Atlas Capital spends $39M on former Raytheon property in El Segundo

The seller repurposed the building into a two-building office campus

Aug.August 02, 2018 05:00 PM
(Credit: Commercial Cafe)

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.

Related Articles

Atlas Capital bought the Los Angeles Times’ massive printing plant from a Harridge Capital partnership (Credit: iStock and the Los Angeles Times)

Atlas Capital pays $240M for LA Times’ printing plant in Downtown

Soon-Shiong beside his latest El Segundo buy

Patrick Soon-Shiong makes another landgrab in El Segundo

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office

2201 Rosecrans Ave in El Segundo

Continental snags $55M refi on El Segundo office portfolio

GPI Companies founders Cliff Goldstein and Drew Planting; Angelo Gordon & Company CEO Michael Gordon; and 2031 E. Mariposa Avenue

With plenty of dry powder, GPI Cos. buys El Segundo manufacturing complex

Chairman/CEO of Saatchi & Saatchi LA Kurt Ritter and 555 Aviation

Industrial chic: Iconic ad agency signs lease at Tishman Speyer building in El Segundo

Vella Group’s Zach Vella and the office in El Segundo

Development opportunity? This investment firm snagged an aging office campus in hot El Segundo

777 Aviation Boulevard, and from left: Ocean West Capital Partners Principal & co-founder Russ Allegrette and Lionstone co-founders Glenn Lowenstein and Dan Dubrowski

In booming El Segundo, Ocean West and Lionstone team up on office campus