Markwood’s 1.25 Acre Site in Pasadena Sells for $11.75M

Beverly Hills developer purchased property five years ago for $7 million

Published : Monday, September 23, 2019 | 2:53 PM

Beverly Hills-based developer Markwood today announced the sale of 66 Hurlbut Street, a 21,200-square-foot property in the epicenter of Pasadena’s “HeArt” district. The asset sold for $11.75 million, nearly double what Markwood purchased it for five years ago.

The site is home to a three-story concrete medical office building, covered with surface parking. Markwood purchased the building as a stable income generating asset, with sizable development potential.

“66 Hurlbut is one of a handful of sites within the South Fair Oaks area that benefits from the City of Pasadena’s General Plan as a ‘primary development opportunity’, and we immediately saw the value in acquiring a property that was endorsed by the city to be developed,” said Simon Aftalion, Markwood’s development director. “We purchased the site for $7 million in 2014 as Markwood was finding its footing, and since then, the firm has become more focused on development in the City of Los Angeles. This seemed like an ideal time to sell the Pasadena asset and utilize the high return to advance the investment vehicles we have in LA.”

Located in the heart of the surging Pasadena medical market, 66 Hurlbut is flanked by Huntington Memorial Hospital and the newly built Shriners for Children Medical Center to the north and the Art Center College of Design to the south. The building’s current tenant, Pacific Clinics, has occupied the property for over 25 years on a lease expiring in June 2023.

JLL Capital Market’s Evan Lewitt and Will Poulsen represented Markwood in the transaction. Nicholas Borrelli of Coldwell Banker Commercial represented the buyer, a private doctor, who plans to hold the building long-term.

According to data from CoStar Group, the vacancy rate for medical office buildings in Pasadena’s medical corridor is 5.1%, outperforming the overall market. Medical office rents have grown nearly 25% in the corridor since 2013. An influx of medical office properties, including the expansion of Huntington Hospital, has cemented the area as a medical hub, but there is room in the area for continued growth and progress.

“This was an incredibly unique sale because of the many potential uses for the site, which is currently a medical office, but zoned for multifamily,” said Lewitt, a senior associate at JLL. “This, in addition to the property’s desirable Pasadena location, attracted medical office investors, multifamily and senior housing developers, and creative office users. The large buyer pool that our marketing efforts captured created a competitive bid and helped us achieve full asking price for our client.”

Additional key developments nearby include a four-story 121,328-square-foot medical building that will soon break ground at 550 E. Colorado Boulevard, the 80,000-square-foot Kaiser Permanente School of Medicine and the 82,000-square-foot life sciences campus being built by Alexandria Real Estate Equities. Also, California Institute of Technology recently commenced construction of the $200 million Chen Neuroscience Research Building near Del Mar Boulevard and Wilson Avenue.

 

 

 

 

 

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