New York-based real estate firm Atlas Capital Group is looking to unload a fully leased creative office in a small coastal city just south of Los Angeles International Airport.
The 101,300-square-foot structure is on a 4.85-acre site at 2030 East Maple Avenue in El Segundo, Calif., which is home to one of L.A.’s fastest-growing alternative office submarkets over the past decade. The asking price is currently $69.1 million, a source familiar with the sales effort told Commercial Observer. The stabilized, suburban low-rise building comes with a 6.15 percent cap rate, and a weighted average lease term of 6.2 years.
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Atlas acquired the property in 2018 for $39 million from SteelWave and Goldman Sachs, which transformed it from a former Raytheon research facility. Colliers (CIGI), which is marketing the property for sale, secured most of the leases during the height of the pandemic at market rates, according to Steve Solomon, senior executive vice president at the brokerage. Indeed, in November 2020, online marketing firm Prodege signed for 35,000 square feet.
Architecture firm HLW designed the building, which features a fitness center and yoga studio, a basketball court, an outdoor dining and patio space, and a full kitchen.
Solomon said selling office buildings is challenging now because of rising interest rates. But he said the building at 2030 Maple includes all new tenant improvements, and “all the good things of buying a building and not having to do anything but collect rent.”
In Southern California, Atlas is most active in Downtown L.A., which is about 16 miles northeast of El Segundo. That includes the Row DTLA redevelopment, which is home to apparel and fashion-focused tenants including REVOLVE, Adidas and Shein; a low-rise office at 712 South Olive Street; and others. Atlas also entered L.A.’s studio scene with the $650 million redevelopment of a former L.A. Times printing plant downtown into a production lot with 17 soundstages and 212,300 square feet of offices.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
