LA-Area Landmark Walgreens Building Sells for $23M

By Evelyn Jozsa

Walgreens 

AEGON USA Realty Advisors LLC has traded a 39,290-square-foot retail space in Pasadena, Calif., for $23 million, representing a cap rate of 4.9 percent. Hanley Investment Group Real Estate Advisors represented the seller and Realty Advisory Group Inc. worked on behalf of the buyer, a private investor based in Beverly Hills, Calif.

Located at 310 South Lake Ave., the retail property sits on less than one acre near interstates 210 and 710 and provides access to Freeway 110. Additionally, the building is situated less than 1 mile from the Metro Gold stations at Lake Station and Del Mar Station which connect Pasadena to downtown Los Angeles, the San Fernando Valley, the San Gabriel Valley, Santa Monica/West, the South Bay, downtown Long Beach and East Los Angeles. Approximately 560,000 people within a five-mile radius and within a three-mile radius the average household income is around $117,000.

The property built in 1949 is anchored by Walgreens and is close to other retailers, including The Shops on Lake Avenue and Pet Food Express. South Lake Avenue corridor comprises 12 blocks of shopping and dining options. Walgreens subleased the second floor─totaling 14,057 square feet─to Sit ‘n Sleep and an additional 12,265-square-foot basement space is occupied by Premier Dental Care Group.

“High-quality urban locations in great cities and the urban core of Southern California in districts such as Pasadena, Hollywood, Downtown Los Angeles and Santa Monica continue to attract investors from the region, as well as from across the nation and the global investment community,” said Carlos Lopez, executive vice president of Hanley Investment Group, in prepared remarks.

In August, Hanley Investment Group also arranged the sale of Natomas Shopping Center, a 50,168-square-foot retail center in Sacramento, Calif. 

Image courtesy of Hanley Investment Group