EL SEGUNDO, CA—DivcoWest has acquired the Gateway El Segundo, a five-building office and retail portfolio, from JH Snyder. Although DivcoWest would not release the terms of the deal, industry sources tell GlobeSt.com the purchase price is approximately $75 million.
Located on Sepulveda Blvd., the 343,500-square-foot office and retail center has mainly restaurant tenants, including Five Guys, Rubio’s Baja Grill and Which Wich, as well as a credit union office tenant. DivcoWest was particularly attracted to the El Segundo submarket, which it describes as “a key Los Angeles growth market.” Over the last several years, the submarket has seen a significant influx of creative, tech and media companies, and a talented workforce. Due to company regulations, DivcoWest would not comment on the transaction.
This influx of employees and employers has also boosted the multifamily market. M West Holdings, for example, recently paid $60.5 million for a 248-unit apartment complex in the South Bay market. The property received 14 bids from interested investors. According to Ron Harris and Greg Harris, two brokers who worked on the M West transaction, the office market is driving the steep competition for multifamily in the South Bay. In the last year, 2 million square feet of creative office space came online in the South Bay, and those employees are now looking for a home.