PASADENA, Calif. – (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced today the firm completed the sale of a rare fee-simple ground lease underlying The Shops on Lake Avenue retail and parking on South Lake Avenue in Pasadena, Calif. The property is shadow-anchored by Macy’s. The terms of the sale could not be disclosed.
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Hanley Investment Group Executive Vice President Carlos Lopez, along with Senior Associate Lee Csenar, represented the seller, Macy’s Inc. The buyer, a private investor in San Diego, Calif., represented themselves.
The fee-simple ground lease lies under The Shops on Lake Avenue, which is anchored by Macy’s (not included in the transaction), includes T.J.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. Tenants on South Lake Avenue, such as Williams-Sonoma, Talbots, Pacific Sales, Corner Bakery and Ross Dress for Less, rank among the highest sales volumes for their respective chains.
“This offering represented a once in a lifetime opportunity for an investor to purchase over five acres of land along South Lake Avenue in the heart of Pasadena’s premier shopping district,” said Lopez. “A long-term, triple-net ground lease is one of the most secure forms of real estate investment, and the investment community responded accordingly.”
According to Lopez, “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.”
The property consists of two parcels totaling 5.32 acres with a total of 131,153 square feet of building at 345 & 401 South Lake Avenue. 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.
Lopez notes that Macy’s has no plans to close the store or sell the Macy’s department store.
The South Lake Avenue corridor consists of 12 blocks of shopping and dining that include over 600 businesses in addition to two million square feet of Class A office. The Shops on Lake Avenue is the main retail project within the district and draws from the region, including nearby cities of Arcadia, Eagle Rock, La Cańada Flintridge and San Marino. The average household income is $102,500 with 37 percent of households averaging $100,000 or more within a three-mile radius.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.
MONAGHAN COMMUNICATIONS, INC.
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