Tova Capital, a Los Angeles-based real estate and development company, has acquired the Central Long Beach retail complex occupied by Trademark Brewing and climbing gym Long Beach Rising in a $6.2 million off-market transaction, the company announced on Monday.
The fully occupied 34,500-square-foot retail complex is located on a nearly 1-acre site at 205-233 E. Anaheim St. between Long Beach Boulevard and Pacific Avenue.
Trademark Brewing and Long Beach Rising, both of which occupy approximately 17,000-square-foot single-story buildings, are under long-term leases, according to Tova Capital.
The property is also situated across the street from two recently completed senior and affordable multifamily housing projects and is adjacent to a future 36-unit townhome development. Tova officials said Long Beach’s Midtown Specific Plan, where the complex is located, has succeeded in its goal to make the area more attractive to investors.
“The Downtown and Midtown Specific Plans have done their job of luring institutional investors and developers to build much needed quality housing in the submarket including market-rate, affordable and senior housing,” said Ron Harari, president and CEO of Tova Capital in a statement. “Our tenants will continue to benefit from the new residents moving into the area.”
The Midtown Specific Plan and Downtown Plan have led to over 2,100 housing units being built over the past five years in or near Downtown.
Retail rents in Long Beach have grown by 2.2% over the past 12 months, and in Downtown Long Beach in particular, retail rents are 30.9% higher than they were a decade ago, according to Tova Capital vice president Zach Boren.
“This was a tremendous opportunity to acquire a cash-flowing retail asset at a very low basis,” said Boren in a statement. “Given the challenging credit markets, we were able to secure attractive seller financing, which allowed the deal to make sense in a market with few transactions occurring.”
Tova Capital plans a long-term hold of the retail property, which is its first investment in Long Beach.
Jared Swedelson from NAI Capital represented Tova, while the seller was represented by Sheva Hosseinzadeh from Coldwell Banker Commercial BLAIR.
Founded in 2017, Tova Capital focuses on rehabilitating older industrial and office buildings, entitling land for higher and better uses and constructing ground-up development.
Tova manages all aspects of the development process including acquisition, construction, financing and disposition.