Decron Properties Corp. has sold Airport Spectrum to Sunny Hills Management Company, Inc., for $61.25 million.
Marc Renard, Manfred Schaub and Chris Sinfield of Cushman & Wakefield’s Capital Markets Group advised the seller in the transaction.
Airport Spectrum is a 500,000-square-foot, two-building office campus with 1,600 parking spaces and two high-profile outdoor billboards located at the Gateway to LAX, in Los Angeles. The office development was built in 1980 and acquired by Decron in 2000. Over the past 10 years, Decron invested over $6 million in capital improvements that included renovation of the exterior façade, modernization of the lobby and common areas, and enhanced vehicular access into the property. As a result, Decron was able to sign leases with numerous prestigious major tenants, including UCLA, Expeditors International, and the Transportation and Safety Administration (TSA). At the time of sale, the building was 75% leased, up from less than 30% when the building was acquired by Decron.
“Our goal was to reposition this asset and introduce a true Class A office environment for businesses that needed to operate adjacent to LAX,” stated David Nagel, CEO of Decron Properties Corp. “Airport Spectrum is now a leading office building in the submarket, consistently outperforming its peers on all levels.”
“The asset attracted both domestic and international capital sources seeking urban office assets with long-term durable cash flow and a mass transit orientation,” said Mr. Renard, Vice Chairman of Cushman & Wakefield’s Capital Markets Group. “The $8 billion modernization of LAX in conjunction with the dynamic leasing activity occurring in the lower west side made this a very compelling, intrinsic value opportunity.”
Situated at the entrance to Los Angeles International Airport, the property is a block away from a MetroRail Station opening in 2019 and is adjacent to a Marriott Hotel and a Hilton Hotel.
The successful merger of Cushman & Wakefield and DTZ closed September 1, 2015. The firm now operates under the iconic Cushman & Wakefield brand and has a new visual identity and logo that position the firm for the future and reflect its trusted global
legacy and wider history. The new Cushman & Wakefield is led by Chairman & Chief Executive Officer Brett White and Global President Tod Lickerman. The company is majority owned by an investor group led by TPG, PAG, and OTPP.