EL SEGUNDO, CA-Thomas Properties Group is offering Campus El Segundo, a 23.87-acre development site adjacent to the Los Angeles International Airport, to market. The campus stands out as one of the only sites in the L.A. area that is fully entitled, fully improved and ready to develop.
The asking price has not been revealed, but GlobeSt.com has learned that industry sources expect the site to fetch roughly $75 million, and experts estimate that construction costs alone will be $390 million, making the eventual development of office, retail and hotel properties worth approximately $750 million. Minutes from LAX, two major freeways and a rapid transit line and a short distance from both the ports of Los Angeles and Long Beach and downtown L.A., the site is expected to appeal to investors all over the world.
The site is entitled for 1.825 million square feet of development, and the current development plan calls for eight buildings. The offering also includes a sales and marketing office adjacent to the property at 800 Parkview Drive North, a 5,750-square-foot, two story building, and naming rights for an adjacent soccer complex. It also features immediate access to interstates 105 and 405 and is adjacent to the Metro Rail Green Line.
“We have invested more than a decade and many resources to secure entitlements and build infrastructure to make Campus El Segundo one of the only sites of this size in Los Angeles to be development ready,” said Thomas Ricci, Thomas’ EVP, in a prepared statement. “Our company is reducing its development activity as part of our long-range strategy, making this rare property available.”
Jones Lang LaSalle’s EVP Jeff Adkison and VP Brendan McArthur are representing Thomas on this offering, with assistance from JLL managing directors Steve Solomon and Michael Zietsman. “Campus El Segundo will garner broad interest from institutional investors, developers and end users—all eager to capitalize on this irreplaceable location in an extremely high barrier-to-entry market,” said Adkison in a prepared statement. “The fully entitled site, with in-place infrastructure, offers a unique opportunity to craft a blend of commercial space including office, retail and hospitality in one of the best locations in the Los Angeles/El Segundo submarket. Its proximity to the airport, as well as the ocean and a host of corporate headquarters, R&D and industrial properties, gives it unparalleled status in the marketplace.”
As GlobeSt.com previously reported, in January Thomas sold the 806,004-square-foot, three-building Brookhollow Central, a class-A office asset in Houston, to Parmenter Realty, for a reported $71 million. Jeff Hollinden and Dan Miller with Holliday Fenoglio Fowler LP represented Thomas in marketing the property and negotiating the transaction.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
