Newmark Knight Frank (NKF) has completed the $63.5 million sale ($420 per square foot) of a Class A, 151,289-square-foot, three-story office building located at 2160 Grand Avenue in El Segundo, CA.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan, and Senior Managing Directors Laura Stumm and Michael Moll represented the seller, Griffin Capital Essential Asset REIT, Inc. (REIT). NKF Executive Managing Directors Eric Lastition and Geoff Ludwig served as local market experts. The buyer, SteelWave, was self-represented.
The REIT acquired the asset for $52.7 million in February 2014.
“There is a severe imbalance right now relative to the amount of opportunities available to the vast amount of value add capital looking to be placed,” said Hannan. “With its superb forward-looking CRE fundamentals, its status as the CBD of the South Bay, and its highly affluent and educated labor force, El Segundo has emerged as a target market for capital across all return metrics, and especially value add investors.”
“Steelwave has a tremendous opportunity to reposition 2160 Grand into one of El Segundo’s and the lower Westside’s premier creative office settings. The asset has fantastic physical qualities that provide an amazing canvas to activate superb indoor and outdoor areas that will no doubt help attract and capture the tenants proliferating the market,” added Stumm.
Built in 1999 and situated on 6.45 acres, the asset features core elements that provide for a creative office repositioning opportunity including expansive, open floorplates for flexibility and ceiling height of approximately 15 feet, and natural light throughout. 2160 Grand is located adjacent to the Metro Green Line and offers immediate access to the 105 and 405 freeways.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,000 professionals operate from approximately 480 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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