LAX Submarket Sees Increasing Activity

LOS ANGELES—Hackman Capital Partners has acquired a four-building 98,835-square-foot office and industrial campus in the LAX submarket, which has seen a consistent increase in occupancy and rental rates. The property is 100% occupied by Spartan College of Aeronautics and Technology, which uses the campus as an aeronautics and technology training program.

“The property represented an opportunity for us to acquire a stabilized property in an infill location within the strengthening LAX submarket,” Ryan Smith, managing director at Hackman Capital Partners, tells GlobeSt.com. “Our basis outpaces the market from both a cap rate and replacement cost standpoint, with the submarket fundamentals continuing to improve. The long-term nature of the lease will provide a stabilized cash flow for the foreseeable future.”

Hackman also owns the nearby 9000 and 9010 Bellanca Avenue, and is excited to increase its presence in the market. “Industrial product in West Los Angeles is in short-supply as properties continue to be converted to alternative uses, which has led to a surge in the demand for industrial projects surrounding the airport area,” says Smith. “The increase in activity has led to strengthening occupancy levels which have put upward pressure on rental rates.”

This particular property is a long-term hold play for the investor, especially considering the stable tenancy. “Spartan College has been a tenant at the property for over 40 years and has a long-term lease in place, so the near term plans are to maintain the status quo and service the needs of our tenant,” adds Smith.

 The property has a three-story office building, used for administration and classrooms, two hangars and a small building for engine demonstrations. The school is largely focused on aircraft maintenance and repair.