Ocean Center Luxury Apartments – Long Beach, California

This case study focuses on the redevelopment of a century-old historic property using a short-term bridge loan provided by X-Caliber Funding, C-PACE financing provided by CastleGreen Finance, and Historic Tax Credits. The combination resulted in a lower cost, more efficient capital stack with a portion of long-term, fixed-rate financing.

The Property

110 Ocean Center is a national registered landmark built in 1929 with 13 stories and 114,827 sq. ft. Pacific6 Enterprises, a California-based partnership, development, and investing company, purchased the building in April 2018 and began plans for an $81.1MM redevelopment of an adaptive reuse from office to luxury apartments. The owner’s plan would result in 80 units with robust amenities while preserving all interior historic elements.

The Solution

Hybrid Solution: X-Caliber, and its affiliate CastleGreen Finance, recommended a hybrid, complete capital stack financing solution for the large renovation project.


The team proposed a short-term renovation loan combined with a C-PACE structure that not only provided borrowers with a portion of long-term, low-cost, fixed-rate financing, but also facilitated designs for the property that would deliver significant energy upgrades, reduce greenhouse gas emissions, and create significant cost savings over the life of the financing.

X-Caliber Funding provided $34.4MM in short-term financing and CastleGreen provided $20.6MM in C-PACE financing through California Statewide Communities Development Authority’s (CSCDA) Open PACE Program. The Property was eligible under the Federal Historic Preservation Tax Incentive program and was granted $12.4MM of historic rehabilitation tax credits (HTCs). The HTC funds can be used for approved hard costs, financing, and other softs costs related to the renovation.

The program, which encourages private sector investment in the rehabilitation of historic buildings, is administered by the National Park Service and the Internal Revenue Service in partnership with State Historic Preservation Offices. The 20% income tax credit is available for the rehabilitation of historic, income-producing properties, is based on the hard and soft costs of the project, as well as financing costs, and will be recognized over a five-year period.

This is the second transaction completed with a repeat borrower who closed on a similarly structured, $122.2MM joint transaction with the Fairmont Breakers Long Beach hotel in Long Beach, CA.

For the Community

The property formerly housed 200 office suites – it was part of the Pike Amusement Zone and the very well known “Walk of a Thousand Lights.” During renovations, much of the interior was preserved and the 1929 terrazzo floors continue to run along hallways. The property features 80 luxury apartments, with 40 unique floor plans, and four retail spaces containing 11,864 sf. Resident amenities include a large terrace and clubhouse, fitness center, and bicycle storage. The Los Angeles region has one the highest renter-to-owner ratios in the country. Demand for housing in the Los Angeles region consistently outpaces supply, resulting in strong rent growth and prevents most sub-markets from becoming overbuilt. The property is centrally located 20 minutes from Los Angeles and central Orange County, providing excellent access to the numerous demand generators in those counties.

For the Environment

Energy Efficiency: The project embraced clean and sustainable energy-efficiency measures, reducing the property’s environmental footprint, and contributing to a more sustainable future. The project included resiliency, HVAC, and energy-efficiency upgrades including window upgrades, HVAC system upgrades, water efficiency, heat and seismic improvements.

CO2 Emission Reduction: The project is designed to reduce CO2 emissions by 189.1 metric tons per year, making a substantial impact on environmental sustainability.

Water Usage: The project is designed to save an estimated 4.9MM gallons of water annually.

Borrower Benefits

The cross-platform financing solution provided the borrower with a highly effective, complete capital stack.

The project is designed to produce energy cost savings of $65,079 in year one and $1.9MM over the lifetime of the financing.

“C-PACE is an excellent way for us to demonstrate our commitment to sustainable development. We were pleased to work with CastleGreen and X-Caliber once again. We look forward to re-opening the historic Ocean Center, bringing the 1920s to the 2020s in grand fashion.”

Preserving History

During its 100 years of existence, the property was originally home to a variety of professionals – from accountants, to tax attorneys, to bankers – and survived the Long Beach earthquake of 1933.

With its rich history and impact on the local area, Pacific6 took significant steps to preserve the history of the Ocean Center Building. They committed to carefully preserving the historical elements of the former office building while transforming it into desirable residences. This preservation effort including retaining opulent historic interior details, maintaining the Spanish Revival architecture designed by Raymond M. Kennedy, and ensuring that public spaces within the building kept their historical significance intact.


<b>$81MM Redevelopment</b> Project

$81MM Redevelopment Project

<b>80 Rental</b> Units

80 Rental Units

<b>466.256 kWh/year</b> Total Energy Savings

466.256 kWh/year Total Energy Savings

<b>4.9MM Gallons</b> Estimated Water Savings

4.9MM Gallons Estimated Water Savings

Economic Growth

The 110 Ocean Center apartment building is located at the intersection of Ocean Boulevard and Pine Avenue in the heart of downtown Long Beach business center with an abundance of retail amenities in close proximity. The new residents will help stimulate economic growth.

Employment: The redevelopment employed 150 construction workers and has created five full-time positions for the property.


Pacific6’s redevelopment of the historic Ocean Center Building showcases a diligent preservation effort combined with the modernization and creation of a vibrant apartment community. Through innovative financing strategies, the project achieved a cost-effective and sustainable capital structure. This approach not only ensures the preservation of the building’s historical significance, but also paves the way for a strong future.

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