Commercial Property Executive: North Sea Capital Pays $45M for LAX Office Tower
The property, located between Silicon Beach and El Segundo, underwent an $8 million improvement program under previous ownership.
October 11, 2019
The Roxborough Group, in partnership with The Ruth Group, has sold a 306,243-square-foot office tower in Los Angeles. A joint venture led by North Sea Capital Advisors purchased 5901 Century for $45 million. Newmark Knight Frank secured $39.7 million in acquisition financing.
According to Yardi Matrix data, the property last traded in 2017 for $12.5 million. The sale was subject to a $19.8 million acquisition and development loan from Maples Fund Services.
Built in 1968, the asset is situated at 5901 W. Century Blvd. in the LAX submarket. It underwent a complete renovation in 1999, per Yardi Matrix data. Following the 2017 purchase, The Roxborough Group invested more than $8 million into repositioning the property. The building features 21,080-square-foot floorplans and a parking ratio of 3 spaces per 1,000 square feet. Amenities include an executive clubhouse, dog park and bicycle-sharing program.
The 15-story building, currently 92 percent leased to a diverse mix of tenants, is located between Silicon Beach and El Segundo, close to interstates 405 and 105. Los Angeles International Airport is less than 1 mile west and an extension of the Metro Green Line is a couple of blocks east of the property.
Nearby public transport includes an automated people mover connecting the airport with the metro line and a second green line station at the intersection of 96th and Aviation streets. The building is surrounded by hotels, some of them recently converted from office use in advance of the LAX expansion and the new LA Stadium & Entertainment District at Hollywood Park in Inglewood.
NKF Co-Head of U.S. Capital Markets Kevin Shannon and Senior Managing Director Michael Moore, together with Executive Managing Directors Ken White and Sean Fulp, represented the seller in the deal. NKF Vice Chairman David Milestone and Senior Managing Director Brett Green secured the acquisition financing.
Shannon and White were also instrumental in the recent $44 million sale of another Los Angeles office building. The 292,500-square-foot asset is located approximately 14 miles northeast of 5901 Century.