A Cypress-based private investor has acquired the retail heart of Downtown Long Beach’s Mosaic district, betting that below-market rents and a partially vacant rent roll leave room to push value in one of the city’s most closely watched mixed-use redevelopments.
Allied Commercial Investments has purchased Mosaic, a six-building retail portfolio spanning multiple city blocks in Downtown Long Beach, for $30 million, according to CBRE, which arranged the sale. The transaction, which closed on July 13, 2026, according to CoStar, transfers roughly 148,405 square feet of gross leasable area across The Promenade and The Shops on Pine to a private buyer, working out to approximately $202 per square foot.
The seller was a joint venture of Waterford Property Company, Monument Square Investment Group and Turnbridge Equities, according to CoStar. That partnership assembled the broader Mosaic site earlier this decade, with Monument Square first gaining control in March 2021 through the acquisition of a non-performing senior loan. The retail buildings changing hands sit at the center of a roughly 14-acre mixed-use redevelopment that the venture has been reshaping around residential, retail and creative office uses.
The portfolio was 78 percent occupied at the time of sale, leaving the new owner both in-place cash flow and a clear value-add runway. Marketing materials for the district’s dominant retail block, the roughly 78,269-square-foot Promenade segment addressed at 300-325 The Promenade North, noted that in-place rents ran approximately 16 percent below market, according to a LoopNet listing for the property. The six buildings include addresses at 225 3rd Street, 50 4th Street, 303 and 307 The Promenade, and the Griffis Pine Avenue building at 480 Pine Avenue, according to CoStar.
CBRE’s Retail Investment Properties – West team, led by John Read and Erin Smith, represented the seller, while Robert Wasserman, principal at Wasserman Commercial Real Estate, represented the buyer. The marketing campaign drew 9,635 web views and 681 downloads of the offering memorandum, generating 14 offers across the six-building portfolio, according to CBRE. That depth of bidding underscores continued investor appetite for well-located, value-add retail in coastal Southern California, even as buyers remain disciplined on price.
The pricing tells its own story about where the retail market has settled. At roughly $202 per square foot for a portfolio nearly a quarter vacant, the deal reflects a discount to fully stabilized coastal retail, giving Allied Commercial Investments room to lease up the remaining space and mark rents to market. For a private buyer, that combination of scale, walkable urban location and embedded upside is difficult to replicate through single-asset acquisitions.
Mosaic occupies a strategic position in Downtown Long Beach, dissected by The Promenade, a six-block pedestrian corridor that runs from the district north toward the Long Beach Convention Center to the south. The retail is woven into an open-air environment that the seller’s partnership has been repositioning with a wave of food-and-beverage tenants, including Broken Spirits Distillery and Restaurant, the Levantine concept Ammatoli, specialty sake retailer Sake Secret and Coffee Station Café, according to Waterford Property Company. The district also hosts weekly farmers markets and signature events such as Taste of Long Beach.
The surrounding redevelopment has been active. In May 2024, national multifamily developer JPI acquired a 1.58-acre parcel within the Mosaic site for its Jefferson Long Beach project, a 272-unit apartment community that includes 16 affordable units and roughly 19,000 square feet of ground-floor commercial space, according to Waterford Property Company. The broader entitlement contemplates approximately 900 residential units alongside retail and office space, positioning the newly traded retail as the commercial spine of a growing residential base, adding rooftops and daytime foot traffic that directly support the storefronts.
The deal lands in a Los Angeles retail market defined by tight supply. The region closed the first quarter of 2026 with an availability rate of 6.2 percent, unchanged from the prior quarter, according to CBRE’s Los Angeles Retail Figures for Q1 2026. That scarcity of available space has helped sustain landlord pricing power and kept value-add retail plays like Mosaic in demand, particularly in dense, transit-adjacent submarkets where new construction is limited.
For Allied Commercial Investments, the acquisition offers a rare opportunity to control the retail core of an evolving downtown district in a single transaction. Execution will hinge on leasing the vacant space and capturing the gap between in-place and market rents, but the buyer inherits a portfolio already benefiting from momentum generated by its former owners.
