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The Real Deal Los Angeles

SpaceX-leased industrial complex in Hawthorne hitting the market

The 1.4M sf campus' anchor tenant is aviation company Triumph Group
By Natalie Hoberman | May 08, 2018 05:00PM

SpaceX founder Elon Musk and Zelman Development co-president Paul Casey, with Century Business Center (Wikimedia Commons/Zelman)

In Hawthorne, an opportunity to become SpaceX’s next landlord is ready for blastoff.

A 1.4 million-square-foot industrial property in the former aerospace hub is hitting the market, The Real Deal has learned. There is no asking price but sources familiar with the deal say it could fetch around $180 million.

The complex, Century Business Center, is located at 3901 Jack Northrop Avenue, next door to Elon Musk’s SpaceX headquarters at 1 Rocket Road.

The property is owned by Zelman Development, which specializes in industrial properties across Southern California. Paul Casey, co-president at Zelman, confirmed the listing.

Bret Hardy of Newmark Knight Frank is representing Zelman.

The industrial property is mostly leased by Triumph Group, which manufactures military and commercial airframe structures.

SpaceX leases the remaining 350,000 square feet of the facility, and has inked a 10-year deal to take over Triumph’s space once that company’s lease ends in 2020, according to sources. SpaceX did not immediately return requests for comment.

Zelman acquired the seven-building campus in 2010 for $40 million, according to property records on Real Capital Analytics.

Hawthorne, a traditionally industrial zone, has been seeing an influx of technology companies. This week, high-tech doorbell maker Ring announced its plan to move into a 62,000-square-foot warehouse in the neighborhood, adding to Amazon and SpaceX’s presence.

“There’s a ton happening right now in Hawthorne,” Brad McCoy, a Lee & Associates broker who closed Ring’s deal, said. “If Silicon Beach and the Arts District had a baby, it’s the Hawthorne tech zone.”