$10M Takes Tri-Cities Office Projects

PASADENA, CA-Buyers have acquired two office properties here and in Burbank for a total of $10 million, a sign of continued investment in the improving Tri-Cities market, according to brokers from Grubb & Ellis and GVA Daum.

In the Pasadena purchase, Kevin Shannon of the Torrance office of Grubb & Ellis reports that 675 Arroyo Associates, a Los Angeles-based private investment group, purchased Pacifica Capital Group’s 50% interest in Parkway Plaza, a 31,112-sf medical office building in Pasadena, for $5.8 million. Shannon, Scott Schumacher and Michael Moore of Grubb & Ellis’ South Bay office and Brendan Monaghan of the firm’s Downtown Los Angeles office represented the buyer and the seller. The four-story, steel frame building at 675 Arroyo Parkway was built in 1986 and was 83% leased at the time of sale by Pacifica Capital Group of Los Angeles.

In the Burbank transaction, Los Angeles investors paid in excess of $4 million to acquire a fully leased 31,000-sf building, along with an adjacent parcel of land for additional parking. Larry Iles and Ken Kneale of the Downtown L.A. office of GVA Daum represented buyer Three D Properties LLC, which acquired the three-story office building at 1405 San Fernando Blvd. and the 7,020-sf parking lot at 1400 Broadway from C&P Properties LLC. The seller was represented by Charles Cusumano Real Estate of Burbank. The building is occupied by the State of California and Gateway Title Co.The Tri-Cities deals typify what Grubb & Ellis describes in its most recent office market as a “high-demand investment” climate in the area because of the still-plentiful capital for such deals. In addition, G&E describes the Tri-Cities as a “well-positioned submarket” that continues to show signs of improvement, with a 12% vacancy and improving absorption. Although the once red-hot Tri-Cities “has not yet caught up to the brisk performance of the recent past,” Grubb & Ellis says, it is well positioned to regain its strong hold.