Onni Group has commenced demolition at the 6-acre Marina Shores site at 6500 Pacific Coast Highway in Long Beach, signaling a major redevelopment after its $68 million acquisition. Meanwhile, hypersonic drone maker Hermeus is relocating its $1 billion valued headquarters to El Segundo, securing a significant lease in the burgeoning aerospace hub. These moves highlight both the transformation of key LA commercial corridors and the region's growing appeal for high-tech industries.
SUBJECT LINE: Onni Demolishes Long Beach Marina; Ares Buys Whitestone for $1.7B PREVIEW TEXT: Onni Group kicks off Long Beach transformation; Ares takes $1.7B REIT private.
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# LA Development Insider ### Friday, April 10, 2026 | LA Development Intelligence
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## PERMITS & MAJOR FILINGS Vancouver-based Onni Group has initiated demolition at the former Marina Shores shopping center located at 6500 Pacific Coast Highway in Long Beach. This teardown marks a significant step in the site's transformation, five years after Onni acquired the 6-acre property for $68 million. The specific permit for demolition, likely a standard demolition permit from the City of Long Beach Building and Safety Department, was not immediately available but is a prerequisite for the planned redevelopment.
While Onni's exact plans for the site remain under wraps, the demolition signals the start of a major mixed-use project. The scale of the property and its prime waterfront adjacent location suggest a substantial residential or mixed-use development, aligning with Onni's track record of large-scale projects across North America. This move is poised to reshape a key commercial corridor in Long Beach, potentially bringing hundreds of new housing units and retail spaces to the area.
--- Global logistics giant Prologis (NYSE: PLD) and Canadian pension fund manager La Caisse de dépôt et placement du Québec (CDPQ) are setting their sights on a massive $1.17 billion expansion within the European industrial sector. While not directly impacting LA development, this joint venture highlights the continued robust appetite for industrial assets from major North American players. The investment targets new development and acquisition opportunities across key European logistics markets.
This significant capital deployment underscores the ongoing strength of the industrial asset class globally, driven by e-commerce growth and supply chain modernization. For LA developers and investors, it signals that major institutional capital continues to chase industrial opportunities, potentially impacting pricing and competition for similar assets in core US markets, including the Inland Empire and greater Southern California.
--- Los Angeles-based alternative asset manager Ares Management Corp. (NYSE: ARES) has announced plans to acquire Whitestone REIT (NYSE: WSR) in a deal valuing the open-air retail portfolio at $1.7 billion. Ares intends to take Whitestone's 5 million square feet of retail space off the public market, marking its second take-private transaction of a REIT. The specific filing for this acquisition would be with the SEC, detailing the merger agreement and valuation.
This move by Ares signals a continued institutional interest in acquiring and repositioning retail assets, particularly those with a strong community-centric, open-air format. While Whitestone's portfolio is primarily located in Sun Belt markets, the acquisition by a major LA-based firm suggests a strategic play to capitalize on undervalued retail assets and implement a private equity-backed turnaround or optimization strategy.
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## ENTITLEMENT WATCH Terra Capital is actively pursuing further multifamily development on Los Angeles' Westside, filing an application last week with the Los Angeles Department of City Planning for entitlements. The specific address for this new project was not immediately disclosed, but it is situated in the Pico-Robertson neighborhood, an area known for its dense residential fabric and demand for new housing. The application likely seeks a density bonus or other zoning variances to maximize unit count.
This latest filing follows Terra Capital's established pattern of developing multifamily properties in supply-constrained, high-demand Westside submarkets. Community reaction in Pico-Robertson to increased density projects can often be mixed, with concerns typically revolving around traffic, parking, and neighborhood character. The planning department will review the project's compliance with local zoning codes and environmental impacts, with a planning commission hearing date yet to be set.
--- The saga surrounding Oceanwide Plaza, the stalled $1 billion mixed-use project at 1101 South Flower Street in Downtown Los Angeles, continues to unfold with new twists in bankruptcy court. The latest $470 million offer for the graffiti-covered eyesore is reportedly facing pushback, while more details have emerged regarding an all-cash backup offer from Sean Burton’s Cityview. Cityview's interest signals a potential lifeline for the long-dormant development, which has become a symbol of distress in the Downtown market.
The complexity of the bankruptcy proceedings and the significant legal challenges involved make the path to resolution uncertain. Any new developer stepping in would face the immense task of completing the partially built towers, addressing existing liens, and navigating a challenging Downtown office and residential market. The eventual outcome will set a precedent for large-scale distressed assets in LA, with significant implications for future downtown development and investment.
--- A sprawling estate at 77 Beverly Park Lane in the exclusive Beverly Park enclave has hit the market with an ambitious $68 million asking price. This ultra-luxury property, once reportedly rented by music icon Prince, is seeking a buyer in a market that continues to see high-net-worth individuals vying for trophy assets. The listing is a direct sale, not involving any specific planning variance, but highlights the persistent demand for top-tier residential real estate in Los Angeles.
The property's high valuation reflects its prime location within one of LA's most prestigious gated communities, known for its large lots and celebrity residents. While the market for homes at this price point is highly specialized, the continued influx of international buyers (as noted in other market intelligence) suggests there is still a deep pool of capital for such offerings. The sale will be closely watched as a benchmark for ultra-luxury residential values in Beverly Park.
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## LAND DEALS & ACQUISITIONS The LAAA Team of Marcus & Millichap has successfully closed the sale of 1536 N Serrano Avenue, a 42-unit Low-Income Housing Tax Credit (LIHTC) community in East Hollywood, for $7.6 million. The buyer was an undisclosed affordable housing investor, while the seller was a private ownership group. The transaction required three separate government approvals, underscoring the complexity of affordable housing deals in Los Angeles. The price per unit was approximately $180,952.
The sale highlights the continued demand for affordable housing assets, even with the added layer of regulatory approvals. The property's existing LIHTC status ensures its long-term affordability, making it an attractive investment for entities focused on social impact and stable cash flows. The intricate approval process involved likely included sign-offs from HCD, HCIDLA, and potentially the Housing Authority of the City of Los Angeles, reflecting the various layers of oversight for subsidized housing.
--- Hermeus, an aerospace startup specializing in hypersonic drones, is relocating its headquarters from Atlanta to El Segundo after closing a $350 million Series C funding round, bringing its valuation to $1 billion. The company has secured a significant lease in El Segundo, a burgeoning hub for aerospace and defense firms, though the specific address and square footage were not disclosed. This move underscores El Segundo's growing prominence as a high-tech industrial and R&D corridor.
The influx of high-valuation tech companies like Hermeus is a boon for the El Segundo commercial real estate market, driving demand for specialized office, R&D, and light industrial spaces. Their presence will likely attract more venture capital and skilled talent to the area, further solidifying the "Aerospace Alley" reputation. This relocation represents a significant boost for LA County's innovation economy and its appeal to advanced manufacturing.
--- Despite California's proposed wealth tax prompting some billionaires to consider relocating, international buyers are increasingly investing in the Los Angeles luxury home market. This trend, observed following the January 2026 implementation of the state's new transfer tax on high-value properties, indicates a robust global appetite for LA's trophy assets. While specific deals were not detailed, the report suggests a continued inflow of foreign capital into the $80 million+ price point.
This dynamic creates a bifurcated luxury market: some domestic high-net-worth individuals are exiting, while international buyers are stepping in, often less deterred by state-level taxes due to different financial structures and motivations. The enduring appeal of LA's lifestyle, climate, and status as a global city continues to draw foreign investment, ensuring liquidity at the top end of the residential market.
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## MARKET INTELLIGENCE The Los Angeles County Board of Supervisors has approved a $3 million loan for Abbey Road's development of The Main Apartments, a 64-unit affordable housing project in the San Fernando Valley. This funding, likely from the county's affordable housing trust fund, will support the construction or acquisition and rehabilitation of the project, which aims to address the critical shortage of affordable housing in the region. The specific location within the San Fernando Valley was not immediately available.
This $3 million allocation is part of a broader county initiative to accelerate affordable housing development, reflecting a continued commitment to addressing the housing crisis. Such public-private partnerships are crucial for bridging financing gaps for affordable projects, which often face higher development costs and complex funding stacks. The loan demonstrates the county's proactive approach to increasing housing inventory for low-income residents.
--- California-based Carmel Partners has successfully raised nearly $1.4 billion for its latest multifamily value creation fund, Carmel Partners Investment Fund IX. This substantial capital raise, which closed recently, indicates strong investor confidence in the multifamily sector, particularly for value-add strategies. The fund will target investment opportunities across the U.S., focusing on acquiring and repositioning existing multifamily assets.
The significant capital infusion into Carmel Partners' fund highlights the ongoing institutional belief in the resilience and growth potential of the multifamily market. Despite economic headwinds, investors are clearly betting on continued demand for rental housing. This influx of capital will likely increase competition for multifamily acquisitions, potentially impacting cap rates and pricing in key markets, including Los Angeles.
--- Atar Capital, a private investment firm, is expanding its operations and relocating its headquarters to what is reportedly the most expensive office building in Southern California. The firm is moving across the street within Century City, although the specific address of their new trophy space was not disclosed. This move underscores the continued allure of Century City's top-tier office market for high-profile financial and investment firms.
Century City and Beverly Hills continue to be outliers in the broader LA office market, commanding premium rents and attracting tenants seeking prestige and prime locations. Atar Capital's expansion and move into a top-tier building signals a bullish outlook for their business and a willingness to pay for best-in-class office environments, even as other submarkets struggle with vacancy.
--- Beverly Hills and Century City trophy buildings were the primary drivers of rent growth in Los Angeles' office market during the first quarter of 2026. Savills Research Director noted these two submarkets continue to outperform the broader LA market, which has seen more modest gains. Average asking rents in these prime areas saw an increase, contrasting with more stagnant or declining rates in other parts of the city.
This performance highlights the "flight to quality" trend, where tenants are prioritizing premier locations and amenities, even at higher costs. While overall office vacancy rates in LA remain elevated, the strength of these luxury submarkets indicates a bifurcated market. Developers and investors should continue to focus on Class A assets in prime locations to capture the strongest demand and rental growth.
--- Downtown Los Angeles' rebound is characterized as a "marathon, not a sprint," with the area presenting a mixed bag of challenges and opportunities. Despite pockets of activity and ongoing investment, particularly with an eye towards the 2028 Olympics, Downtown still grapples with empty storefronts, visible homelessness, and a slow return to pre-pandemic vibrancy. This assessment comes as the district continues its long-term transformation efforts.
The narrative around Downtown LA remains complex, with significant public and private investment aimed at revitalization, yet persistent issues tempering rapid recovery. Developers active in the area must navigate these complexities, understanding that while long-term potential exists, the path to full revitalization will be gradual. The ongoing efforts to enhance public spaces and attract new businesses are crucial for its sustained recovery.
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## QUICK HITS - A massive fire, suspected to be arson, destroyed a 1.2 million square foot warehouse filled with toilet paper in Ontario earlier this week, leading to a roof collapse. (Bisnow LA)
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## WHY THIS MATTERS Today's news paints a picture of a dynamic, albeit complex, LA real estate market where institutional capital is making big moves, but local challenges persist. Ares' $1.7 billion acquisition of Whitestone REIT and Carmel Partners' $1.4 billion fund raise underscore strong investor confidence in specific asset classes like retail and multifamily, even as Onni Group kicks off a major redevelopment in Long Beach. However, the slow recovery of Downtown LA and the ongoing saga of Oceanwide Plaza remind us that not all segments are thriving equally. Developers and investors should continue to target high-demand submarkets and asset classes, focusing on value-add opportunities and leveraging public-private partnerships for affordable housing, while remaining cautious about speculative plays in struggling urban cores.
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*Intelligence sourced from 5 LA real estate feeds. Published daily by ABR Media Group | ladevinsider.com*
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SUMMARY: Onni Group has commenced demolition at the 6-acre Marina Shores site at 6500 Pacific Coast Highway in Long Beach, signaling a major redevelopment after its $68 million acquisition. Meanwhile, hypersonic drone maker Hermeus is relocating its $1 billion valued headquarters to El Segundo, securing a significant lease in the burgeoning aerospace hub. These moves highlight both the transformation of key LA commercial corridors and the region's growing appeal for high-tech industries.
