An office property in East Pasadena has changed hands for future conversion to affordable housing. NAI Capital Commercial’s Investment Services Group in Pasadena, led by EVPs John S. Archibald and Guillermo Olaiz along with senior associate Stephen Lam, represented the seller, Star Horizon, LLC, in the disposition of ZK Plaza. The 41,586-square-foot office building sold for $13,400,000, which NAI Capital Commercial reports is a 3.5% premium over the asking price.
ZK Plaza is located at 600 N. Rosemead Blvd. in East Pasadena, on a 2.12-acre site directly across from General Motors’ advanced design center. The two-story building was originally constructed in 1966, later expanded in 1989 and renovated again in 2011. The property is positioned near major employers and transportation options within the East Pasadena area, factors that the brokerage team highlighted as supporting the asset’s long-term potential.
The buyer, Elysian Housing, LLC, intends to reposition the site from pure office use into an affordable residential community. According to the announced redevelopment plan, the existing office structure will be adaptively reused to accommodate 51 residential units. In addition, Elysian Housing, LLC, plans to construct a new five-story building on the site, adding another 82 units. In total, the project is slated to deliver 133 affordable housing units once the redevelopment is complete.
The planned approach combines reuse of the existing office building with new ground-up construction on the balance of the site. While specific timelines, cost figures, and financing terms were not disclosed, the transaction underscores investor interest in well-located office assets that can be repositioned to meet housing demand. Commenting on the sale, Archibald said that the deal illustrates the opportunities available in established Southern California markets and emphasized that ZK Plaza’s East Pasadena location, near employment centers and transportation infrastructure, provides a strong foundation for its next phase as housing.
