Long Beach is one of Southern California's most natural mixed-use markets. The city's walkable neighborhoods, established retail corridors, growing downtown residential population, and a waterfront transformation that emphasizes live-work-play density all create strong fundamentals for properties that combine residential, retail, office, and other uses under one roof. From the $150 million Portico project (272 residential units with ground-floor retail) to the smaller mixed-use buildings lining Atlantic Avenue in Bixby Knolls and 4th Street in Retro Row, Long Beach offers mixed-use investment opportunities across a wide range of scales and price points.
Clear House Lending provides mixed-use property financing throughout Long Beach, from conventional commercial mortgages and SBA loans for owner-occupants to bridge financing for repositioning projects and DSCR loans for income-producing investments. This guide covers the mixed-use lending landscape, current rates, corridor analysis, and strategies for financing mixed-use real estate in Long Beach in 2026.
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Why Is Long Beach an Ideal Market for Mixed-Use Investment?
Long Beach's urban fabric has always been naturally mixed-use. The city developed around walkable neighborhood corridors where ground-floor shops and restaurants coexist with upper-floor apartments, creating the kind of organic, pedestrian-friendly urbanism that contemporary developers spend millions trying to replicate in newer markets.
Several structural factors make Long Beach particularly compelling for mixed-use investors in 2026.
The downtown waterfront transformation is the most significant catalyst. The Portico development ($150 million, 272 units with retail), the Alexan West End ($200 million residential), the 12,000-seat Long Beach Bowl amphitheater, and the Downtown Shoreline Vision Plan are collectively reimagining the waterfront as a mixed-use urban district. These projects create demand for supporting retail, restaurant, and service businesses at the ground-floor level, driving opportunities for mixed-use property investment.
Long Beach's multifamily demand supports the residential component. With apartment vacancy at approximately 3.9% to 5.3% and average rents around $2,650 per month, the residential portion of mixed-use buildings benefits from the same strong fundamentals driving pure multifamily investments. The city's population of roughly 466,000, its coastal location, and its relative affordability compared to Westside LA markets ($3,500+ to $3,800+) sustain persistent rental demand.
The retail component benefits from Long Beach's established corridor culture. Neighborhoods like Belmont Shore (2nd Street), Retro Row (4th Street), Bixby Knolls (Atlantic Avenue), and downtown's Pine Avenue all have active retail and dining scenes that provide income stability for the commercial portions of mixed-use buildings.
CSULB's enrollment of more than 39,000 students and the aerospace boom at Douglas Park (Anduril's 5,500-job campus, Boeing's retained operations, Relativity Space) generate the foot traffic, consumer spending, and housing demand that mixed-use properties need to thrive.
What Types of Mixed-Use Loans Are Available in Long Beach?
Mixed-use financing in Long Beach draws from several loan programs, with the optimal choice depending on the property's residential-to-commercial ratio, occupancy, and the borrower's investment strategy.
Conventional Commercial Mortgages serve stabilized mixed-use properties with strong occupancy across both the residential and commercial components. Rates range from 5.18% to 7.25% with 5 to 10 year terms and 25 to 30 year amortization. These loans work well for established mixed-use buildings along Long Beach's neighborhood corridors where both apartments and retail spaces are well-occupied.
SBA Loans are an outstanding option when the borrower operates a business from the commercial portion of the building. The SBA 504 program offers up to 90% financing with below-market fixed rates, while the SBA 7(a) program provides flexible terms. A restaurant owner who purchases a mixed-use building in Bixby Knolls, operating their restaurant on the ground floor and renting out the upstairs apartments, is a classic SBA mixed-use borrower.
DSCR Loans qualify based on the property's total income (residential plus commercial) rather than the borrower's personal income. DSCR programs work well for mixed-use investments with stable tenancy and adequate debt service coverage. The combined income from multiple revenue streams (apartments, retail, and sometimes parking) can produce strong DSCR ratios that support favorable financing terms. Use our DSCR calculator to evaluate your target property.
Bridge Loans provide transitional financing for mixed-use properties that need repositioning, renovation, or lease-up. Bridge financing at 7.50% to 10.50% is particularly relevant for older Long Beach mixed-use buildings that need updated apartments and refreshed commercial spaces before qualifying for permanent financing.
Construction Loans fund new mixed-use development, which is the primary growth segment in Long Beach's downtown waterfront. Rates of 7.00% to 9.50% apply to ground-up mixed-use projects.
Hard Money Loans offer fast closing for competitive mixed-use acquisitions. Hard money financing at 9.00% to 12.75% can close in days when speed is the priority.
What Are Current Mixed-Use Loan Rates in Long Beach?
Mixed-use loan rates in Long Beach depend on the property's income composition, tenant quality, occupancy, and location.
As of February 2026, conventional commercial mortgage rates for stabilized mixed-use properties range from approximately 5.18% to 7.25%. Properties where the residential component represents 60% or more of the total income may qualify for near-multifamily rates at the lower end of this range. Properties with a heavier commercial concentration face slightly higher rates reflecting the additional tenant risk.
SBA 504 loans offer fixed rates starting around 5.64%, making them the most cost-effective option for owner-occupied mixed-use properties. SBA 7(a) rates range from 6.50% to 8.00%.
DSCR loans for mixed-use investment properties range from 6.25% to 8.50%, with rates influenced by the property's total DSCR ratio, LTV, and the credit quality of commercial tenants.
Bridge loans for mixed-use repositioning range from 7.50% to 10.50%. Construction loans for new mixed-use development range from 7.00% to 9.50%.
Lenders typically evaluate the residential and commercial components separately when underwriting mixed-use properties. The residential component is evaluated using multifamily market rents and vacancy factors, while the commercial component is evaluated based on lease terms, tenant credit, and corridor market rents. The blended risk profile determines the final rate and terms.
Use our commercial mortgage calculator to estimate monthly payments for your Long Beach mixed-use property.
Which Long Beach Corridors Are Best for Mixed-Use Investment?
Long Beach's neighborhood corridors define the mixed-use investment landscape. Each corridor offers a distinct tenant mix, demographic profile, and income potential.
Downtown Long Beach is the center of the city's mixed-use evolution. The Portico and Alexan West End projects are setting the standard for new urban mixed-use development, combining residential density with ground-floor retail and restaurant space. The Downtown Shoreline Vision Plan envisions additional mixed-use density along the waterfront. Existing mixed-use buildings along Pine Avenue, The Promenade, and Broadway offer both value-add and stabilized investment opportunities. Cap rates for downtown mixed-use range from approximately 5.5% to 7.0%.
4th Street, Retro Row features classic Long Beach mixed-use: independent shops and restaurants on the ground floor with apartments above. The corridor's cultural identity, strong foot traffic, and loyal customer base create reliable commercial income, while the residential units benefit from the neighborhood's walkability and proximity to the beach. Properties along Retro Row command premium rents for both components and trade at cap rates of 5.0% to 6.0%.
Atlantic Avenue, Bixby Knolls is experiencing a dining and retail renaissance that makes mixed-use buildings along this corridor increasingly attractive. The growing restaurant scene, boutique fitness studios, and specialty shops are strengthening the commercial component, while the surrounding affluent residential neighborhood supports strong apartment demand. Cap rates range from 5.5% to 6.5%.
Broadway (Zaferia District and East) offers value-add mixed-use opportunities at lower entry points. The corridor is evolving from a traditional commercial strip to a more diverse mix of restaurants, creative businesses, and neighborhood services. Older mixed-use buildings along Broadway present renovation opportunities where both the residential and commercial components can be upgraded to capture higher rents.
2nd Street, Belmont Shore features mixed-use properties at the highest price points in Long Beach. The combination of coastal location, affluent demographics ($158,000+ average household income), walkable retail, and limited supply creates a premium mixed-use market with cap rates of 4.5% to 5.5%.
PCH and East Long Beach provide suburban-style mixed-use along Pacific Coast Highway and in neighborhood commercial nodes. These properties typically feature professional service or neighborhood retail tenants at grade with apartments above. They offer higher cap rates (6.0% to 7.0%) with less volatile income streams.
How Do Lenders Evaluate Mixed-Use Properties in Long Beach?
Mixed-use loan underwriting is more complex than single-use property evaluation because lenders must assess multiple income streams, tenant types, and risk profiles within a single asset.
The residential-to-commercial ratio is the first factor lenders examine. Properties where the residential component generates 60% or more of total income are typically treated more favorably, as multifamily income is considered more stable and predictable than commercial rent. A mixed-use building in Bixby Knolls with eight apartments above two retail spaces would likely have a 70/30 or 75/25 residential-to-commercial split, positioning it favorably for underwriting.
Commercial tenant quality and lease terms receive close scrutiny. NNN-leased ground-floor spaces with creditworthy tenants on multi-year leases receive the best treatment. Month-to-month commercial leases or vacant ground-floor spaces create uncertainty that lenders address through lower LTV ratios, higher rates, or required reserves.
California's AB 1482 rent control provisions apply to the residential component of mixed-use buildings built before 2005, capping annual rent increases at 5% plus CPI or 10%, whichever is lower. Lenders factor these limitations into their rent growth projections.
Proposition 13 property tax reassessment upon purchase affects both components of mixed-use properties. Investors acquiring long-held mixed-use buildings should model the post-acquisition tax increase carefully, as it can significantly impact NOI and DSCR calculations.
What Are the Key Risks of Mixed-Use Investment in Long Beach?
Mixed-use properties offer diversified income streams, but they also carry specific risks that investors should evaluate.
Commercial vacancy in the ground-floor component can impact the entire property's performance. If the restaurant on the ground floor closes, the investor must cover the vacancy while finding a replacement tenant. In Long Beach's stronger corridors (Belmont Shore, Retro Row, Bixby Knolls), re-leasing risk is moderated by high demand. In downtown or secondary corridors, re-leasing may take longer and require tenant improvement investment.
Use conflicts between residential and commercial tenants occasionally arise. Restaurant tenants may generate noise, odors, or late-night activity that disturbs upstairs residents. Retail tenants with heavy delivery requirements may create congestion. Professional mixed-use buildings with office or service tenants at grade tend to have fewer use conflicts than those with food and beverage operators.
Regulatory complexity increases with mixed-use properties. Different zoning, building code, and ADA requirements may apply to the residential and commercial portions. California's separate regulatory frameworks for residential tenants (rent control, just cause eviction) and commercial tenants add another layer of management complexity.
How Does Long Beach Mixed-Use Compare to Other Southern California Markets?
Long Beach's mixed-use market offers distinct advantages within the Southern California landscape.
Entry costs for mixed-use properties in Long Beach are significantly below comparable assets in Santa Monica, Venice, Culver City, and Pasadena. A mixed-use building on Atlantic Avenue in Bixby Knolls might trade at $350 to $450 per square foot, compared to $600 to $900 per square foot for similar properties on Montana Avenue or Abbot Kinney Boulevard. This lower basis creates more favorable DSCR ratios and higher cash-on-cash returns for Long Beach investors.
The city's natural mixed-use character, with decades-old buildings already integrating residential and commercial uses, provides a track record that newer purpose-built mixed-use markets cannot match. Investors can evaluate historical performance across economic cycles rather than relying on projections.
Long Beach's downtown transformation creates a growth opportunity that most established mixed-use markets cannot offer. The combination of waterfront investment, residential pipeline, and entertainment venues is reshaping the downtown mixed-use landscape in ways that should support property appreciation over the coming years.
Frequently Asked Questions
What is the minimum down payment for a mixed-use loan in Long Beach?
Down payment requirements depend on the loan program. SBA loans for owner-occupied mixed-use properties allow as little as 10% down if the borrower operates a business from the commercial space. Conventional commercial mortgages require 25% to 35% down. DSCR loans typically require 20% to 35%. The residential-to-commercial ratio affects requirements: properties with a higher residential percentage may qualify for slightly more favorable leverage.
Can I use an SBA loan to buy a mixed-use building in Long Beach?
Yes, SBA loans are one of the most popular financing tools for mixed-use properties when the borrower will occupy the commercial space. The SBA 504 program offers up to 90% financing with below-market fixed rates starting around 5.64%. The SBA 7(a) program provides additional flexibility. A restaurant owner purchasing a mixed-use building in Retro Row, a salon owner buying a building on Atlantic Avenue, or a professional services firm purchasing a building in Bixby Knolls are all common SBA mixed-use scenarios in Long Beach.
How do lenders evaluate the residential vs. commercial components?
Lenders evaluate each component separately, then blend the assessments. The residential component is underwritten using multifamily market rents, vacancy factors (typically 5% minimum), and operating expense ratios. The commercial component is evaluated based on lease terms, tenant credit, market rent comparables, and tenant improvement requirements. The blended income and expense profile determines the property's total NOI, DSCR, and ultimately the loan terms offered.
What cap rates should I expect for mixed-use properties in Long Beach?
Mixed-use cap rates in Long Beach range from approximately 4.5% to 7.0% depending on location and property quality. Premium coastal locations like Belmont Shore trade at 4.5% to 5.5%. Established corridors like Retro Row and Bixby Knolls trade at 5.0% to 6.5%. Downtown and value-oriented locations offer higher cap rates of 6.0% to 7.0%. The commercial tenant mix significantly affects cap rates, as properties with strong NNN-leased commercial tenants trade at lower cap rates than those with vacant or month-to-month commercial spaces.
Does rent control apply to the residential portion of mixed-use buildings in Long Beach?
Yes, California's AB 1482 (Tenant Protection Act) applies to the residential units in mixed-use buildings that were built before 2005. The law caps annual rent increases at 5% plus the local Consumer Price Index or 10%, whichever is lower. Long Beach's Just Cause Eviction ordinance also applies. These regulations affect how aggressively investors can push residential rents during a value-add strategy. The commercial component is not subject to rent control.
Are there mixed-use development opportunities in Long Beach?
Yes, mixed-use development is one of the most active construction segments in Long Beach. The city's Downtown Plan and Shoreline Vision Plan encourage mixed-use density along the waterfront and transit corridors. New developments like the Portico ($150 million, 272 units with retail) set the standard for contemporary mixed-use in the market. Smaller-scale infill mixed-use projects are also possible in neighborhoods like Bixby Knolls, Cambodia Town, and along Broadway, though high construction costs and lengthy permitting timelines are factors to consider.
Contact Clear House Lending today to discuss financing options for your Long Beach mixed-use property. Our team understands the unique underwriting requirements of combined residential and commercial assets and can help you structure the optimal loan for your investment goals.