By Lilly Riddle
A redevelopment site in the middle of Downtown Long Beach has hit the market, presenting an opportunity for investors to establish themselves in Los Angeles. The property, located at 335 Pacific Ave. and listed by Colliers, is fully entitled for the construction of a 141-unit apartment building, with 110 of those units designated as micro-units. The property is currently unpriced.
The 116,49-square-foot proposed multifamily apartment building, which sits on a lot of 15,000 feet, currently houses a 9,726-square-foot hotel and motel that generates income, offering potential investors a way to offset holding costs during the redevelopment process. The proposed development, which has already received full entitlements, includes a mix of micro-units and larger apartments, catering to a range of potential tenants. The micro-units, in particular, are expected to appeal to younger residents who are looking for affordable housing options in an urban setting, according to the marketing flier from Colliers.
The property’s central location includes a short walk to the beach, public transportation and a wide array of shops, restaurants and entertainment venues. The existing hotel/motel is currently generating income, providing a potential revenue stream for investors during the redevelopment process. The project will include amenities such as a courtyard, rooftop deck and recreation rooms, as well as the hotel’s Dolly Varden sign atop the new building.
According to Urbanize, the 1929 Varden Hotel in Downtown Long Beach was demolished last year to make way for the new building, which was designed by Studio One Eleven. The construction was made possible by a 2022 city council decision allowing micro-unit apartments. The project is expected to begin construction this year.
The multifamily and apartment building real estate market in Long Beach is experiencing a period of transition and adjustment, according to industry reports. While nationwide multifamily sales are declining and interest rates are rising, Long Beach continues to attract investors due to its relatively affordable prices and high demand for rental housing. However, there has been a significant slowdown in sales volume, accompanied by notable price reductions as buyers anticipate further price drops. However the market remains resilient, with value appreciation outpacing the decrease in transactions, particularly in the fourplex segment.
Mark Tarczynski and Mick Moody of Colliers are leading the marketing efforts for this property.
