EL SEGUNDO, CA—AEW North America has acquired a 198,531-square-foot office property in El Segundo from Menlo Equities, a private Palo Alto-based investor, for $51.6 million. AEW plans to renovate and reposition the property into a creative office campus to attract the tech and media tenants migrating to the area. The investor purchased the property in a joint venture with Claymark Capital and Lincoln Property Co.
“The property is located in a very hot market. We felt like the particulars of the deal were such that we could take advantage of the market and the asset based on its current position in the market,” Scott N.N. Burrin co-founder and CEO of Claymark Capital, tells GlobeSt.com. The investor purchased the property in an off-market transaction. Colliers International EVPs Geoff Ludwig and Eric Lastition represented both the buyer and the seller in the transaction. Ludwig and Lastition will also handle leasing on the building.
Located at 101 N. Sepulveda Blvd. in El Segundo, the property is currently partially occupied. AEW plans to renovate the interior and exterior of the building to appeal to creative tenants. The renovation includes creating open floor plans, high ceilings and polished concrete floors. The common areas and courtyards will also be renovated. “We are going to try to chase the creative sector of the market,” says Burrin. “The building offers attractive space for a tenant that wants single-floor efficiency. We are going to make some improvements to make the space more creative, and then lease it out as such.”
El Segundo is a very active creative office market with ample construction. The market has been attracting a broad range of tenants, from tech and creative tenants to more traditional industries that want to take advantage of the benefits of open floor plans and amenitized campuses. Other developments to recently hit the market include the elevon campus, which is experiencing strong leasing.
AEW is in the midst of hiring architects and drawing up plans for the project, so it has not yet launched leasing efforts for the vacant portion of the property.
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