Urban Retail Repositioning Opportunity for Sale in Pasadena

Monday, August 8, 2016

Update:  This property is no longer available.  Please click here for HFF's current commercial real estate investment offerings.

HFF, on behalf of the owner, is marketing for sale 114-140 West Union Street, an urban retail redevelopment opportunity located in the heart of Pasadena, California, near Los Angeles. The 33,841-square-foot building is fully occupied by IdeaLab, a renowned and highly-successful technology incubator concept responsible for producing more than 150 companies with 40 successful IPO’s and acquisitions.

The commercial property for sale consists of five internally-connected, single-story buildings constructed in the 1920s with several renovations completed in 1998, 2000 and 2003. Parking is provided at an off-site parking facility directly across West Union Street, which is managed by and leased from a separate company.

The property is located just east of Interstate 710 and a few blocks south of Highway 134 in Old Pasadena’s urban retail corridor near Colorado Street in the heart of the central business district. With sizable recent investments by institutional capital and rapidly increasing demand for space by high end tenants, the Old Pasadena/Colorado retail corridor has emerged as a core urban retail market and is fast becoming one of LA’s most promising high street retail opportunities. Pasadena is one of the most affluent and established cities in Los Angeles County. With an average household income of $112,640, Pasadena far exceeds the Los Angeles County average of $54,510, the California average of $61,632 and the national average of $51,939. Pasadena has experienced a housing densification, especially near the downtown area, with an influx of condominium developments and townhomes within the past 15 years. Pasadena has become a true live-work-play environment.

The property for sale is located directly adjacent to the planned mixed-use redevelopment of the former Parson’s corporate headquarters. The new development will feature 620,000 square feet of Class A office space, 40,000 square feet of retail and restaurants and 475 luxury residential units. This project will continue to provide 3,700 parking spaces with public access across the street via Union Street. Due to the increasing demand from high-end retailers and limited supply of suitable space in this highly-desirable location, converting 114-140 W. Union Street to retail space at the expiration of IdeaLab’s lease will allow a new investor to create significant value through higher rental rates.

Property Investment Highlights

  • Irreplaceable Redevelopment Opportunity with Current Income: 114-140 W. Union Street represents an irreplaceable urban retail redevelopment opportunity with stable in-place cash flow today from a premier creative office tenant. This rare combination offers a potential investor value add returns with limited downside risk in a core urban location.
  • Superior Walkability and Foot Traffic: Located in the heart of vibrant Old Pasadena, 114-140 W. Union Street enjoys exposure to significant foot traffic and ranks as a “Walker’s Paradise” with a 95 walkability index score. Only 10 minutes from the Metro Gold Line, much of the success and rapid maturation of the Colorado retail corridor can be attributed to the superior walkability of this amenity-rich live-work-play district.
  • Exceptional Demographics with Increasing Urban Density: Pasadena is one of the most affluent LA communities and is seeing a rapid increase in density
     since demand for residential and commercial space is at a record high. Within a one mile radius of the property, more than 500 luxury multifamily units have been delivered and more than 675 units are under construction. More than 465 residential unit permits have been issued by the city since January 2015, representing an estimated $125 million in value. Additionally, the Old Pasadena district features more than 100 world-class dining options, 200 specialty boutique and retailers, a farmers market and vibrant nightlife. The desirability of this location for retail is evidenced by the number of high-profile retailers, including Pottery Barn, Tiffany & Co., Forever XXI, Banana Republic, Urban Outfitters and Apple, that have opened locations in the neighborhood.
  • Highly-Desirable In-Place Tenant: Founded in 1996, IdeaLab is the longest running technology incubator in the country. Over the past 20 years, it has created more than 150 companies with 40 successful IPOs and acquisitions. In addition, IdeaLab has closed more than 300 rounds of financing totaling more than $3.5 billion.

114-140 West Union Street is a unique urban retail repositioning opportunity for sale near Los Angeles in the heart of Pasadena. For more information on this commercial property for sale, contact Gleb Lvovich in HFF’s Orange County office or Bryan Ley in HFF’s Los Angeles office.

Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

By Topics