A 1970s office building across the street from a light-rail station in El Segundo has sold for $11.3 million to Los Angeles investors who plan to boost its appeal to tenants in creative fields.
Montana Avenue Capital bought the Station, as the building at 2201 E. El Segundo Blvd. is known, from a limited liability company called LA Venture VI, real estate brokerage JLL said.
Montana Avenue Capital will invest "significant" capital to redevelop the empty 52,000-square-foot office property into a Class A creative-style office campus with modern workplace technology and various outdoor work spaces, JLL said.
The campus will also offer collaborative open space throughout the interior, surface parking with private tenant entrances and space for tenants to put their company signs on top or at grade level.
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"The Station will offer new-economy companies an opportunity to occupy collaborative space in a building where they can create a unique identity with signage and separate, personalized building entrances," said broker Steve Solomon of JLL.
"The El Segundo office market continues to dominate the South Bay with regard to vacancy and asking rental rates and El Segundo has become a vibrant part of the 'Silicon Beach' market in West L.A.," he said.
As of the end of the fourth quarter, the overall vacancy rate in El Segundo fell below 11% with rents averaging $2.50 per square foot per month, Solomon said.