an urban retail redevelopment opportunity located in pasadena, ca

A N U R B A N R E TA I L R E D E V E LO P M E N T O P P O RT U N I T Y LO C AT E D I N PA S A D E N A , C A
EXECUTIVE SUMMARY
HFF, as the exclusive advisor, in conjunction with Hurst/Harrigan Associates,
is pleased to offer for sale 114-140 W. Union Street (The Property), a unique
urban retail repositioning opportunity located in the heart of Pasadena, CA.
Currently positioned as creative office space, the building is occupied by
IdeaLab – a renowned and highly-successful technology incubator concept
that is responsible for producing over 150 companies with 40 successful IPO’s
and acquisitions. Strategically positioned within Old Pasadena’s urban retail
corridor near Colorado Street and in the heart of the central business district, the
Property is located directly adjacent to the planned mixed-use redevelopment of
the former Parson’s corporate headquarters. 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.
INVESTMENT OVERVIEW
PROPERTY SUMMARY
LOCATION
114-140 W. Union Street, Pasadena, CA 91103
GROSS LEASABLE AREA
33,841 SF
SITE SIZE
0.79 Acres
IN-PLACE NOI
$1,040,000
PRO-FORMA NOI
$2,365,000
OCCUPANCY
100%
YEAR BUILT / RENOVATED
1920 / 1998, 2000, 2003
OFFER PRICE
Best Offer
2 |
ONE COLORADO
PASEO COLORADO MALL
UNION VILLAGE
118 Units
OLD PASADENA
STREET RETAIL
ORANGE
EQUITY
TERRACES AT PASEO COLORADO
400 Loft-Style Apartments
6K
±58
(
25 W. WALNUT
)
CPD
MEMORIAL PARK
LIGHT RAIL STATION
(Under Construction)
201 Units - 10,000 SF of
ground floor retail
100 WEST WALNUT
DEVELOPMENT
1.2M SF Redevelopment
RESIDENCES AT
WESTGATE APARTMENTS
340 Units
155 W GREEN STREET
APARTMENTS
70 Units
UNION STREET
K
0
±4
CO
LO
DO
RA
(
D.
V
BL
D)
P
C
S. FA
IR OA
KS A
VE . (
±53K
DELACEY AT GREEN
APARTMENTS
150 Units
(±1
10K
CP
D)
3 |
WESTGATE APARTMENTS
480 Units
CPD)
ONE COLORADO
INVESTMENT HIGHLIGHTS
IRREPLACEABLE REDEVELOPMENT
OPPORTUNITY WITH CURRENT INCOME
OLD PASADENA – EMERGING URBAN
RETAIL MARKET
TRANSFORMATIVE MIXED-USE
PROJECT NEXT DOOR
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.
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.
Lincoln Property Company is currently redeveloping
the former Parson’s office campus directly across
Union Street from the Property. The new mixed-use
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.
4 |
95
WALK SCORE
“A Walker’s
Paradise”
walkscore.com
Photo is for representation purposes only.
SUPERIOR WALKABILITY AND
FOOT TRAFFIC
EXCEPTIONAL DEMOGRAPHICS WITH
INCREASING URBAN DENSITY
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.
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, 500+ luxury
multifamily units have been delivered and 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.
5 |
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 over 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.
NAP
W. COLORADO BOULE VARD
SITE PLAN
W. UNION STREE T
V
NAP
NAP
W. COLORADO BOULE VARD
NAP
THE PROPERTY PRESENTS THE UNIQUE OPPORTUNITY FOR AN INVESTOR TO ACHIEVE OUTSIZED RETURNS
THROUGH REPOSITIONING THE BUILDING AS RETAIL SPACE, WHILE EARNING A STABLE IN-PLACE YIELD THAT
SIGNIFICANTLY LIMITS DOWNSIDE POTENTIAL.
V
Please contact Pat Hurst, a
local leasing expert, to discuss
the leasing market as well as
the tenant interest for
114-140 W. Union Street
PAT HURST
Large blocks of space are RARELY
AVAILABLE in Pasadena,
especially Old Pasadena
Functional single level building
allows for ideal retail conversion
WITH MINIMAL COSTS
6 |
SIGNIFICANT TENANT INTEREST
exists from both multiple and single
users for space at the Property
Hurst/Harrigan Associates
310.375.1821
[email protected]
CA Lic. # 01032917
(±1
10K
1,850
SPACES
1,850
SPACES
CP
D)
100 WEST WALNUT DEVELOPMENT
1.2M SF Redevelopment
.
AVE
AKS
IR O
S. FA
(±586K CPD)
7 |
INVESTMENT SALES ADVISORS
GLEB LVOVICH
949.798.4115
[email protected]
CA Lic. #01496699
BRYAN LEY
310.407.2120
[email protected]
CA Lic. #01458927
REAL ESTATE ANALYST
DEBT GUIDANCE
JUSTIN KUNDRAK
JOHN CHUN
310.407.2415
[email protected]
CA Lic. #01994398
949.798.4108
[email protected]
CA Lic. #01904323
LOCAL LEASING EXPERT
PAT HURST
Hurst/Harrigan Associates
310.375.1821
[email protected]
CA Lic. # 01032917
WEST COAST INVESTMENT SALES TEAM
GLEB LVOVICH
CJ OSBRINK
BRYAN LEY
DANNY REDDIN
949.798.4115
[email protected]
CA Lic. #01385740
602.387.5239
[email protected]
CA Lic. #01900338
310.407.2120
[email protected]
CA Lic. #01458927
415.276.6089
[email protected]
CA Lic. #01946495
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Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a California licensed real estate broker California License Number 01385740 (“HFF”). HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from
sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and
any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees
and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
©2016 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated
national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
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