Newmark Arranges $55 Million Sale of 5210 Pacific Concourse to UCLA Health

November 7, 2024 9:00 AM
Newmark^[1] announces the firm has arranged the sale of 5210 Pacific Concourse, a premier Class A office building located in the El Segundo submarket of Los Angeles, to The Regents of the University of California. Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairmen Ken White, Rob Hannan, Laura Stumm and Michael Moll, Executive Managing Directors Bill Bloodgood and Director Hayden Clegg represented the seller, Karney Properties.

The 169,791-square foot building includes a partial lab build-out and was 43% leased to Siemens through October 2024. UCLA Health, which is governed by The Regents of the University of California, intends to fully occupy the building upon expiration of Siemens’ lease.

“The sale of 5210 Pacific Concourse to UCLA is a win-win for buyer and seller,” said Shannon. “The building provides UCLA with great life science bones – a steel frame, low-rise construction building with lab improvements on an oversized 9.2-acre site that provides long term optionality.”

“This sale exemplifies a growing trend of owner-users capitalizing on pricing dislocation in the market,” said Stumm. “Karney executed a phenomenal renovation that attracted the buyer to this site, while maximizing cash flow from a long-term lease.”

UCLA Health will take over the building following the expiration of Siemens’ lease in October 2024. Siemens’ departure clears the way for UCLA Health to fully occupy the building, which already features significant lab infrastructure.

5210 Pacific Concourse presents excellent accessibility, with proximity to the I-405 and I-105 freeways, Los Angeles International Airport and the Metro Green Line. The building’s existing infrastructure—including its flexible design, large floor plates and above-standard power—aligns with the needs of top-tier tenants like UCLA. The property’s 9.2-acre site also provides future development potential, allowing for up to approximately 230,000 square feet of new construction.

[1] Dba Newmark Knight Frank in California

About Karney Properties
Karney Properties is a family-owned institutionally operated, real estate investor based in Southern California. For more than 70 years, Karney Properties has acquired, owned, developed, financed, and managed a dynamic portfolio of industrial, logistics, production and creative office properties. The vast majority of Karney’s assets are located in prime areas throughout the Los Angeles and Orange County markets, with portfolio growth focusing on these core markets with strategic expansion in Phoenix and Las Vegas.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ended December 31, 2023, Newmark generated revenues of approximately $2.5 billion. As of June 30, 2024, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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