Real estate giant Invesco is looking to sell Apollo at Rosecrans, a large office building campus in El Segundo, for upwards of $300 million, more than five times what it paid two years ago, listing broker Kevin Shannon of NGKF told The Real Deal.
The company and its partner SSV Properties have owned the 547,000-square-foot complex since late 2013, when it bought them for a combined $55.8 million. The partnership plowed more than $75 million into renovating the buildings, which are located at 800 Apollo Street, 2120, 2121 and 2175 Park Place, opening up the floor plans and outfitting the buildings for a new generation of tech tenants.
The portfolio is currently 98 percent leased. Colorado-based health care company DaVita has a lease for 185,419 square feet valid through 2026, while online fashion retailer JustFab occupies 133,748 square feet through 2029.
The move to sell comes as the El Segundo office market continues to show signs of growth. Asking rents in the tech overflow submarket of El Segundo/Beach Cities increased by 2.2 percent during the fourth quarter to $2.84 a square foot a month, according to a recent report by NGKF. The overall average asking rent closed the year 8.4 percent above its 2008 peak of $2.62 a square foot a month.
Shannon previously told The Real Deal that demand for office properties was slated to be high in 2016.
“There seems to be an abundance of capital,” he said. “We’re going to have another very busy year in terms of sales velocity.”
Meanwhile, Invesco’s appetite for LA real estate appears to remain intact. The company recently acquired Runway Playa Vista, a 14-acre mixed-use development, from a joint venture between Lincoln Property Co., Phoenix Realty and Alcion Ventures.