EL SEGUNDO, CA—The 200,000-sq.-ft. office campus at 2100 E. Grand Ave. in El Segundo, Calif. has sold to a joint venture made up of Rockwood Capital and Marshall Property & Development for $25 million. The property was sold in an off-market transaction by 2100 Grand LLC, a related entity of the visual effects company Rhythm & Hues Studios.
The sale comes on the heels of Rhythm & Hues filing for bankruptcy protection in February. The company, which worked on the visual effects for the movie ‘Life of Pi,’ used the facility as its headquarters. At auction, Rhythm & Hues was purchased by an affiliate of Prana Studios.
“The deal was complex, time-sensitive and particularly challenging due to the bankruptcy,” said Lucent Capital Managing Director Steven Yazdani, in a statement. “Properties of this size and quality rarely trade without a national marketing campaign by a major brokerage firm. We were able to generate several, aggressive offers which met the seller’s expectations from all cash buyers.”
The buyer plans to invest up to $20 million in the redevelopment of the office campus, turning it into premier creative office space. Improvements will include interactive outdoor common areas, new tenant spaces an additional parking.
“The Rhythm & Hues campus provides a unique value-added investment opportunitycentrally located in the South Bay/West LA markets,” said Paul Marshall, president of Marshall Property & Development.“The existing architecture and unique campus setting provide us with a great opportunity to create what today’s tenants are looking for - indoor and outdoor gathering areas which allow tenants to interact in a creative environment."
Defense contractor CSC built the campus in 1978 and 1981 and is now located in one of the Los Angeles area’s fastest growing office markets.
“For more than 30 years, this property has been flying below the radar—100% occupied by various owner/occupiers and quietly operating within the marketplace. We will re-introduce the complex to the market with a fresh and relevant new look and feel,” says John MacDonald, vice president of Acquisitions for Rockwood Capital.