Newmark has arranged the sale of 401 Coral Circle, a research-and-development office facility in El Segundo, California, for $27.25 million. The property totals 56,815 square feet and is fully leased to Rivian on a triple-net basis. Majestic Realty acquired the asset, which serves as a single-tenant R&D and service facility for the electric vehicle maker.
Newmark represented the seller, Hackman Capital Partners, in the transaction. The brokerage team included Kevin Shannon, Rob Hannan, Ken White, Laura Stumm, Michael Moll, Ryan Plummer, Andrew Briner and Aaron Banks. The sale underscores ongoing investor interest in stabilized, single-tenant R&D product with long-term credit tenancy.
Hackman Capital Partners originally acquired 401 Coral Circle in 2018 for $15.3 million. Following that acquisition, the firm repositioned the property and leased it first to Boeing and later to Rivian. Over the course of Hackman’s approximately eight-year hold, the investment generated a significant increase in value, culminating in the $27.25 million disposition.
The latest transaction price equates to roughly $480 per square foot, which the parties note represents a 78% increase in value compared with Hackman’s 2018 basis. The outcome is described as a reflection of the strength and desirability of the South Bay market, where well-located R&D and office assets with committed tenancy continue to attract institutional buyers.
Originally constructed in 1967, the building underwent a renovation in 2020. Today, the facility functions as both a customer-facing service center and a secure R&D hub for Rivian. It supports the company’s consumer and commercial vehicle lines, combining front-of-house service operations with back-of-house technical and development space in a single location.
The transaction highlights how targeted capital improvements and strategic leasing to brand-name tenants can reposition mid-century product into competitive R&D space. With the property fully leased under a triple-net structure and backed by a high-profile electric vehicle manufacturer, the asset offered the buyer stable in-place income in a supply-constrained South Bay submarket.
