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The Real Deal Los Angeles

Here are LA County’s top 5 office investment sales of May

Pasadena accounted for 3 sales, including the largest of the month
By Dennis Lynch and Laura Hanranhan | June 19, 2018 10:00AM

Corporate Center Pasadena

A pair of nine-digit office complex trades topped the list of office investment deals last month.

The top five sales of May totaled over $486 million and saw more than 1.4 million square feet of office space change hands. Three of the five, including the top trade, took place in Pasadena.

Numbers were compiled from property records by Real Capital Analytics and PropertyShark.

1. Corporate Center Pasadena — Coretrust Capital | $260M

Coretrust Capital paid around $397 per square foot for this four-building campus at 251 S. Lake Avenue via its investment fund Coretrust Value Fund I. The seller was UBS Realty. The Downtown firm is planning a $90 million renovation of the property to turn it “into a collaborative environment” with more public spaces. Along with 600,000 square feet of office space, the complex has 40,000 square feet of retail, a 60,000-square-foot plaza, and parking for 2,000 vehicles.

2. AirFlyte — Swift Real Estate Partners | $167.5M

Swift Real Estate Partners entered the El Segundo office market with the acquisition of the three-building AirFlyte complex from the California Public Employees’ Retirement System, or CalPERS. CalPERS paid around $112.5 million — nearly $100 less per square foot — for the AirFlyte complex in July 2013. The 550,000-square-foot complex is fully leased to Raytheon, AT&T, and DirecTV. ACORE Capital provided a $150 million loan to San Francisco-based Swift, some of which will go toward a renovation.

3. Six25 Fair Oaks — Greenbridge Investment Group | $30.7M

Greenbridge picked up this three-story, 93,000-square-foot office from Gentom Cockrum Partners, which paid $20 million for it in 2014. Gentom Cockrum listed the 30-year-old property in November when it was 70 percent leased. Beverly Hills-based Greenbridge is looking to get out of another Pasadena property — the Pasadena Star News Building on Colorado Street. It’s listed for around $50 million.

4. Cahuenga Plaza — Harbor Associates and Bascom Group | $21.7M

Harbor and Bascom is planning to spend around half a billion dollars on office properties in the Western U.S. over the next two years and they started that spree with this acquisition in Toluca Lake. The joint venture has plans to renovate the 75,000-square-foot building at 4130 Cahuenga Boulevard and reposition it as a creative office space. Seller M West Holdings purchased the site in 2011 for $15.2 million from a family trust.

5. Franklin Court — Synergy Alliance LLC | $12.4M

Synergy Alliance snagged a $7.5 million mortgage with Luther Burbank Savings for this Pasadena pickup from Downtown-based Peregrine Realty Partners. Peregrine paid $7.1 million for the 42,600-square-foot office building in 2014 from a family trust. Tenants include a gym and a physical therapy office.