Starwood, Artisan Pay $133M [corrected] for El Segundo Building

Post Courtesy of The Real Deal Los Angeles:

Seller Brookfield bought 1960 East Grand Ave. in 2017 for $67M

TRD LOS ANGELES /February 20, 2020 04:40 PM

By Matthew Blake

1960 East Grand Avenue, now owned by Starwood Capital Group and Artisan Realty Advisors, who have been very active in El Segundo

A partnership between Starwood Capital Group and Artisan Realty Advisors paid $132.65 million [corrected] to purchase an El Segundo office building from an entity associated with Brookfield Asset Management, The Real Deal has learned. The deal netted a tidy profit for Brookfield, which bought the 12-story, 260,000-square foot office building at 1960 East Grand Avenue in 2017 for about $67 million [allocated] through Brookfield Premier Real Estate Partners, according to CompStak. Tenants at the property include Target. JLL’s Andrew Harper and Tom Bohlinger brokered the deal along with Bill Bloodgood of Newmark Knight Frank, who confirmed the transaction to TRD. Starwood and Artisan were represented in-house, Bloodgood said. The price pencils out to about $506 per square foot [corrected]. The sale marks another major El Segundo buy by the Starwood-Artisan duo, with the partners paying $611 million [corrected] in 2017 for the 1.6 million-square-foot Pacific Corporate Towers at 100 S. Sepulveda Blvd. from BlackRock and General Motors Pension Trust. That same year, Starwood, headquarted in Miami Beach, Florida, and Artisan, headquartered in Santa Monica, also paid DivCo West $175 million [corrected] for a tower at the intersection at Continental Blvd. and Grand Ave. “El Segundo is an extremely favorable business climate,” Bloodgood said. “There is executive housing nearby in Manhattan and Hermosa Beach, and there’s no gross receipt tax for businesses.” El Segundo also surrounds LAX: The 1960 East Grand Ave. property is a two-mile drive from the airport.