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Avison Young announces $11.25 million sale of creative office building in El Segundo23 Jun 2021
Los Angeles, CA – Avison Young announced today the $11.25 million sale of a fully occupied, 15,743 square-foot creative office building located at 2210-2218 E Maple Avenue in El Segundo, CA.
Avison Young Principal Neil Resnick, and Method Commercial Founder and Managing Director Martin McDermott, represented the seller, Five Amigos, LLC, a partnership comprised of the former owner-users and Australia-based investors. The buyer, a Los Angeles-based private investor, was self-represented.
The architecturally striking property was put on the market in January 2020 with the intent to target an owner-user as the two owner-tenants were planning to expand into new offices. Then in March, the pandemic hit, the owner-tenants that comprised approximately 75 percent of the asset vacated the property as planned, and the marketing was put on hold. By the middle of March 2020 the project shifted from the sale of an owner-user building to a lease listing.
“With pandemic-induced factors, our team quickly pivoted to a new lease-up strategy that attracted multiple offers during a time when it was rare to even secure tours,” said McDermott. “The ownership was thrilled when we prevailed with a new tenant, Tecolote Research, with lease terms that added value to the property. The caliber of the new tenant, the economics of its lease, and the underlining quality of the asset allowed Neil and I to pivot the process again back to the sales market, but this time as an investment sale.”
Tecolote Research signed a five-year, 11,893-sf lease and moved into the space in December 2020. This, along with the existing tenant, Goodlife Physical Medicine, brought it to full occupancy.
Goleta, CA-based Tecolote Research provides decision support, program management, project controls, and software solutions to a number of United States government entities including the Department of Defense (DoD), and National Aeronautics and Space Administration (NASA). This new location for Tecolote focuses on software development and was an ideal fit for the company as it offered a cool vibe and great location for attracting young designers throughout the Los Angeles area.
“Cleary there was a degree of concern related to the disposition of the property during a pandemic, however, the overriding fact that the building is a showcase asset and the strength of the tenants made the assignment feasible. When the asset was placed on the market again as fully stabilized, we secured multiple offers from investors,” said Resnick.”
Built in 2015, 2210-2218 E Maple Avenue features natural light and fresh air provided by two roll-up doors with private patios, two balconies with accordion sliding glass doors, abundant windows (many operable) and skylights, and ample parking. It is part of the Elevon Campus, an innovative 46.5-acre, 15-building development that combines office and retail buildings, athletic fields, and two hotels including the new AC Hotel by Marriott.
Avison Young creates real economic, social and environmental value as a global real estate advisor, powered by people. As a private company, our clients collaborate with an empowered partner who is invested in their success. Our integrated talent realizes the full potential of real estate by using global intelligence platforms that provide clients with insights and advantage. Together, we can create healthy, productive workplaces for employees, cities that are centers for prosperity for their citizens, and built spaces and places that create a net benefit to the economy, the environment and the community.
Avison Young is a 2021 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for nine consecutive years.
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For more information:
- Neil Resnick, Avison Young, +1 424-265-9191