Northrop Grumman’s Redondo Beach building placed on special servicer watchlist

Status of security firm’s lease is unclear

Jun.June 17, 2016 09:09 AM

A loan on a nearly 100,000-square-foot Redondo Beach office property has been placed on the special servicer watchlist amid uncertainty over whether a major tenant would remain at the building, The Real Deal has learned.

The property, at 3643 Doolittle Drive near Manhattan Beach Boulevard, is occupied 100 percent by Northrop Grumman, the American global aerospace and defense technology company. NG’s lease at the building expired at the end of May and the servicer has not been informed of whether or not the company plans to renew.

The property backs a loan from JP Morgan with an unpaid balance of $15.2 million, according to data from real estate research firm Trepp.

A spokesperson for Northrop did not immediately respond to a request for comment on the status of the lease.

Northrop has long used the Redondo Beach location as its for its aerospace operation, which produces aircraft, spacecraft and high-energy laser systems for the U.S. as well as other countries.

The building’s current owner, Lotus One Properties LLC, bought the property from Microtek Lab in 2006 for an undisclosed price. The firm could not be reached for comment.

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