Graymark Capital Acquires 218,983 SF Office / R&D Campus in Pasadena, CA
San Francisco, CA, August 2019 – Graymark Capital, Inc., in partnership with Eightfold Real Estate Capital, has acquired a 218,983 sf creative office / R&D campus in Pasadena, California for $30 million.
Eaton Canyon Tech Center consists of two buildings nestled along the San Gabriel Mountains in the thriving Northeast Pasadena submarket. The two-story institutional quality buildings feature extensive glass line, high ceilings, large floor plates and mature landscaping. The asset is well-located to the Metro with freeway access to Downtown Los Angeles and the San Gabriel Valley. The project is currently 58% leased to a roster of regional and national tenants including Cogent Communications and Fidelity National Information Services.
The project was purchased under Graymark Capital’s reposition strategy, which focuses on well-located, infill assets that can be enhanced through modern renovation and professional management. Graymark plans to complete a cosmetic upgrade of the property with modernized exterior, improved outdoor amenity space and creative interiors.
Pasadena is a research and technology cluster driven by nearby CalTech University and Jet Propulsion Labs. That talent base is supported by a high-quality labor pool commuting from the San Gabriel Valley. The Northeast Pasadena submarket in particular has experienced strong absorption capitalizing on its Pasadena address, commuter train access, retail amenities and new residential construction. Major tenants in the submarket include Cruise Automation, Thales Corporation and Giant Magellan Telescope.
“This is our second purchase is in the Pasadena market.” said Rick Lafranchi, Graymark Capital’s Senior Vice President. “We plan to complete a modern renovation of the common areas and amenities with improvements to the exterior to make the properties more cohesive and to create a better sense of place in the business park.”
COO and CFO Jeff Hoppen added. “We were able to purchase an institutional quality property at an extremely attractive basis in a major research and technology cluster on the West Coast. We are attracted by the strong demographics and opportunity to enhance value through renovation and leasing.”
The HFF investment advisory team representing the seller was led by managing director Andrew Harper and associate Matt McRoskey
About Graymark Capital
Graymark Capital, Inc. is a real estate investment firm headquartered in San Francisco, California that invests in commercial properties throughout the West Coast. The company has acquired 2,300,000 square feet of institutional quality property valued at over $750 million since 2012. Founded by CEO Brian Hecktman, with COO/CFO Jeff Hoppen and SVP of Acquisitions Rick Lafranchi, the company focuses on opportunities where it can create significant value by active asset management and repositioning. Graymark invests in assets with a modern design that appeal to today’s tenants that are located in infill markets on the West Coast with a highly-educated workforce, strong employment growth and attractive quality of life.
About Eightfold Real Estate Capital
Based in Miami Beach, Florida, Eightfold Real Estate Capital® manages real-estate-related assets on behalf of high net worth and institutional investors through eight discretionary closed-end funds. Eightfold partners with real estate firms with a particular expertise and track record investing in a specific property type in a geographic region. These operating partners co-invest and work with Eightfold to jointly develop a unique business plan that will create value in the asset.