Laurus Corporation has received $48m in loans for the acquisition and repositioning of an office building at 199 South Los Robles in Pasadena, California, Real Estate Capital has learned.
Los Angeles-based Mesa West Capital provided a $39m, five-year, floating-rate loan, and Karlin Real Estate, also based in Los Angeles, provided a $9m mezzanine loan.
Laurus, which purchased the property from Heitman for $52.5m on behalf of its affiliate company Ethika Investments, will renovate the building’s lobby, restrooms, corridors, exterior plaza and signature zigzagging façade.
Built in 1983 and renovated in 2004, the eight-story, 163,000 sq ft office building was 80% leased at close.
Laurus CEO Philip Cyburt noted that there is a lack of available Class A office space in Pasadena but that rents in the city are still “25 to 30 percent below peak levels, allowing for significant increases.”
Ethika, the Laurus affiliate, allocated capital for the purchase through its Diversified Opportunity Real Estate Fund, marking the fund’s 13th investment and its second in the Los Angeles metro area.
“The all-encompassing renovation program will drive rental rates, occupancy and tenant satisfaction,” said Talal Elass, vice president of fund management at Ethika Investments.
Mesa West and Karlin’s reach has extended well beyond their home state. Earlier this month, Mesa West provided Sterling Bay with $220m to refinance 1KFulton, a 10-story, 535,000 sq ft, Google-anchored trophy office building in Chicago, Illinois, and Karlin provided $96m in loans to refinance two Arizona resort properties and another in Colorado.