Quantcast

The Real Deal Los Angeles

Boeing-leased office complex in El Segundo hits market for $50M

The 200K-sf buildings could be redeveloped, following the aerospace company's departure
By Natalie Hoberman | February 27, 2019 08:00AM

Boeing CEO Dennis Muilenburg

The owners behind a two-building office complex in El Segundo that’s fully leased by aerospace giant Boeing are about ready to depart.

A family trust is marketing the 200,000-square-foot property for $50 million, or $250 per square foot, The Real Deal confirmed. Real Estate Alert first reported the news.

Property records show the half-century-old properties at 650 and 700 Pacific Coast Highway are tied through an individual named John Winters.

Located on six acres, the building at 650 Pacific Coast Highway spans 121,000 square feet; the neighboring property at 700 Pacific Coast Highway is 79,000 square feet. They are located on a stretch formerly known as Sepulveda Boulevard, and which city officials renamed Pacific Coast Highway last year.

Both properties are occupied by the Boeing. The company plans on vacating the buildings when its lease expires at the end of the year.

Marketing materials tout the office complex as a prime redevelopment opportunity. A new buyer could reposition the buildings, which date to the late 1950s, into a creative office complex while potentially cashing in an operating income of $3.6 million from the remainder of the Boeing lease.

Newmark Knight Frank is representing the sellers.

El Segundo, once a haven for oil and aerospace firms, has become a hub for new media and technology companies in recent years as cities such as Santa Monica and Venice become increasingly expensive. Last year, the city unveiled a new plan meant to encourage office development in a still industrial area.