The Roxborough Group and Montana Avenue Capital Partners Acquire 119,484-Square-Foot Office Building in El Segundo
Privately Held Real Estate Investment Firm and Santa Monica Real Estate Owner/Operator Plan to Reposition the Six-Story Property by Completing Interior/Exterior Renovations
EL SEGUNDO, Calif. (October 19, 2015) – Roxborough Fund I, an affiliate of San Francisco-based real estate investment firm The Roxborough Group, LLC, in partnership with Montana Avenue Capital Partners, LLC (“MAC”), a Santa Monica-based investment and management firm, completed the acquisition of 1700 East Walnut Avenue, located in El Segundo, Calif. Deal terms remain undisclosed.
The six-story, 99% leased, 119,484-square-foot office building is located in a prime location in El Segundo, which is part of the “Silicon Beach” technology cluster of West Los Angeles. The property benefits from its close proximity to LAX and the highly coveted beach communities of Manhattan Beach, Hermosa Beach and Palos Verdes. The immediate area has a deep and varied amenity base including lifestyle retail centers, The Edge and The Point, new and redeveloped hotel properties and numerous walkable food options including a newly delivered In-N-Out Burger. In addition, the property offers excellent transportation access at the intersection of Sepulveda Blvd. and the 105 Freeway and is within walking distance to multiple metro stations.
“The growing tech and media demand in El Segundo, coupled with its location immediately adjacent to executive housing and highly ranked public school districts, presents a fantastic opportunity to invest in a market that is capturing growing tenant demand across all sectors,” said founder and managing partner of The Roxborough Group, Marc Perrin. “El Segundo will continue to improve as Los Angeles’ diverse economy sees job growth and expansion across the region. We are excited to be partnering with MAC, a first class operating partner, to transform this asset.”
1700 East Walnut marks the first acquisition for the partners, who plan to reposition the property by activating the common areas and public outdoor spaces through a modern upgrade. MAC has proven success in the submarket with creative space conversions including “The Station” at 2201 E. El Segundo, “The Landing” at 2040 Mariposa and “linq” at 2400 Marine and plans to bring that direct expertise to the property.
“Our purchase of 1700 East Walnut allows us to deliver tenants a well-parked, centrally located and dynamic creative office campus, all at a significant value relative to the rest of the Silicon Beach market,” said Steve Elson, vice president of Montana Avenue Capital Partners.
As part of their repositioning, MAC and Roxborough’s plans include cosmetic upgrades to the exterior, a full renovation of the office lobby and entrance, as well as improvements to the signage and public outdoor areas including an expansion and redesign of the common area amenities. The repositioning is designed to take advantage of the significant demand from tenants for creative office space by offering a modern collaborative environment at an attractive price point.
“This is a great opportunity to acquire an asset with strong cash flows within the thriving El Segundo market,” added Elson. “We are pleased that it marks our first transaction with The Roxborough Group.”
About The Roxborough Group
The Roxborough Group is a private real estate investment firm founded in 2013. Headquartered in San Francisco, California, the firm has a broad mandate to invest in all real estate asset classes, both directly and with operating partners. Roxborough focuses on opportunistic, value-add and transitional real estate assets, high-yielding real estate debt, real estate-related operating businesses, as well as high quality, lower risk and longer duration real estate investments. For more information, please visit www.theroxboroughgroup.com.
About Montana Avenue Capital Partners
Montana Avenue Capital Partners, LLC (“MAC”) is a real estate investment, management, and development company based in Santa Monica, California with a regional office in Scottsdale, Arizona. MAC manages real property investments and loans in partnership with high net worth individuals, family offices, and institutional investors (www.macpartnersllc.com).