The Pottery Barn building at the corner of Colorado Boulevard and Fair Oaks Avenue in Old Pasadena has sold for $16.1 million.
A private investor purchased the building from Federal Realty Investment Trust, which was represented by Carlos Lopez and Lee Csenar from Hanley Investment Group Real Estate Advisors.
The buyer was represented by Newmark Knight Frank’s Rob Ippolito, Glenn Rudy and Pete Bethea.
“This is a generational acquisition for an iconic property located at the premier intersection in Pasadena to a Southern California-based investor,” Lopez said in a statement.
The five-story property has roughly 31,000 square feet of retail space. It was built in 1905 and renovated in 1997, according to Hanley Investment Group.
The basement and two levels of the building are leased to Pottery Barn, which has been in the location for more than 20 years. There are also two floors of residential units and one floor of office space.
Csenar said the buyer was able to secure financing and close the deal despite Covid-19.
“Deals are still getting done,” Lopez said in a statement. “This is a testament to high-quality real estate still transacting even in these uncertain times.”
One of the biggest retail deals so far this year was Mid-Wilshire-based CIM Group’s purchase of the 869,000-square-foot Baldwin Hills Crenshaw Plaza. Terms of the sale were not disclosed, but industry insiders said it likely sold for more than $100 million.
Brick-and-mortar retail had been struggling even before the pandemic hit. As more shoppers turned online, big-box anchors shuttered storefronts, increasing vacancies in some malls.
Commercial real estate recovery in the United States is expected to take 12 to 36 months, according to CBRE Group Inc. Retail is expected to take a full 36 months.
Many retailers are seeking rental relief, the group found.
In April, rent often came in late, according to CBRE. Rates ranged from 10% to 20% for malls, compared with 55% to 80% for grocery- anchored shopping centers.