Key Takeaways
- • Lincoln Property Co.'s West Coast arm (LPC West) and Angelo Gordon jointly acquired a 240,904 square-foot office campus in Pasadena for $72.5 million, representing a $25 million discount from the seller's 2019 acquisition price.
- • The property at 465 N. Halstead Street will serve as headquarters for Xencor Inc., a biopharmaceutical company specializing in cancer and autoimmune disease treatments, which will occupy 148,000 square feet and relocate from Monrovia.
- • The transaction reflects broader market repositioning in Southern California office real estate, with the campus transitioning from general office use to a specialized life sciences hub following a 2015 renovation and upcoming capital improvements.
- • Rob Kane, LPC West's executive vice president, emphasized Pasadena's competitive advantages as a research and development hub, citing the submarket's concentration of medicine and technology tenants as a key investment driver.
- • The deal underscores institutional investor appetite for repurposed office assets in secondary markets with specialized tenant bases, despite widespread office sector distress across the region.
Summary
Lincoln Property Co.'s West Coast division and New York-based alternative asset manager Angelo Gordon have jointly purchased a Pasadena office campus for $72.5 million, marking a significant transaction in a distressed Southern California commercial real estate market. The acquisition of the 240,904 square-foot property on 9.6 acres at 465 N. Halstead Street represents a $25 million loss for the seller relative to its 2019 purchase price, reflecting the broader challenges facing office-sector owners in the post-pandemic environment.
The property's strategic value centers on its anchor tenant and market positioning. Xencor Inc., a biopharmaceutical company focused on cancer and autoimmune disease treatments, will occupy approximately 148,000 square feet and relocate its headquarters and laboratory facilities from Monrovia. The campus, which underwent renovation in 2015, is transitioning into a specialized life sciences center tailored to accommodate large floorplates and customized laboratory configurations. Xencor President and CEO Bassil Dahiyat stated the company is returning to Pasadena, where it was originally founded, noting that the "fully customized workspace will provide our scientists with ample room."
LPC West's investment thesis reflects sector-wide recognition that Pasadena offers differentiated fundamentals compared to broader Los Angeles office markets. Rob Kane, executive vice president of LPC West, cited the submarket's established base of research and development, medical, and technology tenants as a compelling investment opportunity. The property's 9.6-acre footprint and architectural specifications suit life sciences operations, which require larger tenant spaces and specialized infrastructure unavailable in traditional downtown office towers.
The transaction illustrates a bifurcated office market where selective properties with specialized use cases and quality tenant anchors continue to attract institutional capital, even as aging general-purpose towers trade at steep discounts. The joint venture structure between LPC West and Angelo Gordon—combining operational real estate expertise with alternative asset management capabilities—positions the ownership for value creation through tenant-focused renovations and market repositioning rather than yield-dependent hold strategies.
The property's strategic value centers on its anchor tenant and market positioning. Xencor Inc., a biopharmaceutical company focused on cancer and autoimmune disease treatments, will occupy approximately 148,000 square feet and relocate its headquarters and laboratory facilities from Monrovia. The campus, which underwent renovation in 2015, is transitioning into a specialized life sciences center tailored to accommodate large floorplates and customized laboratory configurations. Xencor President and CEO Bassil Dahiyat stated the company is returning to Pasadena, where it was originally founded, noting that the "fully customized workspace will provide our scientists with ample room."
LPC West's investment thesis reflects sector-wide recognition that Pasadena offers differentiated fundamentals compared to broader Los Angeles office markets. Rob Kane, executive vice president of LPC West, cited the submarket's established base of research and development, medical, and technology tenants as a compelling investment opportunity. The property's 9.6-acre footprint and architectural specifications suit life sciences operations, which require larger tenant spaces and specialized infrastructure unavailable in traditional downtown office towers.
The transaction illustrates a bifurcated office market where selective properties with specialized use cases and quality tenant anchors continue to attract institutional capital, even as aging general-purpose towers trade at steep discounts. The joint venture structure between LPC West and Angelo Gordon—combining operational real estate expertise with alternative asset management capabilities—positions the ownership for value creation through tenant-focused renovations and market repositioning rather than yield-dependent hold strategies.
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