As part of its expansion plan, East West Bank has acquired a prominent downtown Pasadena building from the Irvine Co. for $98 million, 32% below what the latter paid more than a decade ago.
The Class A property, called Western Asset Plaza, covers around 270,000 square feet at 385 E. Colorado Blvd. and is right next to East West Bank’s current headquarters.
Built in 2003, the building was redeveloped from an old Woolworth’s store and sold for $362 per square foot.
Irvine Co. bought the building in 2012 for $144 million, according to CoStar records.
East West Bank officials told the Business Journal that this purchase helps them prepare for future growth.
“The purchase provides flexibility for future expansion as the bank continues to grow and reflects our long-term commitment to Pasadena,” a spokesperson said in a statement to the Business Journal.
Irvine Company’s Office Market
Irvine Co. is one of California’s biggest office property owners, with nearly 590 buildings across the state totaling 54 million square feet and a lease rate of 90%.
This sale happened about four months after the company sold San Diego’s tallest office tower, One America Plaza, for $120 million. The company had bought it for nearly $300 million in 2006.
That sale was part of a larger retreat from downtown San Diego, where vacancy rates have risen to about 36%, according to the Kidder Mathews Q4 office report. Across the county, the office vacancy rate was 14%. Irvine Co. is investing more in northern San Diego around La Jolla area.
This was Irvine Co.’s only office property in Pasadena. The company is focusing on reinvesting in its core market and growth areas.
According to Kidder Mathews, Pasadena’s office vacancy rate is about 15%, which is much better than the Los Angeles market average of 17.5%.
Western Asset Plaza is 97% leased.
The building hosts a variety of tenants, such as investment manager Western Asset, Ruth’s Chris Steak House, and several law firms.
