JPI Secures Financing for Long Beach Apartments

A vacant shopping center in Long Beach is one step closer to multifamily redevelopment.

Texas-based developer JPI locked down an $88.4 million construction financing package for the site from Tokyo Tatemono U.S. and BMO Bank, Commercial Observer reported.

JPI, which was purchased by Sumitomo Forestry America a few years ago, plans to redevelop part of the former City Place mall, at 450 The Promenade North, into a 272-unit mixed-use building. The financing works out to $325,000 per unit.

Of the 272 units, 16 would be set aside for affordable housing. The building will have about 18,841 square feet of ground-floor retail space.

The project, called Portico, represents the first phase of Mosaic, the 14-acre redevelopment of the defunct City Place mall. The property’s previous owner, Shooshani Developers, defaulted on a $63 million linked to the property in 2020. Turnbridge Equities, Waterford Property Company and Monument Square Investment Group took ownership the following year.

The three entities still plan to move forward with most of the Mosaic redevelopment. The project calls for 900 multifamily units and 38,000 square feet of commercial space. The group sold the Portico parcel of the property to JPI last year for $14.7 million. JPI previously referred to the location as Jefferson Long Beach. Construction on Portico is expected to be completed in 2028.

Retail repositioning abounds in Long Beach.

Last month, CenterCal Properties and DRA Properties bought Long Beach Towne Center for $145 million. The 870,000-square-foot mall is located about 10 miles northeast of the Mosaic site. The seller, Vestar, developed the center in 1999. CenterCal and DRA plan to revamp the property with pedestrian walkways, lighting, landscaping, public art, year-round programming, parking and a leasing effort driven by experiential retail.

Another retail center in Long Beach, Long Beach Marketplace, secured a $56.3 million refinancing deal last month, owner Mamo Company told The Real Deal. LoanCore Capital Real Estate Investment Trust provided the funding.

— Chris Malone Méndez