Playa Vista Pioneer Moves onto El Segundo

LOS ANGELES—Lincoln Property Co. and Rockwood Capital has acquired the Gateway El Segundo, a 355,000-square-foot office campus in El Segundo. The details of the transaction were not disclosed, but industry sources unrelated to the deal tell GlobeSt.com that DivcoWest sold the property to Lincoln for $120,000 million. Lincoln was one of the largest developers in the Playa Vista market, and sees the same potential for growth in the El Segundo market.

“We have been investing in West L.A. now for a number of years, and we have seen the expansion of entertainment, media and technology, starting in Santa Monica and pushing south,” Rob Kane, SVP at Lincoln Property Co., tells GlobeSt.com. “We were the largest commercial developer in Playa Vista, and we have watched the transformation that happens in Playa Vista. We see the El Segundo as a market that is surging in demand for creative tenants. Entertainment, media and technology tenants are looking in El Segundo and are taking space in El Segundo. In the last decade, the market has completely transformed and reformatted itself and become more diverse and attractive to West L.A. tenants. We are seeing a lack of supply of creative office. This property was in a great location and had a great amenity base within walking distance, and it offered the potential to renovate it into creative office campus. All of the things that we see working in West L.A., we see in El Segundo.” The investor sees the market as an extension of the Silicon Beach movement.

Kane plans to create the same creative office environment in El Segundo that it created in El Segundo at properties like the Runway, which it sold earlier this year. “We definitely see El Segundo as an extension of our strategy in Playa Vista,” says Kane. “It is a coastal market than will attract high-quality creative office tenants and can provide high-quality creative tenants. It has proven that it can do that through other creative office projects that have leased up and sold to institutional investors.”

The office campus has three low-rise buildings with outdoor meeting spaces. It is currently only 52% leased, but Lincoln plans to renovate the property and drive occupancy for creative tenants. “We are going to get the renovation completed as soon as possible,” says Kane. “We are going to then lease the property up. We don't have a specific strategy on how long we are going to hold the property, but we are long-term investors in El Segundo and we want to be in El Segundo long term.” The renovation will target technology, media, and entertainment companies, and will be completed in fall 2017.

LOS ANGELES—Lincoln Property Co. and Rockwood Capital has acquired the Gateway El Segundo, a 355,000-square-foot office campus in El Segundo. The details of the transaction were not disclosed, but industry sources unrelated to the deal tell GlobeSt.com that DivcoWest sold the property to Lincoln for $120,000 million. Lincoln was one of the largest developers in the Playa Vista market, and sees the same potential for growth in the El Segundo market.

“We have been investing in West L.A. now for a number of years, and we have seen the expansion of entertainment, media and technology, starting in Santa Monica and pushing south,” Rob Kane, SVP at Lincoln Property Co., tells GlobeSt.com. “We were the largest commercial developer in Playa Vista, and we have watched the transformation that happens in Playa Vista. We see the El Segundo as a market that is surging in demand for creative tenants. Entertainment, media and technology tenants are looking in El Segundo and are taking space in El Segundo. In the last decade, the market has completely transformed and reformatted itself and become more diverse and attractive to West L.A. tenants. We are seeing a lack of supply of creative office. This property was in a great location and had a great amenity base within walking distance, and it offered the potential to renovate it into creative office campus. All of the things that we see working in West L.A., we see in El Segundo.” The investor sees the market as an extension of the Silicon Beach movement.

Kane plans to create the same creative office environment in El Segundo that it created in El Segundo at properties like the Runway, which it sold earlier this year. “We definitely see El Segundo as an extension of our strategy in Playa Vista,” says Kane. “It is a coastal market than will attract high-quality creative office tenants and can provide high-quality creative tenants. It has proven that it can do that through other creative office projects that have leased up and sold to institutional investors.”

The office campus has three low-rise buildings with outdoor meeting spaces. It is currently only 52% leased, but Lincoln plans to renovate the property and drive occupancy for creative tenants. “We are going to get the renovation completed as soon as possible,” says Kane. “We are going to then lease the property up. We don't have a specific strategy on how long we are going to hold the property, but we are long-term investors in El Segundo and we want to be in El Segundo long term.” The renovation will target technology, media, and entertainment companies, and will be completed in fall 2017.