EverWest Real Estate Investors and Frontal Trust sold an industrial-to-office conversion in Redondo Beach.
Hawkwood Ventures paid $24 million for the 50,000-square-foot property at 2400 Marine Avenue, according to Commercial Observer. The property, dubbed LINQ, is fully leased to tenants including Uber. The ride-share company rents 10,000 square feet there.
EverWest and Frontal bought the property from Montana Avenue Capital Partners for $17.9 million in 2017. The latter converted the former industrial property into a creative office. Amazon was also a tenant at the time of the sale.
LINQ sits on the north side of Redondo Beach near El Segundo and Hawthorne, two cities that have seen a significant amount of commercial investment over the last several years.
Developers have scooped up aging industrial properties across the South Bay and converted them to office spaces to cater to tenants looking for alternatives to typically more expensive “creative” markets to the north of Los Angeles International Airport.
Investors large and small have got in on the action, including Tishman Speyer and Boston Properties.
It remains to be seen how the South Bay’s office market will fare moving forward. Leasing and investment sales declined considerably last year amid the pandemic.
The LINQ sale is EverWest’s second big transaction in Southern California this year. In January, the firm acquired a 74,800-square-foot industrial property in San Diego County.
[CO] — Dennis Lynch