A 200,000-square-foot campus in El Segundo sold for $50.8 million, brokerages Newmark Knight Frank and CBRE Group Inc. announced July 18.
The two-building campus at 650 and 700 Pacific Coast Highway is leased to Boeing until the end of 2020.
NKF’s Kevin Shannon, Ken White, Michael Moore and CBRE’s Bill Bloodgood represented the seller, a private family tenant-in-common. The buyer was New York-based Vella Group. The company was self-represented.
“This property has excellent street identity along PCH, an ideal location within the heart of the El Segundo market. That combined with the tremendous tenant momentum in El Segundo created an extremely desirable and competitive investment opportunity,” Shannon said in a statement.
The El Segundo office market has been booming in recent years. In the second quarter of 2019, the average asking rate for Class A office space in El Segundo was $4.34 a square foot, up from $3.89 a square foot the year prior, according to data from Jones Lang LaSalle Inc.
Once Boeing’s lease is up in 2020, Bloodgood said Vella Group plans to target “media, tech and entertainment tenants.” The campus, built in 1962, sits on roughly 6 acres.
Commercial real estate reporter Hannah Madans can be reached at email@example.com. Follow her on Twitter @HannahMadans