NEWPORT BEACH \u2014 Coming off a half-billion-dollar acquisition of the Inland Empire\u2019s premier lifestyle center, Redwood West and Panattoni Development are making another big bet on experience-driven open-air retail, this time in Long Beach.<\/p>\n
The Orange County-based joint venture acquired Long Beach\u2019s iconic 370,000-square-foot shopping center, The Pike, from SITE Centers, an Ohio-based real estate investment trust, for $50 million.<\/p>\n
According to CoStar, it\u2019s a ground lease deal in which the joint venture is leasing the land from the landowner. It explains why the price, about $135 per square foot, is well below comparable nearby retail sales. In January, for example, South Carolina-based retail investor Edens acquired the 246,000-square-foot LBX \u2014 Long Beach Exchange for $134 million, or about $547 a square foot.<\/p>\n
Newport Beach-based Redwood West, whose portfolio includes Lido Marina Village and Peninsula Village, and Irvine-based Panatonni plan to sink another $20 million into the 14-property waterfront destination ahead of the LA28 Summer Olympic Games.<\/p>\n
\u201cThe Pike\u2019s premier waterfront location is truly one-of-a-kind and irreplaceable,\u201d John Pomer, co-founder and managing partner of Redwood West, told the Business Journal. \u201cThe Pike has strong bones that we believe we can elevate to the next level through targeted lease-up and tenant repositioning, placemaking in common areas, events and activations, and elevating the overall aesthetic of the property.\u201d<\/p>\n
Summer Olympic Events Planned for Long Beach Venues<\/p>\n
Built in 2003, The Pike spans about 25 acres along Long Beach\u2019s downtown waterfront and sits next to the Long Beach Convention Center and the Aquarium of the Pacific.<\/p>\n
The center is currently 91% leased, which is about 5% higher than other shopping centers in the city, according to the Downtown Long Beach Alliance.<\/p>\n
Current tenants include Cinemark, Nike Factory Store, H&M, Levi\u2019s, E\u014dS Fitness, Restoration Hardware, P.F. Chang\u2019s, California Pizza Kitchen and Starbucks.<\/p>\n
Redwood West officials say the center draws about 7 million visitors each year with more foot traffic expected when the Summer Olympics hit Long Beach in two years.<\/p>\n
The city is hosting 11 events including men\u2019s and women\u2019s beach volleyball in Alamitos Bay, water polo at the Long Beach Aquatics Center and handball at the Long Beach Arena.<\/p>\n
Many of these venues are near The Pike shopping center.<\/p>\n
The city is also pouring nearly $1 billion into capital investments and improvements in the surrounding areas through its Elevate 28 Infrastructure Investment Plan to prepare for the Olympics.<\/p>\n
Open-Air Retail<\/p>\n
The purchase underscores investor demand for open-air centers with restaurants, entertainment and community events instead of enclosed malls.<\/p>\n
Pomer said that consumers are \u201cchoosing destinations over transactions.\u201d<\/p>\n
\u201cThe Pike has all of the right fundamentals that we look for, which includes a premier waterfront location, strong visibility, strong surrounding momentum with the city of Long Beach\u2019s initiatives, and a strong residential development pipeline with a growing population base,\u201d he added.<\/p>\n
This is the joint venture\u2019s second big retail purchase this year.<\/p>\n
In March, they bought the 1.2-million-square-foot Victoria Gardens in Rancho Cucamonga for $530 million.<\/p>\n
The Pike Improvements<\/p>\n
Rather than undertake a sweeping overhaul of The Pike, Pomer said Redwood and Panattoni plan to elevate the property through targeted improvements aimed at reinforcing its position as a premier gathering place.<\/p>\n
Visitors can expect enhanced common areas, a new central courtyard, an event lawn, updated digital signage, refreshed landscaping and an overall modernized look.<\/p>\n
\u201cWe will create immediate leasing momentum through the lease-up of current vacant space, with a thoughtful re-tenanting as leases naturally expire,\u201d Pomer said.<\/p>\n
Redwood West said it plans to make the most of the property\u2019s waterfront location by adding more events and activities to attract both residents and tourists.<\/p>\n
\u201cBy leaning into the waterfront positioning of the asset, elevating the existing tenant mix, and by bringing events back to The Pike to give the community a reason to engage,\u201d Pomer said when asked how the center can stand out amid growing competition for dining and entertainment dollars.<\/p>\n
Pomer believes the property will have a new identity in five years.<\/p>\n
\u201cThe Pike will be a central gathering place for both the community and visitors to Long Beach alike who will be able to experience a strong mix of restaurants and shops along Long Beach\u2019s iconic waterfront,\u201d Pomer said.<\/p>\n","protected":false},"excerpt":{"rendered":"NEWPORT BEACH \u2014 Coming off a half-billion-dollar acquisition of the Inland Empire\u2019s premier lifestyle center, Redwood West and…\n","protected":false},"author":2,"featured_media":396649,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[131,133,132],"class_list":["post-396648","post","type-post","status-publish","format-standard","has-post-thumbnail","category-long-beach","tag-long-beach","tag-long-beach-headlines","tag-long-beach-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/396648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=396648"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/396648\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/396649"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=396648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=396648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=396648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}