PASADENA, CA—Ethika Investments has allocatedcapital through its Diversified Opportunity Real EstateFund for the purchase of an institutional-qualityoffice property located at 199 South Los RoblesBlvd. in Pasadena, CA. In an earlier story, reported that its affiliatethe Laurus Corp. purchased the property from ajoint venture between Heitman and the RuthGroup for $53 million.

“Ethika looks for office opportunities in high-barrier to entrymarkets that exhibit strong job growth in sectors such astechnology, health care, financial services and energy,”Austin Khan, chief investment officer at EthikaInvestments, tells “Los Angeles, and morespecifically, Pasadena, not only meets those criteria but is amarket where there is a high level of institutional demand forwell-located class-A office product. After completion of acomprehensive renovation, this building will be one of the mostattractive destinations for tenants seeking space in the Pasadenaarea.”

Ethika plans to invest $5 million in the property to update thebuilding's common areas, including elevators, lobbies andcorridors, as well as the tenant units and the retail space in thebuilding. Some capital will also be allocated to improve the energyefficiency in the building. “Pasadena is still trending backtowards its 2007 peak, when office vacancy fell below 3% andclass-A rents rose into the low $40's,” adds Khan. “199 LosRobles has an excellent tenant base that we believe will be eagerto grow into the building as we enhance it with more amenities anda modern look and feel, and once fully leased, it will be a highlydesirable asset for longer-duration institutional capital.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.