Barker Pacific JV Attracts Tech Market

PASADENA, CA—Barker Pacific Group has formed a new joint venture with LNG Management to acquire and renovate its historic office building at 225 East Colorado Ave. in Old Town Pasadena, CA. Barker Pacific was part of both the selling side and the buying side as it switched out its former capital partner, Wells Fargo Real Estate Capital Advisors. The property is now well capitalized for a creative office renovation that will likely attract the growing technology office demographic in the Pasadena market.

“Wells Fargo Real Estate Capital Investors was interested in harvesting a gain, and so we agreed on a valuation and formed a new venture to be the purchaser,” Michael Barker, CEO of Barker Pacific Group, tells GlobeSt.com. “The property never actually went on the market and it was independently valued so that we all were treated fairly. The new ownership is better capitalized going forward to add more technology service and make improvements to the building.”

The 50,000-square-foot property is currently 96% occupied by a diverse tenant mix, although Barker says that it has been consistently moving toward more technology-based firms. The new joint venture plans to invest $2 million in building improvements that will include high-tech features and modern interiors, while maintaining the historic charm of the building. Barker intends that the renovations will help drive tech tenants to the buildings and drive rents up.

“The location is stellar and we have a good tenant mix, so it is just a matter of improving the building going forward and pushing the rents with the better improvements,” says Barker. “It has a very good tech community and I think it is a growing tech community. We think the area is really ripe for technology-oriented companies, and these companies tend to like older historical buildings that have the right features. The tenant mix is currently heading in that direction.” Tenants in the building include Analytics Media Group, Dilbeck Realtors and Smith Brothers Restaurant Corp.

Several historic buildings are being renovated to become more appealing to modern tenants, while preserving the history of the property. Last week, GlobeSt.com reported that the Pasadena Chamber of Commerce building underwent a significant renovation to earn LEED-Silver certification.