PASADENA, CA—Pasadena is experiencing an increased demand fornew development, according to MackUrban managing director John Gunn. Lastweek, GlobeSt.com reported that the company formed a joint venturewith Mill Creek Development Co. and equity partnerCigna Investment Management to build a mixed-use property in Pasadena'splayhouse district. The development has already broken ground andwill cost $50 million.

“Demand in Pasadena is high and it's increasing,” Gunntells GlobeSt.com. “The Playhouse district has experienced renewedinterest and become much more popular recently with a lot moreactivity. The area has a high walkability factor with lots ofshopping nearby, access to the Metro, City Hall andrestaurants.”

Located at the corner of Union Street and El Molino, thelocation is in an extremely walkable neighborhood, and one of theprimary reasons Mack Urban was attracted to the opportunity. “Thisis a prime location that is hard to duplicate. It's a uniqueproperty with strong upside potential and there are high barriersto entry in this area,” explains Gunn. Although this is one of fewdevelopments underway in the area, upscale retailand restaurants are setting roots in the area as well.