Ocean West Capital Partners has bought a 152,000 square-foot industrial campus in El Segundo for $27 million.
The El Segundo-based real estate investor teamed up with North Carolina-based Barings to acquire the Smoky Hollow Flex Campus at 1550 E. Franklin Ave. in an off-market deal, the Los Angeles Business Journal reported.
The joint venture paid $27 million for the 5.1-acre property, according to property records unearthed by The Real Deal.
The industrial campus was built in the 1960s as a research and development facility for Wyle Laboratories. It represents “a rare contiguous block of available space in one of the most highly desired industrial markets in Southern California,” according to Ocean West Capital.
The company plans to spend millions of dollars to redevelop the property as a premier campus for the aerospace, defense, technology, life sciences and entertainment industries.
Updates would include new parking facilities, outdoor spaces and an additional building.
“The flex campus will be an ideal home for companies in the defense, aerospace, automotive, entertainment, and biotech industries that want to provide their workers with an innovative and collaborative work environment while at the same time offering modern manufacturing and R&D space,” said Ryan Tucker, principal at Ocean West Capital, in a statement.
Ocean West owns a multi-tenant office building at 777 Aviation Blvd. in El Segundo, according to the Business Journal, which it bought in 2019 with Lionstone Investments for $170 million.
El Segundo has been a hot market for office tech, with an influx of developers and investors looking to capitalize on the city’s appeal to office tenants over Silicon Beach’s pricier markets. The city has an attractive business tax scheme and aging industrial buildings ripe for office conversions.
Griffin Capital plans to build a 243,000-square-foot creative office complex amid the city’s push to transform itself from an industrial area to a technology hub.
[Los Angeles Business Journal] – Dana Bartholomew