Off-Market Office Property Sells for $51.6 Million
El Segundo Continues Its Momentum as Top Location for Creative Space
In another sign that demand for creative office space continues unabated throughout Southern California, Colliers International has negotiated the sale to AEW North America of the 101 Sepulveda Building in El Segundo in a transaction valued at $51.6 million. The transaction closed Friday.
Executive Vice Presidents Geoff Ludwig and Eric Lastition of the brokerage firm’s El Segundo office represented both parties to the off-market transaction. Plans call for AEW to completely renovate the 198,531-square-foot structure, transforming the classic 1980’s-designed office building into contemporary creative office space. Ludwig and Lastition also have been named exclusive leasing brokers for the property.
Located at 101 N. Sepulveda Blvd. and built in 1984, the three-story building was owned by the Palo Alto-based real estate investment firm of Menlo Equities, a privately held firm that focuses on the acquisition, development and operation of properties in select technology markets in the western United States.
“AEW will re-purpose the asset into creative space after completing a full interior and exterior renovation,” Ludwig said. “This is a watershed deal for El Segundo in terms of the size of the building and the amount of creative space that will be coming on the market. It also underscores the strong demand we are seeing for creative space here and throughout the region.”
International Rectifier, a world leader in power management technology, currently occupies about 65 percent of the building, according to Ludwig, with the remaining 35 percent vacant, including the entire third floor.
Sandwiched between Los Angeles International Airport on the north and the South Bay submarket on the south (including the cities of Manhattan Beach, Hermosa Beach, Redondo Beach and Torrance), El Segundo has long been a favored location for aerospace and petroleum-related firms. It also is the site of the Air Force Space Command’s Space and Missile Systems Center at Los Angeles Air Force Base.
“This is another high-water mark for El Segundo and will help meet the growing demand for creative space that has just exploded here in the last few years,” said Lastition. “Not only will more creative office space now be available, but this size of a project at this key location solidifies the city’s ranking as the location of choice for firms looking to lease new creative space.”
Over the past five years, El Segundo, has become a favored location for technology and entertainment industry-related firms seeking an affordable Westside address without wanting to pay the premium rents being asked in such markets as West Los Angeles, Beverly Hills, Century City, and West Hollywood, Lastition noted.
In addition to aerospace giants like Raytheon, Northrop, Boeing Satellite and The Aerospace Corporation, El Segundo has long been home to such Fortune 1000 firms as Mattel, Chevron, Accenture, DirecTV, Time Warner Cable, Xerox and Teledyne Controls. Other, smaller creative firms that support TV and film production, computer gaming, and architecture and design, also occupy space in the city.