Pacific Oaks Education Corporation to Purchase $21.5 Million Property, Also Plans $2 Million Renovation

Pacific Oaks Education Corporation (POEC), the operating entity of Pacific Oaks College and Pacific Oaks Children’s School in Pasadena, has entered into a contract to purchase the entire parcel of land where the college and its children’s school currently stands.

The purchase will be discussed in a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing Monday, April 24, during the Pasadena City Council’s regular meeting.

POEC is currently leasing the real property located at 45 Eureka Street, measuring about 15,505 square feet, and 55 Eureka Street, about 28,787 square feet, from the current owners MFT Properties LLC, NW Innovation Center LLC and MMA Properties LLC. POEC also plans to buy the buildings at 433 North Fair Oaks Avenue, which measures about 25,827 square feet, and at 100 West Villa Street, approximately 5,823 square feet, for a total purchase price of approximately $21.5 million.

POEC says it would likely spend about $2 million in renovation costs for the 45 Eureka Street and 55 Eureka Street properties. The renovation will includea redesign of the library, classroom improvements, accessibility improvements and ADA enhancements, creation of new common spaces for students and external community events, and additional functional workspaces for faculty, staff and students.

Once acquired, these properties will be owned by POEC. One floor of the building located at 433 North Fair Oaks Avenue will continue to be leased to the State of California Unemployment Insurance Appeals Board, and the other floor, currently vacant, may be leased to unrelated third parties or used by POEC in its educational operations.

The building at 100 West Villa Street will initially continue to be leased to third parties as it is now, presently to Vance Wealth Group, Inc. and Braun Fitness.

The purchase and the renovation will be financed by the issuance of Educational Facilities Revenue Notes by the Illinois Finance Authority in the amount of not more than $22 million to POEC.

Since the properties are located in the City of Pasadena, Section 147(f) of the Internal Revenue Code of 1986 requires that for the notes to be issued on a tax-exempt basis, the issuance must be approved by resolution of the Pasadena City Council as an “applicable elected representative” of the governmental unit having physical jurisdiction over the site of the project. Before the approval, the City Council must hold a public hearing about the whole purchase and renovation project and the issuance of the notes, preceded by notice of publication in a newspaper of general circulation in the City.

The Pacific Oaks College is located at the most southern edge of the northwest Pasadena community, a part of the City considered to be rich with history of social justice and which houses an economically diverse population within the City. The location is significant in that it cements the strong link with the Pacific Oaks College mission and communicates a commitment to the local community.

The investment in the purchase and improvement will allow Pacific Oaks College, as an educational institution, to contribute to the economic stability of this community, attract and educate students who are invested in giving back to their communities, and provide employment opportunities.

Additionally, the project will provide Pacific Oaks College with a permanent location to further develop as a community leader.

POEC currently employs approximately 302 individuals and anticipates employing some 332 individuals one year following the project completion date, and about 365 individuals two years following the project completion date.

Currently, the College has an enrollment of 1,198, and the Children’s School enrollment is at 207.