Newmark has announced the recapitalization of 3701 Doolittle Drive, a single-tenant, 124,400-square-foot office property and a separate 17,300-square-foot day-care center situated on 5.6 acres. The asset is 100 percent leased to Northrup Grumman on a triple-net basis.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Ken White, and Senior Managing Director Michael Moore, directed the transaction on behalf of the seller and buyer. In November 2017, Miramar Capital and its joint venture partner, an affiliate of Garrison Investment Group, acquired the asset for $36.7 million. With this current transaction, Miramar Capital has now recapitalized 3701 Doolittle with long-term equity, retaining full ownership.
Located adjacent to Northrop Grumman’s Space Park, 3701 Doolittle provides a seamless extension of Northrop Grumman’s main campus. Northrop Grumman, or its affiliates, has been a tenant at 3701 Doolittle since it was developed in 1986. The global aerospace and defense technology company recently signed a new seven-year lease extension through August, 2026.
Located on site is Northrop Grumman’s day-care facility that provides the day-care needs of all Northrop Grumman employees located throughout all of their El Segundo locations. The day-care is critical to the thousands of employees in and around Northrop’s Space Park facilities.
“With the recent lease extension and the continually improving fundamentals of this coastal, Westside Los Angeles market, the value of this asset has significantly increased in a short amount of time,” said Shannon. “There is additional upside for the new partnership though, based on other pending sale comparable of vacant buildings that are north of $400 PSF.”
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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