Pasadena office properties have lately proved popular investments.
Late last month, Dallas telecommunications company AT&T Inc. sold its building at 177 E. Colorado Blvd. in Pasadena to Saunders Property Group, a small firm out of Newport Beach. The 11-story building sold for about $82 million, according to industry sources, or about $281 a square foot.
The sale, which closed Feb. 28, came just a month after a Class A building around the corner traded hands. In January, the eight-story office property at 245 S. Los Robles Ave. sold to Kennedy-Wilson Holdings Inc. of Beverly Hills for $39 million, or about $226 a square foot, according to CoStar Group Inc.
The AT&T building, a reinforced concrete structure, was commissioned in the early ’70s by Pacific Bell Telephone Co., now a subsidiary of AT&T. The company occupied the property in its entirety for several decades, but in recent years significantly downsized its footprint. At the time of sale, the 292,000-square-foot building was only about 52 percent occupied.
Todd Doney, a vice chairman for CBRE Group Inc., represented the seller in the deal, along with Kevin Shannon, Todd Tydlaska and Randy Brown, also of CBRE.
Doney, who will handle leasing for the property going forward, said AT&T will continue to occupy roughly 43 percent of the building, or about 125,000 square feet. Meanwhile, the buyer has budgeted up to $12 million for capital improvements to the property.
“They’re going to do work that includes remodeling the main lobby, the entrance area, the elevator cabs, the restrooms and exterior landscaping,” he said.
Long Beach Living
Shoreline Gateway, a high-rise residential development planned for downtown Long Beach, was expected to begin the first of two phases of construction this week.
Westchester developer Anderson Pacific, with equity partner Ledcor Properties Inc., will demolish a 33-unit apartment building at 707 E. Broadway to make way for a $70 million, 17-story apartment tower with 223 luxury units. A 35-story companion condominium tower is expected to commence construction in about two years, once the smaller tower is complete.
Jim Anderson, chief executive at Anderson, said his firm purchased the property in 2004 and has been working on the project for the last decade.
“Ten years later, we have survived some pretty extraordinary circumstances and we are thrilled to be moving forward,” he said in a statement.
The developer gained entitlements for the redevelopment project in 2007, before the economic crisis hit. After waiting out the recession, the project got stalled again when Gov. Jerry Brown eliminated the state’s redevelopment program. The project got back on track a year ago.
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