TA Associates Buys 103,000 SF for $25M

EL SEGUNDO, CA-TA Associates Realty of Boston has acquired a 103,252-sf office building at 2401 El Segundo Blvd. from Trio Pacific LLC for $24.5 million, according to Colliers International, which brokered the sale. The six-story office building is leased to a roster of defense- and aerospace-related tenants, including Aerospace Corp., Mitre and Lockheed Martin.

Michael Ross, a senior vice president in the Downtown Los Angeles office of Colliers, says that the property’s location, adjacent to both the Air Force and Aerospace Corp. campuses, is a major draw for tenants. Occupancy at the building has remained at 100%, and for several years there has been a constant queue of tenants with ties to the defense industry lined up to get into the building, Ross notes. “There are few properties located this close to the Air Force Base and tenants like being able to walk across the street and visit their clients,” he says.

Fred Cordova, also a senior vice president in the Colliers Downtown L.A. office, adds that the property has maintained a sustained occupancy as the South Bay office market has remained very stable relative to other markets within the Los Angeles Basin. Rents in the El Segundo market have risen 20% per year over the last few years as the submarket “continues to benefit from rapidly rising rents on the west side and tenants seek more affordable alternatives,” Cordova says.