By Jon Peterson
A local Southern California owner group is looking to test the market with a fully-leased retail property in Seal Beach that it has owned for a few years. According to the property’s offering document, Brea-based Sunset Beach Properties is planning to sell its 19,354-square-foot Pacific Gateway Plaza, mostly retail property located at 2311 to 2399 Seal Beach Boulevard. The asset has been placed on the market for sale with a $14.2 million asking price, or roughly $734 per square foot.
Sunset Beach Properties has held title to the asset for more than five years. According to public documents, it purchased the property in March 2017 for $10.6 million. The listing agent on the current sale of the property is CBRE, which is working with representatives out of its office in Los Angeles. Alex Kozakov and Patrick Wade, both senior vice presidents with the company, are part of the team marketing the asset for the landlord. CBRE did not respond to an email or phone call for this story.
The asset has no vacancies at this time. The tenants in the property include a mixture of corporate, medical office and retail tenants. The largest office tenant in the property is Charles Schwab. This occupant has a lease that totals 5,400 square feet or almost 28 percent of the property. This tenant has been in the property since December 2012, and its lease expires in November 2025.
The retail tenants in the property include Starbucks and Subway. The Starbucks lease is for 1,700 square feet with a lease that will not expire until February 2028. One of the medical tenants is Goodlife Physical Medicine, which has a lease of 3,000 square feet, or roughly 15.5 percent of the total property. Its lease started in May 2021 and runs out in April 2026.
According to the property’s offering document, the property has three separate parcels that would allow the new owner to take on various disposition strategies. One of the parcels is the Pacific Gateway Shops, which is 10,554 square feet. According to the scenarios outlined in the offering document, this part of the property could be sold for approximately $6 million with a cap rate of 5.5 percent. The Charles Schwab space could be sold for $5.7 million at a cape rate of 5 percent. The Starbucks/Enhance Dental space could be sold for $3.7 million with a cap rate of 4.5 percent.
Pacific Gateway Plaza was first constructed in 2009. It is located adjacent to the Boeing Space Complex and the 110-room Hampton Inn and Suites hotel. Within blocks of the property is a mixture of major employers and points of interest. This includes the Naval Air Station Seal Beach, the 542-acre Leisure World senior community and the Seal Police & Fire Departments along with the City of Seal Beach offices.
