Hackman Capital Sells El Segundo Flex Building for $27M as LA Industrial Market Heats Up
Bisnow · 29 August 2026
TL;DR
Majestic Asset Management has acquired a 57,000 square-foot flex industrial building at 401 Coral Circle in El Segundo, California, from Hackman Capital Partners for approximately $27M — translating to around $480 per square foot. Hackman originally purchased the property in 2018 for roughly $15.3M, representing a significant appreciation over eight years. The building is currently fully occupied by electric vehicle maker Rivian, which is subleasing from Boeing under a lease running to 2034. The deal arrives amid broader momentum in the Los Angeles industrial market, where leasing activity hit 15.7 million square feet in Q2 2026 — a 40% year-on-year increase, per CBRE. El Segundo and surrounding South Bay cities are attracting aerospace and defence-tech tenants, underpinning demand.
Our take
This transaction is firmly a US commercial property story, with no direct South African market implications. That said, it carries useful signals for SA property readers — particularly those watching industrial and flex-space trends globally. For SA buy-to-let investors and commercial property funds, the El Segundo deal illustrates how long-term, creditworthy anchor tenants (in this case Boeing and Rivian) can dramatically lift asset values — a 76% price increase over eight years on a single-tenant flex building. SA industrial nodes like Johannesburg's Linbro Park, Cape Town's Airport Industria, and Durban's Riverhorse Valley are seeing similar demand from logistics and tech-adjacent occupiers, and the same principle applies: secure tenants on long leases de-risk assets and support premium exit pricing. The broader LA industrial leasing surge (40% year-on-year) also mirrors what SA commercial property analysts have noted locally — industrial remains the most resilient commercial asset class post-pandemic, outperforming office and retail. For SA investors benchmarking global comparables, flex industrial with strong covenants continues to command attention. Worth watching, but no immediate action required for local buyers or tenants.