State Compensation Insurance Fund has acquired a 158,785-square-foot Class A office building at 35 N. Lake Ave. in Pasadena, according to CBRE. Los Angeles Business First reported the transaction price at $33 million for the nine-story property. The buyer is a public enterprise, not-for-profit insurance carrier that was established in 1914 to provide fairly priced workers’ compensation insurance coverage to any California business that needs it.
State Fund intends to use a portion of the building as a regional hub to support its Southern California operations. The remaining floors will be made available for lease to third-party office tenants, creating a mix of owner-occupied and multi-tenant space within the asset. The property’s size and Class A designation position it to accommodate a range of workspace requirements as the organization establishes its regional presence.
As part of the acquisition strategy, State Fund plans to renovate the building to enhance its functionality and competitiveness in the local office market. The improvement program will include the addition of new amenities, such as a fitness center and meeting space that will be available to tenants. These upgrades are intended to increase the building’s appeal to both the buyer’s internal users and prospective external occupants.
On the capital markets side, CBRE represented State Fund in the purchase. The brokerage team consisted of Brad Chelf, Ron Wade and Taylor Watson, who advised the not-for-profit insurance carrier on the acquisition. JLL represented the seller, Swift Real Estate Partners, which has been involved with the asset and will continue to manage the property following the sale. The continuity of management is expected to provide operational consistency during and after the transition in ownership.
Commenting on the transaction, Chelf noted that the building’s location and existing infrastructure support both owner-occupancy and ongoing leasing activity. The combination of an institutional buyer, a sizable Class A office asset and a planned amenity refresh underscores continued engagement by users that seek to align long-term occupancy needs with direct ownership of quality office product.
