3-Building Office Portfolio in Pasadena Sells for $80 Million

A commercial real estate portfolio consisting of three buildings containing more than 242,000 square feet of space in the heart of Pasadena has been sold for $80 million, the company that brokered the deal announced this week.

The properties, which were sold to a yet-unnamed buyer based in Los Angeles, include an 11-story building at 2 N. Lake Ave. that was built in 1985, a three-story building at 911 E. Colorado Blvd. that was constructed in 1926 and a single-story building at 902 Boston Court that dates back to 1900, the real estate firm Cushman & Wakefield said in a written statement. A six-story parking structure at the corner of Lake Avenue and Colorado Boulevard is also included in the transaction.

“The 2 N Lake building also features a one of a kind penthouse floor with high ceilings and a large exterior private patio, a unique rooftop helipad, and views of the San Gabriel Mountains,” according to the statement.

The office space was 63% leased out to “a diverse roster consisting of marketing, financial, medical, legal, tech and other professional office tenants,” the statement added.

The portfolio was sold by 2 North Lake JV, LLC, which Cushman & Wakefield described as a private family ownership in Hong Kong and L.A.

“The buyer plans for a major Class A repositioning of the property, including redoing the lobbies, activating the outdoor areas, and other interior and exterior upgrades to attract and retain office tenants,” the statement said.

The deal represented a positive sign for the local economy, Cushman & Wakefield Vice Chairman Mike Condon Jr. said.

“This portfolio sale of the high vacancy value add office portfolio is another indicator that the office market recovery is in full effect and investment is being recalibrated back into this sector,” he said. “2 N Lake Avenue represents one of the few remaining reposition opportunities (value-add) in one of LA’s strongest submarkets and that also boasts some of Southern California’s best demographics and leasing fundamentals.”

In addition to the buildings’ prime location in Pasadena, “the portfolio’s 2 N Lake is the only building in Pasadena featuring numerous outdoor decks plus smaller private balconies,” Condon said. “It also has an outdoor park area. Each of these characteristics remain in high demand by occupiers in today’s market where fresh air is more sought-after.”

Cushman & Wakefield Director Erica Finck was also optimistic about Pasadena’s prospects.

“The sale of 2 N Lake is a testament to the outstanding long-term viability of the Pasadena office market, and office product as a top asset class overall,” she said. “It is also proof that capital continues to view office as an important and accretive component of their overall portfolio. We expect to see greater acceleration in office investment over the coming months.”

Company Executive Director Shaun Stiles said Pasadena is “the Tri-Cities’ largest and most diverse submarket, and along with Burbank, has consistently achieved the highest rent rates in the market.”

“And as a hub for tech, [Pasadena] has also seen great in-migration from new tenants within the last few years,” he said.

More information on Cushman & Wakefield is available on the company’s website at cushmanwakefield.com.