Michael Coen, managing director of GE Real Estate, comments that, "Legacy turned to GE when it needed financing in a very tight timeframe." The financing is an interest-only, three-year loan with two one-year extension options. The loan included a hold-back of $4.5 million for future capital expenditures and tenant improvements.
According to Anthony Tabaniag, director at GE Real Estate, Legacy acquired the property as part of its strategy of pursuing deals designed "to add value to well-located properties in the Los Angeles area where rent growth continues to be strong despite the economic environment." Legacy notes that the 70 Lake Ave. building sits on a high-visibility corner in Pasadena's central business district, with convenient access to the 110, 134 and 210 freeways and Gold Line rail station, within walking distance to numerous shops, restaurants and other services.
Legacy plans extensive capital improvements for 2008, including renovations to the building lobby, upper lobbies, corridors, elevator cabs and bathrooms, as well as new furniture, signage, railings, planters and exterior improvements. The building features floor plates of 16,500 sf, with parking at a ratio of three stalls per 1,000 sf of office space in a five-level parking structure. The building sale was brokered by Jay Borzi, Steve Silk and Stephen Somer of Eastdil Secured.
The acquisition of the Pasadena office building is aligned with Legacy's strategy of making direct investments in value-added office, R&D and industrial properties located in Southern California, the San Francisco Bay area, Denver and Seattle. Since 1972, the company's commercial division has acquired, developed or managed 126 million sf of commercial real estate at a cost of more than $10 billion.
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