The Southern California headquarters for a Richard Branson space company is going into the hands of another firm after Virgin Orbit parted ways with the real estate as part of a Chapter 11 bankruptcy auction.
Rocket Lab USA, a publicly traded launch and space systems company, was selected as the successful bidder to assume Virgin Orbit's lease at 4022 E. Conant St. in Long Beach, according to a statement. Long Beach, Los Angeles County's second-largest city by population, has long been a hub for the the aerospace industry, earning the nickname Space Beach.
The $16.1 million bid includes the roughly 144,000-square-foot space along with certain production assets, machinery and equipment. The bid doesn't include Virgin Orbit’s Boeing 747 aircraft, launch vehicles or mobile launch assets for its rockets, according to the statement.
Rocket Lab plans to use the space and other equipment to produce its Neutron, a reusable launcher that can power humans and other craft into space, according to the statement and the company's website.
"With Neutron’s design and development well-advanced, this transaction represents a capital expenditure savings opportunity to augment our production capability to bring Neutron to the launch pad quickly to serve our customers and their future success," Rocket Lab CEO and Founder Peter Beck said in the statement. "Securing the lease to the Conant Facility adds to our existing presence in Long Beach and provides co-located engineering, manufacturing, and test capabilities for our Neutron team."
Rocket Lab occupies roughly 94,000 square feet at 3881 McGowen Ave. in Long Beach already in addition to around 40,000 square feet at 7810 Shaffer Parkway in Littleton, Colorado, according to CoStar data. A company representative didn't respond to a request to comment from CoStar News.
Virgin Orbit said Tuesday it was selling its assets to four winning bidders at the auction and ceasing operations, according to a statement. The company filed for Chapter 11 Bankruptcy Protection in April.
The suburban Long Beach office market, which includes Rocket Lab's new space, has a 12.2% vacancy rate, below the greater L.A. average of 14.8%, according to CoStar data. The market's average rent is $33.09 per square foot, below the greater L.A. average of $42.31 per square foot.