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401 Coral Circle in El Segundo
Majestic Asset Management bought a Rivian-leased El Segundo flex industrial building from Hackman Capital Partners for approximately $27M, The Real Deal reported.
The sale price of the 57K SF building at 401 Coral Circle translates to $480 per SF, a considerable markup from the roughly $15.3M Hackman paid when it bought the property in 2018.
Rivian is subleasing the full building from Boeing, and the lease expires in 2034.
Earlier this month, another Hackman-owned property in El Segundo scored a more than 100K SF lease with the South Korean ad agency Innocean at creative office complex 888 Douglas.
The flex industrial sale comes as Hackman’s studio portfolio is garnering a lot of attention. Properties are being taken over by lenders or pushed toward sales as debt on studios like Manhattan Beach’s MBS Studios or Fairfax’s Television City goes into default or threatens to.
El Segundo and other South Bay cities are getting a boost from aerospace and defense tech tenants seeking to locate and grow there.
Leasing activity for the entire Los Angeles industrial market totaled 15.7M SF in the second quarter, a 40.4% year-over-year increase, according to CBRE.