Walnut

The subject property is an office building in the El Segundo area of Los Angeles. The building, which has been completely renovated, consists of six floors plus a five-story parking garage, with a total floor area of 120,063 SF. The property is 72% leased by a good mix of tenants, including government agencies. The remaining 28% represents vacant space located on the fourth and fifth floors, the formerly occupied by Mattel, Inc.

In addition, two full-floor tenants will vacate in 2023 and 2024, providing an opportunity to lease the space back at a significantly higher rent. The seller is now willing to provide 60% LTV financing at a fixed rate of 4%, thereby improving underwritten returns on an already excellent acquisition base.

The concentration of talent present in El Segundo, the proximity to upscale residential neighborhoods, and the presence of large corporations creates a hotspot that attracts and helps develop high-tech companies.