Miami firm offloads fully occupied Airport Plaza at $218 per square foot
Long Beach’s office market could continue to see transaction activity with LNR Partners marketing a fully leased office campus that reflects both the area’s transformation and the current appetite for stabilized assets with favorable financing.
Miami-based LNR Partners has listed Airport Plaza, a two-building office campus at 4900 and 4910 Airport Plaza Drive, for $32.92 million. Newmark is handling the sale of the 150,727-square-foot property, which sits on 5.44 acres and includes 768 parking spaces. The 1987-vintage buildings underwent renovation in 2019 and currently house seven tenants across three stories. According to the listing, the campus is 100 percent occupied, with lease terms averaging 6.4 years and only 15 percent of space rolling over in the first five years. Current tenants include the City of Long Beach, Optum California (formerly Healthcare Partners), Food Allergy Institute and Traffic Management Inc.
Brokers point out that the asking price translates to $218 per square foot, well below the estimated replacement cost of over $500 per square foot. The seller has completed more than $12.5 million in capital improvements, including HVAC systems, elevators, roofs, and common area upgrades. A key feature of the offering is an assumable loan with a 3.988 percent interest rate and a balance of $19.89 million, representing 60 percent loan-to-value at the asking price. The loan, which originated in November 2020, matures in October 2030 with 30-year amortization. Marketing materials indicate that the financing structure produces a three-year average leveraged cash-on-cash return of 14.1 percent.
The property operates under a 50-year ground lease with the City of Long Beach, with ground rent payments representing 3.9 percent of total collected gross rents. Brokers underline that the municipality has a history of extending ground leases for similar properties. In addition, Traffic Management—occupying one-third of the campus square footage—recently renewed its lease and invested $2.2 million in improvements for its corporate headquarters.
Approximately 21 percent of the campus—32,255 square feet occupied by Optum—functions as medical office space. This firm is reportedly in negotiations for a 68-month renewal. The medical office tenant’s current rent sits 16 percent below office market rates and 24 percent below medical office rates, according to listing materials. Airport Plaza’s parking ratio of 5.12 spaces per 1,000 square feet could support additional medical office conversion, particularly given the combined 5.9 percent vacancy rate for medical office buildings in Long Beach and Suburban Long Beach as of third quarter 2025.
The campus is in close proximity to the San Diego (405) Freeway, Long Beach (710) Freeway and San Gabriel (605) Freeway interchanges, which collectively handle more than 1 million vehicles daily. Based on the flyer, the Suburban Long Beach market has attracted aerospace and space technology companies in recent years, with over $750 million in Department of Defense funding flowing into the sector. New entrants including Rocket Lab, Vast, Relativity Space and JetZero have established operations in the area.
Newmark’s Kevin Shannon, Scott Schumacher and Ken White are marketing the property.
