Pasadena Complex Hooks $64M

Mary Ann King of the Costa Mesa office of Moran & Co., who has negotiated quite a number of large deals involving institutional investors, says the property attracted multiple prospective buyers and was one of the most complex deals that any of the participants had ever closed. She explains the transaction was complex because the property carries an affordability requirement due to its tax-exempt bond financing as well as being subject to other bond payments.

King and Scott Davis of Moran's Costa Mesa office represented buyer and seller in the sale. Holly Street Village is a few blocks from Old Pasadena and the Paseo Colorado retail center, King notes, and the property borders Memorial Park station of the Gold Line Light Rail project, which is under construction and due to begin running later this year.

According to King, some of the largest institutional multifamily investors in the country sought to acquire the property. Completed in 1994, the complex consists of nine four-story buildings on 5.2 acres, next to a landscaped city park. Scott Davis tells GlobeSt.com that the complex includes the historic Hall of Justice, which was originally built in 1930 to house Pasadena's police department, judges' chambers and men's jail. The Hall of Justice building has been converted into 16 luxury lofts.

The property's two-level underground parking garage has 502 parking spaces, with an additional 143 parking spaces above ground. Features include an outdoor swimming pool with a spa and sun deck, and fitness center.

The Holly Street Village apartments range from studios to three-bedroom units, with monthly rents of approximately $1,400 to $2,600. The studio apartments are 550 sf while one-bedrooms range from 644 sf to 830 sf and the two-bedrooms from 963 sf to 1,184 sf. The three-bedrooms measure 1,412 sf. The property was approximately 95% occupied at the time of the sale.