El Segundo, CA

Cambria Suites Hotel – Los Angeles Airport – El Segundo, CA

The El Segundo Cambria Suites is an example of FPG Development Group’s ability to penetrate a market with significant barriers to entry in an off-market transaction at a significant discount to market cost.  This project represented an opportunity to develop in the heart of one of the most desired markets in the country with an occupancy that is consistently over 80%.  This is due to its location 1.5 miles south of the airport and the fact that El Segundo is headquarters to multiple Fortune 500 companies, including Northrop-Grumman, Raytheon, Boeing, Mattel, Unocal, Computer Science Corporation, Chevron, and DirecTV, more than any city in California except San Francisco. 

Many issues were encountered during the approval process which took approximately 2 years to entitle with the City of El Segundo. In order to obtain final approvals in April 2010, the applications filed were:

  • Development Agreement
  • Specific Plan
  • Zoning Change
  • Zone Text Amendment
  • General Plan Amendment

Summary:                         

  • Rooms:  152
  • Total Acres:    1.97 acres
  • Time to Develop:  2 years

Demand Drivers:

  • Premier, infill location near Los Angeles International Airport (1.5 miles), I-405 (1.25 miles), I-105 (1.25 miles), Pacific Ocean (2.25 miles).
  • El Segundo is home to many Fortune 500 companies, including Northrop-Grumman, Raytheon, Boeing, Mattel, Unocal, Computer Science Corporation, Chevron, DirecTV.
  • 9.0 million total square feet of office space in local market with approximately 16% vacancy.
  • Hotel market is consistently above 80% occupancy with high average daily rate.