Lincoln drops $70M on Manhattan Beach office for resi redev

"Lincoln Property Company purchased a five-story Manhattan Beach office building on the Rosecrans Avenue corridor with multifamily redevelopment plans. The Dallas-based firm paid $70 million, or $569 per square foot for the 123,000-square-foot building. The seller is Continental Development Corporation; the firm's president of development, Alex Rose, signed the grant deed dated mid-October. The deal involved $45 million in seller financing, according to a deed of trust signed by Southern California Lincoln Property executive Rob Kane."

"The office property at 1500 Rosecrans Avenue is near Manhattan Village, a shopping mall, and many other retail spots and restaurants. It's part of a commercial center that spans parts of El Segundo and Manhattan Beach. The Beach Cities office submarket, which encompasses Manhattan Beach, Hermosa Beach and Redondo Beach, has a 15 percent vacancy rate. That is lower than all of South Bay's 23.5 percent vacancy rate, according to CBRE."

Lincoln Property Company acquired a five-story, 123,000-square-foot office building at 1500 Rosecrans Avenue in Manhattan Beach for $70 million, about $569 per square foot. The seller was Continental Development Corporation, and the transaction included $45 million in seller financing per a deed of trust. Berkadia brokered the sale and indicated the offices will be demolished and replaced with apartments. The property sits near Manhattan Village and a commercial center spanning El Segundo and Manhattan Beach. The Beach Cities office submarket has a 15 percent vacancy rate, lower than South Bay's 23.5 percent and downtown Los Angeles' 33.3 percent. Manhattan Beach home values average $3 million and rents average $5,500 per month.

Read at therealdeal.com