California-based developer Bixby Land Co. recently sold one of its buildings for $49 million. The company has doubled its investment with its market price for the famous El Segundo building, a report from Los Angeles Times said.
According to the report, for the past several years, developers have transformed the El Segundo building into a new structure suited for collaborative work spaces. In an interview, Bixby Chief Executive Bill Halford said that El Segundo is actually part of the Silicon Beach. He said that the company was able to acquire the El Segundo Blvd. back in 2001. The company has reportedly leased the building to some executives living near South Bay.
"Bixby partnered with real estate investment manager Cornerstone Real Estate Advisers in purchasing the building in 2013. They spent $25 million to acquire and transform the traditional office space into flashier, more modern offices. Perks at the 113,606-square-foot building include a dog park and beach cruisers for workers. There are polished concrete floors, exposed ceilings and a shared outdoor patio with a rectangular fire pit and couch," the report said.
Inside the building, a typical office was leased for $3.65 square foot back in December. The price that the company announced back then suggests that there's high demand in office rental. It was said that the first leased price announced by the company in early 2015 was only $2.50.
Currently, the new owner of the building is the Bolour Associates. The company reportedly paid an expensive price of $431 per square foot for the property. The company claims that it is eyeing the El Segundo building as one of its "long term investments."
"Long a pioneer in creating value in real estate, Bixby is a leader in designing and repositioning buildings into contemporary work environments that meet the needs of a progressive workforce. Bixby is active in the investment of institutional grade core industrial properties as well," reads a profile of the company on its website.