Ocean West Capital Partners has acquired Smoky Hollow Flex Campus, a 152,000 square foot flex industrial building, in an off-market deal. Located on 5.1 acres in the Smoky Hollow area of El Segundo, the property is in one of the most highly sought-after industrial areas in Southern California.

The 1960s vintage building currently features brick façade, roll up loading doors, ceiling heights ranging from 15 feet to 36 feet and a parking ratio of 2.0/1,000 square foot, and it is on a contiguous block. Ocean West plans to execute a capital improvement plan to upgrade the property to better cater to aerospace and defense industries, which are established in the area, and the emerging technology, life science and entertainment industries. The improvement plan will include upgrades to the exterior, new landscaping, parking facilities, building systems, outdoor recreation spaces and the construction of a new building.

In recent years, the Smoky Hollow submarket has emerged as an innovation hub with tech startups, creative companies and light industrial users flocking to the area, which offers significantly lower rents than nearby markets on the Westside. Plus there is tremendous support from local leaders. In 2019, the City of El Segundo released a plan to develop nearly 3 million square feet of creative office, industrial and public facility buildings through 2040.