Developer drops $51M on big office property in El Segundo
By Bianca Barragan LA.Curbed.com
The Vella Group and London & Regional have purchased a 200,000-square-foot property on Pacific Coast Highway in El Segundo and are “actively exploring possibilities” to redevelop the site with creative offices, says the Vella Group company’s founder Zachary Vella.
The two paid $50.8 million for the property at 650-700 Pacific Coast Highway, which includes an eight-story office building, a two-story building, and a large parking lot, according to real estate agent Antony Arkel, of Rodeo Realty, who represented the Vella Group.
The offices are in use by Boeing now, but the company was reportedly planning to vacate the building at the end of the year, when its lease runs out.
It has also been busy in the South Bay. It is developing the 62,000-square-foot Hawthornewarehouse that will be the new headquarters of the home security company Ring, which Amazon bought for $1 billion last year. LA-based M-Rad Architecture is designing the project.
Vella Group closed in May on a property on Lairport Street, on the opposite side of the block from the PCH property. The Lairport site houses a low-slung brick structure, but the purchase included a disused railroad “spur,” an alley-like sliver of land that cuts through the entire block and could potentially connect to the Pacific Coast Highway property to create a whole other entry point to the sites.
Historically a petroleum and aerospace town, El Segundo has, in recent years, grown its reputation as a hub for tech companies that are, in many cases, repurposing the warehouses left behind by the aerospace industry into “creative” campuses with high ceilings, large industrial-style windows, and big open expanses of interior space.
In one project, old Northrop Grumman warehouses on Douglas near the 105 Freeway are being repurposed by Gensler for Hackman Capital, the firm that owns CBS Television City as well as the Culver Studios.
Frank Gehry is designing an 80,000-square-foot office space for the developer NSB Associates in the neighborhood. A ground-up office complex aimed at media tenants would bring 240,000 square feet of offices and 7,000 square feet of retail to what is now a vacant lot.
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