The Roxborough Group and The Ruth Group Acquire Office Tower Near Los Angeles International Airport
Privately Held Real Estate Investment Firm and Southern California Real Estate Owner/Operator Purchase 15-Story, 304,821 Square Foot Tower in Los Angeles
LOS ANGELES (May 19, 2017) – Roxborough Fund I, an affiliate of San Francisco-based real estate investment firm The Roxborough Group, LLC in partnership with The Ruth Group, LLC (“TRG”), a Los Angeles-based investment and management firm, completed the acquisition of 9841 Airport Boulevard, located in Los Angeles, Calif., for $12.5 million.
The fifteen-story, 304,821-square-foot office tower is 62 percent leased and located along Century Boulevard in the Los Angeles International Airport (LAX) submarket. The property benefits from its proximity to the airport and numerous affluent coastal neighborhoods, as well as excellent access to the 105 and 405 freeways.
Century Boulevard has recently undergone a dramatic transformation as several competitive office buildings in the area have been converted into hotels, which has reduced office supply and improved the amenity base. In addition, an extension of the Metro Green Line is under construction, and the new station at the intersection of Century and Aviation boulevards, scheduled to open in 2019, is a short walk from the property. The completion of this station will be the first among many new public infrastructure projects in and around LAX, including a new rental car facility, an automated people mover connecting the airport with the metro line and a second green line station at 96th and Aviation.
“9841 Airport is located in a unique coastal location experiencing dramatic changes, yet remains an affordable option for tenants priced out of Playa Vista, El Segundo and other Westside ‘Silicon Beach’ submarkets,” said senior vice president of The Roxborough Group, Matt McCormick. “LAX is a rapidly improving submarket that is well positioned to continue improving. We are excited to be partnering with The Ruth Group, whose successful experiences in Southern California will be critical as we revitalize this asset.”
9841 Airport marks the first acquisition for the partners, whose business plan calls for a significant renovation of the office building. TRG has proven success in the South Bay submarket with major repositions including “211 Ocean” in Long Beach and “The Knox” in Torrance and plans to bring that direct expertise to the property.
“We are excited about the opportunity to reposition this landmark asset with a number of creative alternatives,” said Bob Ruth, president of The Ruth Group.
The plan envisioned by TRG and Roxborough includes a complete rebranding, cosmetic upgrades to the exterior, a full renovation of the office lobby and entrance as well as improvements to the signage and landscaping. The repositioning is designed to transform the asset and take advantage of the lack of quality office space available in the submarket while offering rents at a discount to the neighboring submarkets.
“This is a unique situation where we can begin to transform a submarket with the repositioning of a major asset that will thrive with the $14 billion expansion of LAX and the public transportation system,” added Ruth. “It will be exciting to watch it happen.”
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 The Ruth Group
The Ruth Group is a full-service real estate company focused on acquiring, repositioning, developing and operating commercial real estate in select growth markets throughout Southern California. The Ruth Group targets opportunities where it can engage in active management and cost control strategies to create value for our Partners. The organization was formed in 2007 and the Principals have been working together for over 25 years. Originally with Tooley & Company and then with Trammell Crow Company for approximately 10 years. For more information, please visit www.trgpartners.com/index.asp.