LAX-area office property sells for more than $60 million
Airport Spectrum, a two-building office campus near Los Angeles International Airport, has sold for $61.25 million, the largest sale of commercial property in the LAX submarket in a decade, according to real estate brokers Cushman & Wakefield.
Located in the Gateway to LA Business Improvement District — consisting of more than 40 office, hotel, parking, retail and restaurant properties — Airport Spectrum sits adjacent to two hotels and a block away from a Metro light rail station that opens in 2019.
The offices boast 500,000 square feet, 1,600 parking spaces and two high-profile outdoor billboards.
Built in 1980, Airport Spectrum was purchased in 2000 by Los Angeles-based Decron Properties Corp.for $24 million.
The company invested $6 million in improvements to the property and increased its occupancy rate from less than 30 percent to 75 percent.
“Our goal was to reposition this asset and introduce a true Class A office environment for businesses that needed to operate adjacent to LAX,” Decron CEO David Nagel said in a news release. “Airport Spectrum is now a leading office building in the submarket, consistently outperforming its peers.”
Tenants include UCLA and the U.S. Transportation and Safety Administration.
The buyer was Lawndale-based Sunny Hills Management Co.
“The asset attracted both domestic and international capital sources seeking urban office assets with long-term durable cash flow and a mass transit orientation,” said Marc Renard, vice chairman and executive managing director of Cushman & Wakefield’s Capital Markets Group, which represented the seller.
“The $8 billion modernization of LAX in conjunction with the dynamic leasing activity occurring in the lower Westside made this a very compelling, intrinsic value opportunity,” he added.
Decron Properties Corp., has a real estate portfolio of 55 retail, office and apartment buildings worth more than $1.5 billion.
In other local commercial real estate news, Harbor Gateway-based Storm Properties broke ground this week on a 114,000-square-foot Class A industrial building in Gardena on a former nursery site.
What will be called Storm Fujimoto Industrial Center is expected to be completed by the first quarter of 2016.