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| Jessica Levin |
EL SEGUNDO, CA –
Intercontinental Real Estate Corporation (“Intercontinental”), a national real
estate investment, development, and management firm headquartered in Boston,
Massachusetts, has acquired the Apollo
at Rosecrans, a recently renovated four-building creative office campus
totaling 546,833 square feet of office space set on more than 13 acres in El
Segundo, California.
CBRE and Kevin Shannon of Newmark Grubb Knight
Frank represented the sellers, Invesco Real Estate and Second Street
Ventures in the transaction. The
purchase price was not disclosed.
“The Apollo is a
one-of-a-kind property. We were able to
source and purchase a rare gem that is the definition of the most desired
office product in the Silicon Beach area of the Los Angeles market,” says Jessica Levin, Director of Acquisitions
at Intercontinental.
“In addition, the asset’s
location in a dense geography that provides walkability to surrounding
restaurants, stores, transportation and housing options makes this precisely
the environment today’s tech and creative company owners and employees are
seeking.”
Following its high-end
renovation, which was completed in 2015, the property has demonstrated its
appeal with a remarkable 537,548 square feet already leased, bringing the asset
to 98 percent occupancy in just 18 months, according to Levin.
The Apollo is situated
along the Rosecrans Corridor, which is a major hotspot for the growing tech and
creative companies in LA.
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| Apollo at Rosecrans Office Campus, El Segundo, CA |
Levin notes that the
Apollo at Rosecrans is also poised for strong rent growth based on favorable
market fundamentals, including positive net absorption and the lowest vacancy
rates that the El Segundo office market has seen in years.
“Demand for creative
office space in Westside LA is on the rise,” explains Levin. “Continuing rent
hikes in neighboring markets such as Playa Vista is driving tenants to El
Segundo, resulting in a vast migration of businesses to the Rosecrans Corridor.
This bodes extremely well for future rent appreciation in this submarket.”
“Despite its unparalleled
location and creative appeal, rents at The Apollo are considerably below market
rate values based on comparable product in the surrounding areas,” Levin adds,
noting that while the property commands the highest rents in the Rosecrans
Corridor, the Apollo currently leases office space at a 20 percent discount to
average Silicon Beach rates.
The Apollo at Rosecrans is
located at 2150 Park Place, 2120 Park
Place, 2121 Park Place and 2175 Park Place in El Segundo, near the I-105
and the 110 Freeways.
For a complete copy of the company’s news release,
please contact:
Katie Kea / Jenn Quader
Brower, Miller & Cole
(949) 955-7940
