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| Walgreens, 310 South Lake Avenue, Pasadena, CA |
PASADENA,
CA - Hanley Investment Group Real Estate Advisors, a nationally-recognized real
estate brokerage and advisory firm specializing in retail property sales,
announced the sale of the landmark building occupied by Walgreens at 310 South
Lake Avenue in Pasadena, California.
The sale price for the fee-simple property
was $23 million, representing a cap rate of 4.9 percent.
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| Carlos Lopez |
Hanley Investment Group Executive Vice President Carlos Lopez and Vice
President Lee Csenar represented the seller, AEGON USA Realty Advisors,
LLC of Cedar Rapids, Iowa.
The
buyer, a private investor based in Beverly Hills, California, was represented
by John D. Repstad of Realty Advisory Group, Inc. of Los
Angeles.
Built in 1949, the iconic freestanding 39,290-square-foot building is located on 0.79 acres at the signalized intersection of South Lake Avenue and Del Mar Boulevard.
Built in 1949, the iconic freestanding 39,290-square-foot building is located on 0.79 acres at the signalized intersection of South Lake Avenue and Del Mar Boulevard.
The
first and second floor of the building (totaling 27,025 square feet) is leased
to Walgreens until 2027. Walgreens subleased the second floor to
Sit 'n Sleep for a 14,057-square-foot store.
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| Lee Csenar |
The
building’s 12,265-square-foot basement space is leased to Premier Dental Care
Group. The sale also included a portion of the parking lot behind the property
and the use of the adjacent reciprocal parking managed by the City of
Pasadena.
“The sale represented an extremely rare opportunity for an investor to purchase 39,290 square feet of prime retail along South Lake Avenue in the heart of Pasadena,” said Lopez.
“The sale represented an extremely rare opportunity for an investor to purchase 39,290 square feet of prime retail along South Lake Avenue in the heart of Pasadena,” said Lopez.
“This
is a secure and stable generational asset with a long-term triple-net lease
with Walgreens representing 85 percent of the annual income. There is an
additional triple-net lease with Premier Dental Care Group, which has been
successfully operating at the property since 2013.”
According to Csenar, “Investors were attracted to the high identity, very desirable South Lake Avenue location and co-tenancy.
According to Csenar, “Investors were attracted to the high identity, very desirable South Lake Avenue location and co-tenancy.
"The property is situated
at the hard corner of South Lake Avenue and Del Mar Street directly across the
street from the Shops on Lake Avenue Mall, anchored by Macy’s,
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| John D. Repstad |
"Trader
Joe’s and T.J.Maxx. Additional retailers along South Lake Avenue are Ann
Taylor, LA Fitness, Pacific Sales, Pavilions, Pet Food Express, Pier 1 Imports,
Pottery Barn Kids, Ross Dress for Less, Talbots and Williams Sonoma.”
The revered South Lake Avenue corridor consists of 12 blocks of shopping and dining that includes over 600 businesses that draw from the region, including nearby cities of Arcadia, Eagle Rock, La Cańada Flintridge, South Pasadena and San Marino.
Within
three miles of the site, the average household income is $117,600 with 38
percent of the households averaging $100,000 or more. More than 560,000 people
live within a five-mile radius of the property.
The
population is also highly educated with 64 percent of the residents with a
bachelor’s degree or higher within one mile and 7.7 million square feet of
Class A office that continues to draw employers to Pasadena, creating office
demand.
According to Lopez, South Lake Avenue has an incredible 94 out of 100 Walk Score, calling it a “Walker’s Paradise” due to the proximity in all ranking categories including dining, groceries, shopping, errands, parks, schools, culture, and entertainment.
According to Lopez, South Lake Avenue has an incredible 94 out of 100 Walk Score, calling it a “Walker’s Paradise” due to the proximity in all ranking categories including dining, groceries, shopping, errands, parks, schools, culture, and entertainment.
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| South Lake Avenue, Downtown Pasadena, CA |
The Metro Gold Line boasts over 50,000 daily
riders per weekday and 34,000 daily riders on the weekends.
Pasadena is home to top employers including Kaiser, Parsons, and Nasa Jet Propulsion Laboratory (JPL). Nearby colleges include Caltech, Pasadena City College, Occidental College, and ArtCenter College of Design.
“This transaction is another great example of the high demand for well-located retail assets, specifically in Pasadena on South Lake Avenue and Colorado Boulevard,” said Csenar.
Lopez has sold more retail on South Lake Avenue than any other agent in the last five years, with a total of 220,000 square feet of retail worth $59 million. According to CoStar Group, there have only been 13 retail transactions along South Lake Avenue in the last five years.
“High-quality urban locations in great cities and the urban core of Southern California in districts such as Pasadena, Hollywood, Downtown Los Angeles and Santa Monica continue to attract investors from the region, as well as from across the nation and the global investment community,” said Lopez.
Pasadena is home to top employers including Kaiser, Parsons, and Nasa Jet Propulsion Laboratory (JPL). Nearby colleges include Caltech, Pasadena City College, Occidental College, and ArtCenter College of Design.
“This transaction is another great example of the high demand for well-located retail assets, specifically in Pasadena on South Lake Avenue and Colorado Boulevard,” said Csenar.
Lopez has sold more retail on South Lake Avenue than any other agent in the last five years, with a total of 220,000 square feet of retail worth $59 million. According to CoStar Group, there have only been 13 retail transactions along South Lake Avenue in the last five years.
“High-quality urban locations in great cities and the urban core of Southern California in districts such as Pasadena, Hollywood, Downtown Los Angeles and Santa Monica continue to attract investors from the region, as well as from across the nation and the global investment community,” said Lopez.
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