A large land sale involving the property beneath numerous popular South Lake Avenue stores including The Shops on Lake project is in the offing, according to a real estate company representing the seller.
A Hanley Investment Group Real Estate Advisors spokesperson said the fee-simple land deal encompasses two parcels totaling 5.32 acres with a total of 131,153 square feet of building at 345 and 401 South Lake Avenue.
“This is a once in a lifetime opportunity for an investor to purchase over five acres of land along South Lake Avenue in the heart of the premier shopping district in Pasadena,” said Hanley Investment Group Senior Vice President Carlos Lopez, the listing agent. “A long-term, triple-net ground lease is one of the most secure forms of real estate investment. ”
“We are selling the ground, which is subject to a long-term lease with the Shops on Lake that is above it,” Lopez said, adding that the shops are not for sale and are owned by a different entities.
Approximately 61 years remain on the lease term for the buildings situated on the property, Lopez said, and the lease includes two 10-year options and increases every five years.
“The Macy’s store is not for sale,” Lopez said, adding that the sale will not create a disruption for shoppers no matter the store.
100 percent of the improvements revert to the landowner upon expiration of the ground lease, he said.
The fee offered land lies under The Shops on Lake Avenue, which is anchored by Macy’s (the Macy’s property is not included in the offering), T.J.Maxx, Trader Joe’s, Jos. A Bank, Orvis, Sola Salon, Paul Martin’s, Breakthru Fitness, Corner Bakery, Gymboree, AT&T, Nekter Juice Bar, Pieology Pizzeria, Tokyo Shabu Shabu, Coffee Bean & Tea Leaf, Yogurtland, and Massage Envy. Tenants on South Lake Avenue, such as Williams-Sonoma, Talbots, Pacific Sales, Corner Bakery and Ross Dress for Less, rank among the highest sales volumes for their respective chains.
Eric Duyshart, Division Manager at the Economic Development Department said this kind of real estate offering for sale is not uncommon.
“New buyers might have some new ideas, but it is quite normal for commercial properties to change hands as different developers and investment groups see opportunity,” Duyshart said.
The South Lake Avenue corridor consists of 12 blocks of shopping and dining that include over 600 businesses in addition to two million square feet of Class A office.
No asking price is given, indicating that the pool of potential buyers will bid, Lopez said.
For more information, visit www.hanleyinvestment.com