A joint venture of Stanton Road Capital and Second City paid $35.5 mil for 898 Sepulveda, an eight-story, 89k sf ($399/sf) office property in El Segundo. The building, which was 98% leased at time of sale, includes a six-level parking structure leased to Central Parking. Built in 1979 and renovated in 2000, the property is situated on 3.4 acres at 898 Sepulveda Blvd. The property provides easy access to the 105 and 405 freeways, The nearby Beach Cities of El Segundo, Manhattan Beach, and Hermosa Beach offer one of the premier live/work environments in all of Los Angeles. The South Bay is the corporate headquarters location for Mattel, Honda USA, Epson, Cetera and DIRECTV.
Kevin Shannon, Ken White and Michael Moore with NKF Capital Markets represented the seller, TA Associates, in the off-market transaction. The buyer repped itself in the deal. David Milestone, also with NKF, arranged the financing on behalf of the buyer.
“El Segundo is a very strong office market that continues to see capital acquire and renovate older properties to attract tenants looking for creative space,” said Shannon. “As further testimony to this trend, the buyer is planning to make needed improvements to the asset and ultimately stabilize the building at market rents for updated product. Additionally, the buyer plans to extend the parking garage’s master lease for a longer term and more durable cash flow.”