LOS ANGELES—EverWest Real Estate Partners has acquired a two-story 239,000-square-foot office building in Pasadena from DivcoWest. The purchase price was not disclosed, however, sources unrelated to the deal tell GlobeSt.com that the property traded hands for $67 million. DivcoWest recently completed a nearly $6 million renovation on the property, adding creative floor plans that can accommodate both large and medium tenants.
“The sellers purchased the property in 2013 with a 42% occupancy as a value-add opportunity and completed a $5.68 million renovation which included building HVAC, electrical, roof and extensive interior and exterior renovations,” Kevin Duffy, SVP of CBRE, tells GlobeSt.com. “With the current occupancy at 89%, including recently added tenants such as Giant Magellan Telescope Organization and Sierra Lobo, it was time to capitalize on the current investment market in Pasadena.” Duffy represented the seller in the transaction, along with CBRE's Natalie Bazarevitsch and NGKF's Kevin Shannon and Sean Fulp.
The Pasadena office market has seen some challenges lately, with major consolidations and some tenants migrating out of the market, which has caused rents to waver, although according to CBRE, rents in the market are expected to climb nearly 20% in the next two years. However, despite these challenges, the market is still attracting investors. On this transaction, brokers gave 20 site tours and had interest from national investors, insurance companies and local private capital. The sales team had multiple offers on the asset. “Although Pasadena has experienced the recent consolidation of Bank of America and Russ Reid Corporation, it has also seen significant growth in the technology sectors including iRobot, Supplyframe and GMTO as well as ADP and Alibaba, plus co-working space demand from companies like WeWork,” adds Duffy.
It may be that Pasadena is in the middle of a transition in office users. Duffy says that while some industries are leaving, others are arriving or growing in the market. “The Pasadena office market fundamentals still remain strong with anticipation of continued growth in the healthcare, engineering, technology and governmental sectors,” he adds. “The current market vacancy of 13.1% plus the amount of capital being spent on renovations by many of the central business district institutional investors such as of lobbies, conference rooms, plazas and fitness centers will continue to help push rents.”
Located at 465 North Halstead Street, the property sits on 9.6 acres and is 89% leased. The tenant mix includes Community Bank as well as companies such as OE Waves, PNC Bank and Giant Magellan Telescope Organization.
LOS ANGELES—EverWest Real Estate Partners has acquired a two-story 239,000-square-foot office building in Pasadena from DivcoWest. The purchase price was not disclosed, however, sources unrelated to the deal tell GlobeSt.com that the property traded hands for $67 million. DivcoWest recently completed a nearly $6 million renovation on the property, adding creative floor plans that can accommodate both large and medium tenants.
“The sellers purchased the property in 2013 with a 42% occupancy as a value-add opportunity and completed a $5.68 million renovation which included building HVAC, electrical, roof and extensive interior and exterior renovations,” Kevin Duffy, SVP of CBRE, tells GlobeSt.com. “With the current occupancy at 89%, including recently added tenants such as Giant Magellan Telescope Organization and Sierra Lobo, it was time to capitalize on the current investment market in Pasadena.” Duffy represented the seller in the transaction, along with CBRE's Natalie Bazarevitsch and NGKF's Kevin Shannon and Sean Fulp.
The Pasadena office market has seen some challenges lately, with major consolidations and some tenants migrating out of the market, which has caused rents to waver, although according to CBRE, rents in the market are expected to climb nearly 20% in the next two years. However, despite these challenges, the market is still attracting investors. On this transaction, brokers gave 20 site tours and had interest from national investors, insurance companies and local private capital. The sales team had multiple offers on the asset. “Although Pasadena has experienced the recent consolidation of
It may be that Pasadena is in the middle of a transition in office users. Duffy says that while some industries are leaving, others are arriving or growing in the market. “The Pasadena office market fundamentals still remain strong with anticipation of continued growth in the healthcare, engineering, technology and governmental sectors,” he adds. “The current market vacancy of 13.1% plus the amount of capital being spent on renovations by many of the central business district institutional investors such as of lobbies, conference rooms, plazas and fitness centers will continue to help push rents.”
Located at 465 North Halstead Street, the property sits on 9.6 acres and is 89% leased. The tenant mix includes
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