Varda Space Industries, the El Segundo-based space pharmaceutical manufacturer, is leasing a new facility once occupied by neighboring Mattel Inc.
Mattel designed toys and dolls in the 205,443-square-foot space; now, Varda Space will use the site to manufacture its spacecraft capsules, which launch pharmaceutical ingredients into the ether and back.
“This move gives our teams increased capacity and infrastructure to scale production, accelerate mission cadence, and continue delivering for our customers,” Jonathan Barr, Varda Space’s chief operating officer, said in a statement.
The facility is going back to its roots. The building was constructed in the 1940s as one of many aircraft facilities that served the bustling aerospace sector in the South Bay.
Mattel, which was founded in 1945, moved its headquarters from Hawthorne to El Segundo in 1991. But the toymaker had operated in that facility for several decades before the property’s landlord, GPI Cos., leased it out to Varda Space.
“2031 E. Mariposa has always been an exceptional property with a legacy tied to aerospace innovation,” said Mike Woods, partner at GPI Cos., “and leasing to Varda Space Industries feels like a natural continuation of that story.”
‘Synonymous with aerospace’
Varda Space was founded in 2021 to give pharmaceutical companies the variable of gravity when it comes to crystalizing active drug ingredients. The company creates spacecraft meant to hold small, delicate compounds that are shaken and stirred outside of Earth’s atmosphere before returning to land. The company has raised around $330 million since it got its start, including a $187 million raise in June.
“For nearly a century, El Segundo has been synonymous with aerospace excellence,” El Segundo Mayor Chris Pimentel said in a statement. “Varda’s continued expansion reaffirms that our city remains a strategic hub for industry-defining companies shaping the 21st century.”
CBRE Group Inc. co-facilitated the lease and subsequent transaction. According to the company, South Bay has leased 9.8 million square feet of real estate in 2025, a 16.2% uptick from the year prior.
