A 52,000 square-foot creative office and data center in El Segundo has sold for $52 million, or approximately $1,000 per square foot. The property, located at 601 N. Nash Street was sold to a private family buyer, according to Newmark, which brokered the sale on behalf of its seller, Excelsior Partners.
According to public records, Excelsior Partners initially purchased the one-story warehouse building in 1991 for approximately $82.5 million. The Los Angeles-based commercial real estate investment company was founded more than 15 years ago and focuses primarily on acquiring industrial properties throughout Southern California.
Currently, the one-story office building is leased to San Diego-based software development company Teradata. The facility was initially built in 1954 as a warehouse and distribution center and last received renovations in 1990.
Located on more than three acres of land in the Greater Los Angeles area, the property is near various commercial, hotel and retail properties. Many software and technology company’s border the site, including Square Enix U.S.A. Inc., Tech Empower and Infineon Technologies. Several aerospace companies, including Boeing, Raytheon and Millenium Space Systems also are near the property. Sitting just Southwest of Downtown Los Angeles, the property also benefits from its close proximity to the Los Angeles International airport and immediate access to Interstates 105 and 405.
While the Greater Los Angeles office market continues to see a rise in vacancy rates, technology and media companies continue to occupy space in the market. According to a second quarter market report from Cushman & Wakefield, the region saw a 20 percent vacancy rate during the second quarter of the year. Despite this, the technology and media sector continues to occupy space in the region, making up for some of the largest lease transactions in the quarter, the brokerage firm reported. Hulu, for example, renewed and expanded in Santa Monica for 351,000 square feet. PlayStation and Skadden’s also renewed leases for 107,751 square feet in Playa Vista and 104,000 square feet in Los Angeles, respectively.
Newmark declined to comment on this story.
