Atlas Capital spends $39M on former Raytheon property in El Segundo
The seller repurposed the building into a two-building office campus
UPDATED, August 3, 12:20 p.m.: Atlas Capital Group is touching down in El Segundo.
The New York-based real estate investment firm has paid $39 million to acquire a new office campus built on a former Raytheon research facility in the South Bay city, The Real Deal has learned. The deal closed July 23, a representative from the firm confirmed.
SteelWave and Goldman Sachs, the sellers, recently completed a renovation of the property, located at 2030 E. Maple Avenue. The joint venture acquired the facility for an undisclosed amount in February 2016, property records show.
The two-building office campus, named INSITE, spans nearly 102,000 square feet. Amenities at the HLW-designed site include a fitness facility, basketball court, bicycle storage, and “bean bag toss,” according to its website.
Mike Condon Jr., Kelli Snyder, Brianna Demus and Erica Finck of Cushman & Wakefield brokered the deal. They’ll also serve as leasing agents for the space, in conjunction with Tom Sheets, Chris Sinfield and Quint Carroll, also from CushWake.
Atlas owns about a half-dozen properties in Downtown Los Angeles, and a handful of others around the greater L.A. area, including a number of development sites. It developed ROW DTLA on Alameda Street near 7th Street over the last few years and has signed a number of trendy tenants there, including Adidas, Boston-based streetwear brand Bodega, and Spaces, Regus’ coworking brand.
The firm is one of several out-of-towners investing in the booming El Segundo market, which abuts the Los Angeles International Airport. The city’s attractive corporate tax rates and relatively low rents has been attracting a slew of media and tech companies in recent years, which in turn has driven investment into the area.
Within the last 12 months, there have been three trades over $115 million in the city, according to a TRD analysis of closed sales. Starwood Capital’s $606 million purchase of the Pacific Corporate Towers, a sprawling 1.6 million-square-foot commercial campus, was the priciest deal in El Segundo, and second-highest in Los Angeles County. Other big trades include Swift Realty Partners’ $167 million buy of the AirFlyte campus, and Deutsche Asset Wealth Management’s $117 million purchase of Campus 2100.