Varda Space Industries, a company pioneering in-orbit pharmaceutical manufacturing, has secured a major new facility in El Segundo, California. The company will expand its operations into a 205,443-square-foot campus that was once the creative hub for toy giant Mattel, where iconic products like Barbie and Hot Wheels were developed.
The move signals a significant scaling-up for Varda, allowing the space-tech firm to increase its production of spacecraft designed to create purer pharmaceuticals in the microgravity environment of Earth's orbit. The expansion solidifies El Segundo's reputation as a growing nucleus for the modern aerospace industry.
Key Takeaways
- Varda Space Industries has leased a 205,443-square-foot facility at 2031 E. Mariposa Ave. in El Segundo.
- The property was formerly Mattel's research and development center for toys like Barbie and Hot Wheels.
- The expansion is intended to help Varda manufacture its orbital capsules and satellite platforms at scale.
- Varda plans to build 10 additional spacecraft by the end of next year and has over 10 missions scheduled through 2028.
From Toy Design to Spacecraft Production
The facility on Mariposa Avenue, which for decades housed the imagination behind some of the world's most famous toys, will soon be repurposed for a new era of innovation. Varda Space Industries is set to transform the space into a state-of-the-art spacecraft production and assembly plant. The company will take possession of the building in December and anticipates a four to eight-month period to build out the specialized facilities.
This expansion is a critical step for Varda as it ramps up its mission cadence. The company specializes in creating automated, miniature laboratories that are launched into orbit. Inside these labs, the microgravity environment allows for the growth of molecular crystals for pharmaceuticals that are significantly purer than those produced on Earth. These labs return to Earth in re-entry capsules, also built by Varda.
El Segundo's Aerospace Corridor
The city of El Segundo has a long and storied history with the aerospace and defense industries. The industrial property vacancy rate is just 3.4%, driven by high demand from space companies, government contractors, and technology startups. The new Varda facility is located near Los Angeles Air Force Base, which is headquarters to the Space Systems Command.
A Strategic Expansion in a Crowded Hub
Finding adequate space for growth is a significant challenge for successful startups in El Segundo's competitive real estate market. Varda's new 9-acre campus provides the necessary room to scale up operations without leaving the city, which is a strategic advantage given its proximity to suppliers and talent.
This is not Varda's first expansion in the area. Last year, the company subleased approximately 55,000 square feet of lab space from alternative protein company Beyond Meat at a nearby Douglas Street location. The new Mariposa Avenue site will become the third pillar of a growing Varda campus, with all three buildings located within a one-mile radius.
Jonathan Barr, Varda's Chief Operating Officer, confirmed the company's intention to connect its facilities. "We already have Varda-branded shuttles running up and down Aviation Boulevard," he said, indicating a plan to create a cohesive, multi-site operation.
The SpaceX Connection
Varda Space Industries is part of a new generation of aerospace companies with strong ties to SpaceX. Varda's co-founder and CEO, Will Bruey, is a former avionics engineer at SpaceX. The company relies on SpaceX's Falcon 9 rockets to launch its spacecraft from Vandenberg Space Force Base, leveraging the radically lower launch costs that have defined the modern space race.
A Return to Aerospace Roots
For the property itself, the lease to Varda represents a return to its original purpose. The complex was first built in the 1940s as an aircraft facility, contributing to the region's role in the aerospace sector long before it became a center for toy innovation. Now, it will once again be at the forefront of advanced engineering.
The building's owner, GPI Cos., acknowledged this historical continuity. Michael Woods, a partner at the firm, commented on the new tenant.
"The Mattel facility has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story. We are proud to support a company that is genuinely pushing the boundaries of what’s possible."
Varda has already demonstrated its capabilities, with its fifth capsule launched in November and successfully returned to Earth in late January. With its next mission scheduled in the coming weeks and more than 10 missions booked on Falcon 9 rockets through 2028, the new facility will be crucial for meeting its ambitious production goals.
The Future of Manufacturing in Orbit
Varda's business model is built on the unique properties of the space environment. By manufacturing high-value products like pharmaceuticals in microgravity, the company aims to create a new industrial supply chain that extends beyond Earth. It holds contracts not only with pharmaceutical companies but also with the U.S. military, which uses the high-speed re-entry of Varda's capsules to test technologies at hypersonic speeds.
With the new factory, Varda is positioning itself to lead this nascent market. The ability to produce spacecraft at scale is the primary bottleneck for in-space manufacturing. By securing a facility with the size and history of the former Mattel plant, Varda is making a clear statement about its intent to industrialize low-Earth orbit, one pharmaceutical crystal at a time.