Hanley Investment Arranges Sale of Rare Fee-Simple Ground Lease in Pasadena
- Mar 01, 2017
Pasadena, Calif.—Hanley Investment Group Real Estate Advisors has completed the sale of a rare fee-simple ground lease underlying The Shops on Lake Avenue retail and parking in Pasadena, Calif.
Hanley Investment Group Executive Vice President Carlos Lopez and Senior Associate Lee Csenar represented the seller, Macy’s Inc., who shadow-anchors the property. The buyer, a private investor in San Diego, represented themselves.
The property, located at 345 & 401 South Lake Ave., comprises 5.32 acres with a total of 131,153 square feet of building space. The fee-simple ground lease includes TJ Maxx, Trader Joe’s, Jos. A Bank, Orvis, Sola Salon, Paul Martin’s, Breakthru Fitness, Corner Bakery, Gymboree, AT&T, Nekter Juice Bar, Pieology Pizzeria, Tokyo Shabu Shabu, Coffee Bean & Tea Leaf, Yogurtland and Massage Envy.
Over 61 years remained on the lease term, which includes two 10-year options and increases every five years. 100 percent of the improvements reverts to the landowner upon expiration of the ground lease.
“This offering represented a once in a lifetime opportunity for an investor to purchase over 5 acres of land along South Lake Avenue in the heart of Pasadena’s premier shopping district. A long-term, triple-net ground lease is one of the most secure forms of real estate investment and the investment community responded accordingly,” said Lopez, in prepared remarks. “Using Hanley Investment Group’s proprietary database, we targeted the private investor community and were able to procure 20 qualified offers and close within 30 days, achieving the seller’s goal of closing by its fiscal year-end.”
Image courtesy of Hanley Investment Group