Broadreach Buys BT Infonet Building For Nearly $20M

EL SEGUNDO, CA- Broadreach Capital Partners LLC has acquired a 122,000-sf office building from BT Infonet, a subsidiary of British Telecom, for $19.6 million. BT Infonet, which acquired the asset through its February 2005 purchase of Infonet Services, plans to lease back between 15,000 sf and 32,000 sf of the space for 10 years.Broadreach sees significant upside in the class A asset in light of the recovering El Segundo office submarket, according to David Simon, managing director and head of Broadreach’s Southern California operation. Simon was closely involved with team that developed the Grand Avenue Corporate Center, the $150 million mixed-use project that includes the BT Infonet headquarters, an adjacent sister building acquired by Broadreach, two hotels and a 134,000-sf HealthSouth training center used by the Los Angeles Lakers and Kings.Broadreach expects to lease up the project over the next several quarters, according to Simon. He says the company was attracted to the building and the other properties in the project for their central location in El Segundo, minutes south of the Los Angeles International Airport (LAX) with good access to the 405 and 105 freeways.Simon notes that the El Segundo office market is home to a broad base of high quality users like Northrop Grumman, Xerox, Mattel, General Dynamics, and Oracle. The project represents Broadreach’s sixth acquisition in Southern California over the past 12 months.Broadreach was represented in the transaction by Eric Lastition and Steve Cramer of Colliers Seeley International, who will be the leasing agents for the property. Nichole Audette of Transwestern will provide day-to-day onsite property management services.Broadreach, with offices in Palo Alto and Los Angeles, invests in Western US commercial real estate through its $314 million real estate fund, BRCP Realty LPI. The company is managed by the former executive team of Spieker Properties Inc.