Majestic Realty Acquires El Segundo Flex Building From Hackman Capital Partners for $27M

Majestic Realty Co. Co., the commercial real estate firm led by Edward P. Roski Jr. and Reon Roski, has acquired a flex industrial property in El Segundo, California from Michael Hackman's Hackman Capital Partners for approximately $27 million. Newmark brokered the deal.

The transaction closed Aug. 28, 2026, and involves 401 Coral Circle, a 56,815-square-foot flex industrial, office and R&D building situated on roughly 2.5 acres just south of Los Angeles International Airport. The deal equates to approximately $480 per square foot.

A Fully Leased Asset With Long-Term Income

The property is 100% occupied under a lease structure in which Rivian, the electric vehicle manufacturer, subleases the entire building from Boeing. The lease runs through 2034, providing the new ownership with nearly eight years of remaining term.

The building blends industrial and office uses, comprising approximately 30,743 square feet of warehouse space and roughly 25,806 square feet of office space spread across two floors. The warehouse features 24-foot clear heights and six dock-high doors — a configuration described as uncommon for the El Segundo submarket. The property also carries 3,000 amps of power at 277/480V, three-phase, supporting light manufacturing, laboratory and R&D operations. Parking accommodates approximately 115 stalls.

Originally built in 1968, the property underwent a major renovation in 2007. Hackman Capital subsequently invested in additional improvements to the building's power infrastructure, high-bay warehouse and air-conditioned space following its 2018 acquisition, repositioning the asset for modern flex and R&D tenancy.

Hackman Capital's Hold and Exit

Hackman Capital Partners acquired 401 Coral Circle in 2018 for roughly $15 million, or approximately $270 per square foot, as part of a broader strategy to expand its footprint in El Segundo. The firm had been active in the submarket for at least a decade, including a 2016 acquisition of a 30-acre site on Douglas Street from Northrop Grumman, which Hackman converted into a creative office campus totaling approximately 550,000 square feet.

The 2026 sale at approximately $27 million represents a nominal value gain of roughly $12 million over the roughly eight-year hold period, an increase of more than 80% from the original purchase price. Capital improvements made during Hackman's ownership contributed to the asset's repositioning for higher-value tenancy.

Newmark, which brokered the transaction, identified the purchaser as Majestic Realty Co.

El Segundo's Industrial Submarket

The El Segundo industrial corridor, anchored by its proximity to LAX and the Rosecrans corridor, has attracted sustained institutional interest due to limited new supply and strong demand from aerospace, technology and advanced manufacturing tenants. The submarket's M1 light industrial zoning and infill coastal location constrain new development, supporting values for well-located existing assets.

The 401 Coral Circle transaction reflects continued appetite among long-term owners for single-tenant, leased industrial and flex assets in supply-constrained Southern California submarkets. For Majestic Realty Co., the acquisition adds a fully stabilized, income-producing asset to its portfolio with a lease profile extending nearly a decade.

About the Companies

Majestic Realty Co. is a privately held commercial real estate firm led by Edward P. Roski Jr. and Reon Roski. Hackman Capital Partners, founded by Michael Hackman, is a Los Angeles-based real estate investment firm with a focus on industrial, creative office and flex properties across major U.S. markets. Newmark is a publicly traded commercial real estate advisory and services firm.

Sources: Kidder Mathews