Newmark Arranges $27.25 Million Sale of Rivian-Leased R&D Facility in El Segundo to Majestic Realty Co.

Newmark has arranged the $27.25 million sale of 401 Coral Circle, a 56,815-square-foot mission-critical research and development facility in El Segundo, California, fully leased on a triple-net basis to electric vehicle manufacturer Rivian. Hackman Capital Partners sold the property to Majestic Realty Co., with the transaction closing August 28, 2026.

The sale price of approximately $480 per square foot represents a 78% increase in value over Hackman Capital Partners' eight-year hold period. Hackman originally acquired the property in 2018 for $15.3 million, subsequently repositioned the asset, and leased it first to Boeing and then to Rivian.

Deal Team and Transaction Structure

Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairmen Rob Hannan, Ken White, Laura Stumm and Michael Moll, Executive Managing Directors Ryan Plummer and Andrew Briner, and Associate Director Aaron Banks represented the seller, Hackman Capital Partners. Newmark Vice Chairman Blake Thompson and Managing Director Travis Bailey provided support on debt strategy and financing considerations throughout the transaction process.

"401 Coral Circle offered investors a rare opportunity to acquire a mission-critical facility with great power capacity backed by one of the fastest-growing names in the electric vehicle industry," Shannon said. "The property serves the entire West Los Angeles market for Rivian, and with the tenant's long-term commitment and South Bay's industrial vacancy averaging just 1.4% over the past decade, it delivers a long-term, escalating income stream."

Property Overview: 401 Coral Circle

Situated on a 2.14-acre site, 401 Coral Circle was originally built in 1967 and underwent a significant renovation in 2020. The single-tenant building features 24-foot clear heights, six dock-high doors, 3,000 amps of power, a car wash, and 110 parking stalls. The facility functions as both a customer-facing service and demonstration center and a secure R&D facility, supporting Rivian's consumer and commercial vehicle lines — including the R1S, R1T, and its Amazon-partnered Rivian Electric Delivery Van.

Rivian occupies the entire building, with the property structured on a triple-net basis. The facility serves as Rivian's El Segundo Service and Demo Center, covering the broader West Los Angeles market. Rivian, founded in 2009 and headquartered in Irvine, California, is a publicly traded electric vehicle manufacturer with a market capitalization of approximately $21.5 billion.

South Bay Market Context

The South Bay R&D submarket has averaged a vacancy rate of just 1.4% over the past decade, a dynamic that has driven rent growth of 203% over that period, according to Newmark Research. The submarket benefits from its proximity to the Ports of Los Angeles and Long Beach — the largest port system in the United States — and Los Angeles International Airport, the nation's sixth-largest cargo airport. Together, those facilities handle 40% of the country's inbound containers.

El Segundo has emerged as a hub for aerospace and advanced manufacturing, anchoring major contractors alongside a growing cluster of space and defense-technology firms. That concentration of specialized occupiers has sustained demand for R&D space across the submarket.

"The South Bay is on fire right now, with advanced manufacturing firms taking space at a record pace as the aerospace and defense sectors rapidly expand," Stumm said. "As the sector matures and seeks a permanent home in the South Bay, lease rates have reached all-time highs against a scarcity of available space. That combination is reflected in the pricing, which underwrites strong residual value in this asset."

Value-Add Execution and Investment Outcome

Hackman Capital Partners' repositioning of 401 Coral Circle illustrates a value-add strategy centered on upgrading an older industrial asset to attract credit tenants in high-demand sectors. After acquiring the property for $15.3 million in 2018, Hackman oversaw a 2020 renovation and secured successive leases from Boeing and then Rivian, transforming the 1967-vintage building into a specialized R&D and service facility. The $27.25 million exit price reflects a nominal gain of approximately $12 million over the hold period.

For Majestic Realty Co., the acquisition adds a long-term, NNN-structured income asset in one of the tightest industrial submarkets in Southern California, backed by a publicly traded tenant with a lease extending to 2034.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate advisory and services firm serving institutional investors, global corporations, and lenders. For the twelve months ended June 30, 2026, Newmark generated revenues of more than $3.6 billion. As of that date, Newmark and its business partners operated from over 195 offices with more than 10,000 professionals across four continents.

Sources: Newmark Press Release, August 28, 2026