A portion of the Airport Plaza business park in Long Beach has recently been placed on the market, offering a potential buyer 126,219 square feet of office space. According to the listing by Newmark, the property has an asking price of $31.5 million, or about $250 per square foot.
The property consists of two buildings located at 5000 & 5001 Airport Plaza Drive. The buildings are situated on 2.69 acres and were initially built in 1983. Public records show that the property was last purchased for an undisclosed amount in 2017 Newport Beach-based investor Bixby Land Company.
Currently, the property is 98 percent occupied by a diverse mix of tenants, including Advanced Medical Management, Select Physical Therapy and the U.S. Federal Aviation Administration, among others. According to Newmark, remaining lease terms average 4.5 years.
“The project’s strong credit tenant roster represents a diversity of industries including the federal government (FAA), professional services, logistics, and education. Airport Plaza’s 46-year ground lease includes terms that are highly favorable with no Fair Market Value increases and below market payments representing only 5.3 percent of the total project’s collected gross rents,” the offering memorandum states.
The property is centrally located within the city of Long Beach, adjacent to the Long Beach Airport. The property also maintains easy access to Interstate 405, providing quick commutes throughout Los Angeles and Orange County.
While office vacancies across Los Angeles remain high at over 19 percent, Newmark continues to arrange sales for similar properties in Long Beach. In February, the brokerage firm announced two office building sales in the Long Beach submarket. In one acquisition, Pacific Rim acquired Shoreline Square, a 410,920 square-foot tower in downtown Long Beach, for $85.5 million, or approximately $208 per square foot. In another transaction, Holland Partners acquired Congressional Place, a two-story, 73,769-square-foot office building, for $41 million, or $555 per square foot.
Newmark did not respond to a request for comment.
