Tishman Speyer Sells LA Creative Office for $206M

555 Aviation. Image courtesy of Tishman Speyer.

A subsidiary of FS Credit Real Estate Income Trust Inc. has purchased 555 Aviation, a 259,754-square-foot creative office property in El Segundo, Calif., from Tishman Speyer for $205.5 million.

Tishman Speyer acquired the asset for $45 million in 2015, when it was a distribution and repair facility. After Xerox, the sole user, left two years later, Tishman Speyer invested $44 million in its transformation to an office campus.

FS Credit was advised by a subsidiary of FS Investments and sub-advised by Rialto Capital Management LLC. Natixis Corporate & Investment Banking provided a $126.7 million floating-rate acquisition loan, arranged by Cushman & Wakefield, which also represented the seller.

Office gem south of LAX

Built in 1966, 555 Aviation was fully renovated in 2018. The one-story property features floor-to-ceiling glass, high ceilings and open-air breezeways. Amenities include a fitness center, outdoor lounge areas, bike storage and 87 parking spaces, according to CommercialEdge data. The LEED Gold certified-property is fully leased to three long-term tenants: Fabletics, Saatchi & Saatchi and Belkin.

Located at 555 S. Aviation Blvd., the property is some 4 miles southeast of the Los Angeles International Airport and 1 mile west of Interstate 405. Residential, retail, dining and entertainment options are available within a 1-mile radius.

Executive Managing Directors Robert Rubano and Brian Share formed the Cushman & Wakefield team that arranged the financing on behalf of the buyer.

Earlier this month, Tishman Speyer closed the largest-ever investment sale in Silicon Valley, selling the Meta Campus in Sunnyvale for $707 million to CommonWealth Partners. The company had purchased the asset for $356 million only 14 months earlier.