Century Business Center at Hawthorne Airport
A partnership led by Kearny acquired the 86-acre, 2.6 million square-foot manufacturing facility in Hawthorne, California from Vought Aircraft Industries in July 2005 for $61 million. Kearny is very proud of its’ eight year effort to completely transform this tired, underutilized, single user aerospace manufacturing plant into a vibrant new business hub with 30 new businesses. Total project costs were approximately $150 million.
Situated near the intersection of the 405 and 105 freeways, and immediately south of the Hawthorne Airport, Century Business Center (“CBC”) included 27 industrial and manufacturing buildings, two office buildings, two wind tunnels and one hangar previously leased to Northrop Grumman.
Triump Group (formerly Vought) continues to lease the western portion of the property which are used to manufacture Boeing 747 fuselages. Triump renewed its lease thru 2015 and this 42 acre 1.4 million sf manufacturing building was sold as a leased investment for $40 million in April 2010.
The 1.1 million square foot, 36-building eastern portion of the property was completely reborn after Kearny’s acquisition. Kearny completed an EIR, Tentative and Final Map, Specific Plan, Development Agreement and development plans. Kearny demolished 307,000 sf of buildings which were replaced with 204,000 sf of new small industrial buildings which were completed 3rd Quarter 2008. The 16 existing buildings totaling 776,000 sf have all been sold or leased to new companies representing a variety of industries and companies including serving as the design studios for Tesla Motors and as the world headquarters for Space-X, who have brought more than 3,000 new jobs back to the community.
Some of the site has been converted to aviation related uses for the adjacent Hawthorne Airport. Under a separate partnership, Kearny controls the non-runway portions of the airport through a 45-year ground lease executed in January 2005.
CBC is one of the most complicated master planning projects Kearny has tackled. Issues included determining whether to keep or demolish buildings, coordination with environmental remediation efforts by Northrop, determining if the airport adjacent buildings should be acquired by the Airport partnership and made part of the Airport, dealing with both the FAA and CalTrans in addition to the City of Hawthorne with entitlement processing, and separating utilities designed for a one user campus to service a multiple tenant business park.
“Many issues arose during contract negotiations and closing due to the number of complexities of the transaction. Kearny and Vought’s diligence and willingness to find solutions that worked for both firms led to the successful closing. We look forward to many years of being their major tenant and building on our positive relationship with Kearny to date.”
- Randy Benoot, Manager of Real Estate, Vought Aircraft Industries
Architect: Ware Malcomb and Hill Pinkert
General Contractor: Millie and Severson
Civil Engineer and Planning: Psomas