The portfolio comprises an 11-story, a 3-story and a small 1-story building plus a 6-story parking garage located at the intersection of North Lake Ave and East Colorado Blvd. The buildings, two of which have existed in downtown for more than and near a century, were collectively 63% leased to a diverse roster consisting of marketing, financial medical, legal, tech and other professional office tenants.
The buyer was a Los Angeles-based Private Investor that acquired the asset from 2 North Lake JV, LLC, a private family ownership located in Hong Kong and Los Angeles. 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 capital markets team led by Mike Condon Jr. and his partners Erica Finck, Bailey Dawson, and Marc Renard with Cushman & Wakefield represented the seller, while the buyer was unrepresented. The firm’s Shaun Stiles, Steven Marcussen and Katie Cowan also partnered in the sale providing best in class market expertise for the Pasadena market and were retained for future leasing of the asset.
“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,” said Mike Condon Jr., Vice Chairman. “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.”
Condon Jr continued, “This portfolio is positioned in an incomparable location at historic ground zero of Lake and Colorado in Pasadena’s central business district, walkable to many amenities plus easy freeway access. Furthermore, the portfolio’s 2 N Lake is the only building in Pasadena featuring numerous outdoor decks plus smaller private balconies—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.”
Erica Finck, Director added, “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. 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.”
The portfolio consists of an 11-story building at 2 N Lake Ave (built in 1985), a 3-story building at 911 E Colorado Blvd (built in 1926) and a small 1-story building located at 902 Boston Ct. (built in 1900). The properties are located within one block of Interstate 210 and the Metro Gold Line. They also boast a high walk score of 98 and bike score of 82. 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.
Shaun Stiles, Executive Director noted, “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 has also seen great in-migration from new tenants within the last few years.”