EL SEGUNDO, CA-On behalf of Kilroy Realty Corp., Jones Lang LaSalle’s capital markets team has closed the sale of 2031 E. Mariposa Ave. here in Los Angeles. JLL managing director Bob Prendergast tells GlobeSt.com that Kilroy disposed of the asset so they could expand in the Seattle and San Francisco area.
According to Prendergast, the deal was strategic from a seller standpoint to “redeploy their capital in the Seattle and San Francisco Bay Area and follow technology.” He adds that “REITs are not traditionally a big seller in real estate and usually more a net acquirer so this is unique in that way.”
AG Net Lease Fund II, an affiliate of Angelo, Gordon & Co. purchased the property for $45 million. Prendergast also tells GlobeSt.com that from the buyer’s perspectives, Angelo Gordon was expanding in Southern California, with a recently acquired property in Orange County, and this was “one of the rare creative office spaces in the South Bay.”
The 192,053-square-foot office building is 100% triple-net leased to Mattel Inc. through 2026. It serves as the company’s global design center.
JLL’s managing directors Lynn LaChapelle and vice president Baker Morphy also helped led the team on the transaction, while EVP Sam Foster provided market and leasing guidance. “This property proved highly desirable to a whole host of investors who understood the appeal of a stabilized asset leased to a credit tenant in one of the strongest, high barrier-to-entry markets in the Los Angeles region,” Prendergast says, adding that “AG Net Lease Fund II made a strategic investment that will pay considerable dividends in the future.”
The 2031 E. Mariposa Ave. site consists of nearly 10 acres on a flag-shaped lot. It was originally constructed in the 1950’s as a distribution building and includes a sizeable loading area and abundant space for parking and trailer storage. Mattel has occupied the property for more than 21 years and has invested considerable capital to upgrade it.
El Segundo is Mattel’s global headquarters and the company occupies nearly 720,000 square feet in the immediate area. The property is contiguous to three adjacent buildings that are also occupied by Mattel, giving the company a “campus” configuration, according to JLL.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
