululemon, The Bungalow Kitchen by Michael Mina, Tocaya Organica, Caffe Luxxe, Peloton and more.
Muhlstein added, “Coastal Real Estate coupled with a progressive political landscape shaped a very competitive process. Developers are excited to work with cities that recognize the immense housing shortage and want to make a positive contribution. The size, demand and waterfront location complemented by walkable first-class amenities make this a unique development opportunity.”
Shannon concluded, ““The quality of the capital and the competition for this trophy multifamily site was intense which resulted in a great execution for our client.”
U.S. multifamily sales volume in 3Q21 totaled $78.7 billion, signifying the largest quarterly sales volume figure on record as investor appetite for multifamily continues to surge, according to Newmark Research. Trailing-twelve-month volume totaled $241.9 billion, also an all-time high. 3Q21 effective rent growth rose 5.9%, the largest quarterly increase on record increased to 3.1% on an annualized basis. Increased demand for apartments is projected to support strong levels of rent growth through the end 2022.
