UPDATED, 8:30 a.m., Aug. 17: Anaheim-based investment firm Milan Capital Management just bought a 119,517-square-foot office building in Long Beach for roughly $26 million, or about $218 per square foot, The Real Deal has learned.
Dubbed Park Tower, the seven-story Class A complex at 5150 Pacific Coast Highway was 93 percent leased at the time of the sale.
The seller, New York-based investment bank Investcorp, previously acquired the property for $21.5 million in 2011 under the entity Park Tower LLC.
Jeffrey Cole, Ed Hernandez and Nico Napolitano of Cushman & Wakefield’s represented Investcorp in the transaction.
The office currently has 20 tenants. Two of its largest tenants, ChildNet Youth and Family Services and Argus Medical Management, recently signed long-term lease renewals.
Napolitano said Milan Capital plans to hold onto the building with no major changes planned. Strong market fundamentals, good location and “timeless” architecture were all factors that drove the sale, he added. The firm recently sold its office headquarters at 888 South Disneyland Drive in Anaheim for $26.5 million.
“It’s actually a pretty good deal for Long Beach,” he told TRD.
The average price per square foot for the Long Beach submarket this past year is $224, according to CoStar.