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8/31/26
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Majestic Realty has purchased a 56.8k sf, mission-critical R&D office facility in El Segundo for $27.25 mil ($480/sf). The property, located at 401 Coral Circle, is 100% leased on a triple-net (NNN) basis to Rivian.
The property was sold by Hackman Capital Partners, who originally acquired the building in 2018 for $15.3 mil. Hackman repositioned the asset and leased it to Boeing, and subsequently Rivian. The current sale price represents a 78% increase in value over Hackman’s eight-year hold period and is a testament to the strength and desirability of the South Bay market.
Situated on a 2.14-acre site, 401 Coral Circle features 24-foot clear heights, six dock-high doors, 3,000 amps of power, a car wash and 110 parking stalls. Originally built in 1967 and renovated in 2020, the facility serves as both a customer-facing service center and a highly secure R&D facility, supporting Rivian's consumer and commercial vehicle lines, including the R1S, R1T and its Amazon-partnered Rivian Electric Delivery Van (EDV). Founded in 2009 and headquartered in Irvine, California, Rivian is a publicly traded electric vehicle manufacturer with a market capitalization of approximately $21.5 bil.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairmen Rob Hannan, Ken White, Laura Stumm and Michael Moll, Executive Managing Directors Ryan Plummer and Andrew Briner and Associate Director Aaron Banks represented Hackman Capital Partners. Newmark Vice Chairman Blake Thompson and Managing Director Travis Bailey provided support on debt strategy and financing considerations throughout the transaction process.
“401 Coral Circle offered investors a rare opportunity to acquire a mission-critical facility with great power capacity backed by one of the fastest-growing names in the electric vehicle industry,” said Shannon. “The property serves the entire West Los Angeles market for Rivian, and with the tenant’s long-term commitment and South Bay’s industrial vacancy averaging just 1.4% over the past decade, it delivers a long-term, escalating income stream.”
Stumm added, "The South Bay is on fire right now, with advanced manufacturing firms taking space at a record pace as the aerospace and defense sectors rapidly expand. As the sector matures and seeks a permanent home in the South Bay, lease rates have reached all-time highs against a scarcity of available space. That combination is reflected in the pricing, which underwrites strong residual value in this asset."
The South Bay R&D market, which has averaged a vacancy rate of just 1.4% over the past decade, driving rent growth of 203% over that period. The submarket benefits from its proximity to the Ports of Los Angeles and Long Beach, the largest port system in the U.S., and Los Angeles International Airport (LAX), the nation's sixth-largest cargo airport, which together handle 40% of the country's inbound containers. El Segundo has also emerged as one of the nation's leading aerospace and advanced manufacturing hubs, anchoring major contractors alongside a fast-growing cluster of space and defense-technology firms, fueling sustained demand for specialized R&D space across the submarket, according to Newmark Research.
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