After recently receiving entitlements for a 107-unit residential building in Pasadena, Adept Development is selling off the 2.6-acre development site. The project was listed by CBRE earlier this year and is currently developed with a 73,846 square foot medical office building.
The project site is located at 960 E. Green Street and was sold to Adept Development in 2015 for $27.75 million, public records show. After four years, the project is now entitled with ready-to-issue building permits, allowing a potential buyer to begin construction immediately.
However, the project site is also home to the Thatcher Medical Center, a 1960s-era buidling reaching three stories. Since acquiring the property, the medical office building has received improvements on 40 spaces totaling nearly 55,000 square feet.
The building is currently 84.5 percent occupied with 41 medical tenants, offering a net operating income of $1.75 million. Additionally, the listing shows that more than two-thirds of current tenants have been at the property for five or more years and no tenant occupies more than five percent of the site.
The medical office building is located in the South Lake Avenue District of Pasadena, which offers more than 700 retailers and restaurants within walking distance. The property is also within walking distance of the Metro Gold Line Lake Station stop and both Interstates 210 and 110.
The location also offers fundamentals that could potentially support the proposed residential project. According to CBRE, the submarket’s current vacancy is at 2.6 percent as absorption in Pasadena is at nearly five times the 10-year average. At the same time, Pasadena’s average asking rents have increased by 8.3 percent in the past year.
