Tishman Speyer Properties has sold 555 Aviation Blvd. — a 259,754-square-foot creative office campus in El Segundo — for $205.5 million. The office property was purchased by Rialto Capital Management. Natixis Corporate & Investment Banking provided a $126.7 million acquisition loan in what is one of the largest office transactions in Los Angeles County in the past five years.
Tishman Speyer had repositioned the asset for a sale. The New York-based real estate investment firm acquired 555 Aviation in 2015 for $45 million with the intent to convert the aging, single-story distribution and repair facility into a best-in-class, creative office office.
After sole user Xerox vacated the building, in 2017, Tishman Speyer embarked on a $44 million renovation of the property that created light-filled interior spaces produced by floor-to-ceiling glass and high ceilings. The firm also added a fitness center, cafe, outdoor lounge areas, bike storage, ample parking areas and other amenities.
The campus is now fully leased to Belkin International, Saatchi & Saatchi and Fabletics. All three tenants have long-term leases.
This is Tishman Speyer’s second major office disposition in California during the past month. On June 9, the firm announced the sale of its Sunnyvale office campus in Silicon Valley. After acquiring the vacant property in 2021 for $356 million, Tishman Speyer leased the 719,037-square-foot, four-building campus in its entirety to Meta in less than one year.
Its subsequent sale to CommonWealth Partners for $707 million marked the highest price ever for an office property in Silicon Valley, according to Newmark Group Inc.
“With both 555 Aviation and Sunnyvale, we seized the opportunity to acquire well-located assets and reimagine them to serve the next generation of customers,” said Tishman Speyer Chief Executive Rob Speyer in a statement. “These recent sales speak to the success of our repositioning strategies and the enduring appeal of collaborative, highly amenitized office environments.”
Tishman Speyer Senior Managing Director Paul DeMartini added, “555 Aviation serves as a prime example of Tishman Speyer’s expertise in unlocking the full human potential of the built environment for the long-term benefit of our customers and co-investors.”
Cushman & Wakefield’s Kevin Donner, Doug Harmon, Ben Lushing, David Hasbrouck, Ben Cooper and Lars Platt represented Tishman Speyer in the transaction. Cushman & Wakefield’s Rob Rubano, Brian Share and Joe Lieske arranged the financing.
El Segundo continues to garner top tenants. The Los Angeles Chargers are building a new corporate headquarters and training facility while Beyond Meat and L’Oréal have signed leases to relocate their headquarters to El Segundo.
