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

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
Redcar Properties CEO Jim Jacobsen with Dynasty Center (Google Maps, Industry Partners)
Redcar buys Dynasty shopping center in Chinatown
Redcar buys Dynasty shopping center in Chinatown
Sandstone Properties CEO Eri Kroh with a rendering of the project (Sandstone, The Jeff Hotel)
Culver City approves `The Jeff,’ Sandstone Properties’ 175-unit hotel
Culver City approves `The Jeff,’ Sandstone Properties’ 175-unit hotel
Apple delays return to office by a month
Apple delays return to office by a month
Apple delays return to office by a month
Stos Partners Principal CJ Stos and 159 N San Antonio Avenue 
Stos Partners pays $22M for Pomona warehouse
Stos Partners pays $22M for Pomona warehouse
The assistance is available to theaters with fewer than 99 seats (Getty)
California lawmakers set aside $50M in massive state budget to aid small theaters
California lawmakers set aside $50M in massive state budget to aid small theaters
Elon Musk and 19640 Cajon Boulevard (Alere Property Group, Getty)
Tesla drives into San Bernardino with big warehouse deal
Tesla drives into San Bernardino with big warehouse deal
Goodman Group CEO Gregory Goodman with renderings of the facility (Goodman, Relativity Space)
Goodman signs spaceflight startup to 1.3M-sf former Boeing site
Goodman signs spaceflight startup to 1.3M-sf former Boeing site
A rendering of Hyatt Hotel Nue (nKlosures)
S3D scores loan to build Hotel Nue Hollywood Hyatt
S3D scores loan to build Hotel Nue Hollywood Hyatt
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...