Pair of Distinctive Mixed-Use Buildings in North Pasadena Sells for $13.4 Million

Two buildings on opposite corners of the intersection of East Washington Boulevard and North Hill Avenue known as the “Shops on Hill” have been sold to a new owner for approximately $13.4 million.

The 32,685 square feet mixed-use retail site in a quiet neighborhood at the northern edge of Pasadena was picked up by Engine Real Estate, LLC, whose President David Walker said his company likes that the buildings were older but renovated properties.

“We just don’t buy gleaming new buildings,” Walker said.

Walker said his company searches out buildings that have a mixture of retail and residential space, which he said has proven to be a successful combination.

The property contains twelve single apartments on the second floor and retail spaces on the ground level.

The buildings are emblematic of the neighborhood’s distinctive architecture. They have traditionally been home to small boutique stores and service enterprises.

“Shops on Hill is an example of an e-commerce resistant retail center,” said CBRE Group, Inc.’s Ken McLeod. “It mostly features daily-need shops and other retail services that have proven irreplaceable.”

CBRE’S Ken McLeod, Alex Vasquez, and Tim Kuruzar represented the seller, Greenbridge Investment Partners, Inc. and the buyer in this transaction.

Walker said a prime vacancy on the first floor when leased will add value to the cash flow.

He said while the retail tenants increase traffic to the property, it is the residential side of a mixed-use retail site that can add stability.

“Apartments tend to always, always, always do well,” Walker said, adding that the increased retail traffic provides better opportunities for vacancies to be seen.

Walker said extensive marketing is planned to enhance the leasing activity out at the property.

“We seek out desired tenants that may not necessarily be national,” Walker said. “We look to bring people into the market that aren’t currently there, that we think would do well.”