PASADENA, CA—Pasadena is experiencing an increased demand for new development, according to Mack Urban managing director John Gunn. Last week, GlobeSt.com reported that the company formed a joint venture with Mill Creek Development Co. and equity partner Cigna Investment Management to build a mixed-use property in Pasadena’s playhouse district. The development has already broken ground and will cost $50 million.
“Demand in Pasadena is high and it’s increasing,” Gunn tells GlobeSt.com. “The Playhouse district has experienced renewed interest and become much more popular recently with a lot more activity. The area has a high walkability factor with lots of shopping nearby, access to the Metro, City Hall and restaurants.”
Located at the corner of Union Street and El Molino, the location is in an extremely walkable neighborhood, and one of the primary reasons Mack Urban was attracted to the opportunity. “This is a prime location that is hard to duplicate. It’s a unique property with strong upside potential and there are high barriers to entry in this area,” explains Gunn. Although this is one of few developments underway in the area, upscale retail and restaurants are setting roots in the area as well.
The property is completely shovel ready. Before Mack Urban joined the project, Ken McCormick, owner of Mill Creek Development, assembled and entitled the site prior to Mack Urban coming on board. “We’ve had a long time relationship with him,” says Gunn about their choice to partner him. As for Cigna, it was an existing partner that shares Mack Urban’s investment values.