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

Seller North Sea Capital and AEW Capital spent $20M in improvements on the creative office building

TRD LOS ANGELES /
Nov.November 21, 2019 08:00 AM
From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman
From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman, and the creative office building in El Segundo

Nuveen Real Estate and Graymark Capital partnered to pay $97.2 million for a creative office building in El Segundo, a fast-growing hub for technology, entertainment and media companies.

The seller was a joint venture of El Segundo-based North Sea Capital Advisors and Boston-based AEW Capital Management. The deal for the 201,000-square-foot office building at 101 Pacific Coast Highway pencils out to $483 per square foot.

The complex is 91 percent leased to four tenants, with semiconductor manufacturer Infineon occupying nearly two-thirds of the building for its U.S. headquarters. Web hosting company DTI Services is also a major tenant.

Kevin Shannon’s team at Newmark Knight Frank represented the seller and announced the deal. NKF’s Eric Lastition and Geoff Ludwig handle leasing at the property.

Graymark, a San Francisco-based real estate investor and Nuveen, a unit of New York-based financial services company TIAA, were self-represented.

Over the past three years, North Sea Capital and AEW Capital spent nearly $20 million to renovate the 2.9-acre campus.

El Segundo, once known for its aerospace industry, has in recent years become a magnet for media and tech firms searching for a lower-cost alternative to Silicon Beach markets like Venice and Playa Vista.

In September, GPI Companies acquired a manufacturing complex leased by toymaker Mattel, less than a month after it closed a $300 million commitment for its real estate fund from a state pension fund.

The Nuveen-Graymark acquisition is also near where Continental Development Corp. recently began redeveloping several of its properties in the massive Continental Park, turning them into creative office spaces. That 3 million-square-foot campus is comprised of low- to mid-rise retail, restaurant, hotel and entertainment properties spread across 86 acres.


Related Articles

arrow_forward_ios
2201 Rosecrans Ave in El Segundo

Continental snags $55M refi on El Segundo office portfolio

La Mirada industrial building

Clarion pays $77M for La Mirada industrial project

510 Park Avenue and CEO of Monster Beverage Rodney Sacks

Monster Beverage affiliate guzzles down industrial project in San Fernando

The former Omega Cinema Props warehouse on Santa Monica Boulevard and the Hollywood Forever Cemetery (Credit: Google Maps, Hollywood Forever)

Warehouse complex will get new life next to Hollywood Forever Cemetery

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

arrow_forward_ios