777 Aviation Boulevard, and from left: Ocean West Capital Partners Principal & co-founder Russ Allegrette and Lionstone co-founders Glenn Lowenstein and Dan Dubrowski
A joint venture between Ocean West Capital Partners and Lionstone Partners purchased a massive three-story office building in booming El Segundo.
The duo paid $170 million for the 318,200-square-foot office in an off-market sale according to Madison Partners, which brokered the deal. Suntrust Bank provided more than $114 million in financing for the buyer of the property, representing a loan to value ratio of about 667 percenrt.
The seller of the property at 777 Aviation Boulevard was Westbrook & Embarcadero Partners. It acquired the property in 2015 for $37.1 million, records show. The deal works out to $535 per square foot.
El Segundo has become a boomtown over the last couple of years, as medical, media and tech firms look for cost-effective options outside of Santa Monica and Venice. In April, Sandstone Properties sold an office building at 2221 Park Place for $31 million, and Radiology Partners signed a 64,000-square-foot lease in Frank Gehry’s Ascend building in El Segundo last November.
Westbrook recently renovated 777 Aviation with a three-story atrium, a new fitness center, and indoor and outdoor conference space. It was originally designed in 1968 by Los Angeles-based architect Craig Ellwood.
In 2016, the Federal Aviation Administration signed a 15-year lease for a 154,000-square-foot space at 777 Aviation. It was one of the top office leases in L.A. that year.
Madison arranged the sale with Ocean West and Lionstone. It’s the third time the firm has coordinated the sale of the building.
In April, Ocean West sold two office buildings in Beverly Hills for $107.5 million in a joint venture with Walton Street Capital. Last year, the firm was teamed up with Westbrook Partners in the $93 million sale of a 165,000-square-foot building in Westwood.
Lionstone recently sold CalEdison’s building in Downtown L.A. for $141 million.