Listing Summary
Prime Investment Opportunity: Pasadena Hospitality & Retail Portfolio
Full Description
Dual-Income Value-Add Property in Pasadena, CA
Signature Hospitality Advisors, in cooperation with RAD Capital Group, exclusively presents the rare acquisition opportunity for the Pasadena Portfolio—a premier dual-income hotel and retail campus situated on the historic Rose Parade route at 3500 E. Colorado Blvd, Pasadena, CA 91107.
Offered unencumbered by management as a Fee Simple Interest, this offering combines a high-performing 93-key select-service hotel with near-pure-passive, multi-tenant retail income. The asset presents an exceptional value-add opportunity driven by a Property Improvement Plan (PIP), brand repositioning, and robust submarket fundamentals.
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Offers Due: August 25, 2026
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Asking Price: $21,980,000 (Combined Portfolio)
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Blended Cap Rate: ~6.5% (T-12 NOI)
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Bifurcation Flexibility: Assets can be purchased together or acquired independently:
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Hotel Asset: $16,800,000 (6.5% Cap Rate)
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Retail Asset: $5,200,000 (6.5% Cap Rate)
Investment At-A-Glance & Key Performance Metrics
Financial & Property Highlights
| Metric |
Current Portfolio Value (T-12) |
Projected Metrics (Year 3 Post-PIP) |
| Total Asking Price |
$21,980,000 |
— |
| Combined T-12 NOI |
$1,325,015 |
$1,561,663 (+18% Growth) |
| Yield on Cost |
~6.00% |
~9.30% |
| Hotel Key Count |
93 Keys |
93 Keys |
| Average Daily Rate (ADR) |
$161 |
Rate growth post-renovation |
| Revenue Per Available Room (RevPAR) |
$125 |
Projected increase via PIP |
| Occupancy |
77.6% |
Market-leading stabilization |
Core Investment Highlights & Competitive Strengths
1. #1 RevPAR Performance in Competitive Set
The Holiday Inn Express & Suites Pasadena ranked #1 in RevPAR within its 7-property STR competitive set for the trailing 12-month period through January 2026. Demonstrating superior operational performance, the property achieved:
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Revenue Generation Index (RGI): 1.292
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Market Penetration Index (MPI): 111.5
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Outperformed all competitors simultaneously across Occupancy, ADR, and RevPAR.
2. Dual-Income Stream: Hotel + Multi-Tenant Retail
This rare portfolio structure delivers resilient cash flow from two complementary income streams:
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Select-Service Hotel: Generated $4,091,174 in T-12 revenue and $1,000,623 in T-12 NOI (24.5% margin) through March 2026.
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Tri-Lin Pasadena Retail: Multi-tenant retail strip co-located on campus, producing $324,392 in T-12 NOI at an extraordinary 99.3% margin, operating as a near-passive, near-NNN investment layer.
3. Global Brand Support — IHG Flag & 100M+ Member Network
Operating under the trusted Holiday Inn Express & Suites banner, the asset benefits directly from IHG’s global distribution network, centralized revenue management systems, and the IHG One Rewards loyalty program (100M+ members worldwide), which consistently drives direct bookings and corporate rate contracts.
4. Irreplaceable Location Along the Rose Parade Route
Positioned at 3500 E. Colorado Blvd, the property occupies a prime piece of Southern California real estate along the world-famous Tournament of Roses Parade route.
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Annual Event Spike: High premium-rate opportunities during the Rose Bowl Game and Rose Parade.
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Year-Round Demand Drivers: Institutional demand from Caltech, NASA’s Jet Propulsion Laboratory (JPL), Huntington Memorial Hospital, and the Pasadena Convention Center.
5. High Barrier-to-Entry Submarket
The Pasadena/Glendale/Burbank submarket features strict zoning laws, high land costs, and complex entitlement processes, effectively capping new competitive hotel supply across its 8,521-room inventory. Submarket occupancy reached 74.6% in year-end 2025, providing strong long-term rate power for existing properties.
Value-Add Repositioning & Growth Strategy
This acquisition represents an upside-driven investment rather than a fully stabilized play. Current operating metrics reflect a property in transition, providing clear levers for proactive investors:
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PIP-Driven NOI Expansion: Executing IHG's required Property Improvement Plan (PIP) allows new ownership to re-rate market positioning, elevate room rates, and raise the ADR ceiling—scaling T-12 NOI from $1.33M to a projected $1.56M by Year 3.
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Owner-Operator Operational Efficiency: Eliminating standard third-party management fee drag through self-management or direct in-house hospitality leadership to improve operating margins.
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Dynamic Revenue Optimization: Implementing modern channel-mix strategies, direct-booking incentives, and aggressive rate management.
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Ancillary Revenue Expansion: Monetizing underutilized meeting spaces, optimizing parking fee structures, and driving group sales.
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Retail Lease-Up & Mark-to-Market: Capitalizing on month-to-month tenancies to renegotiate below-market leases or attract credit-worthy national tenants as lease terms roll over.
Asset Breakdown & Acquisition Flexibility
Note on Property Improvement Plan (PIP): A PIP is anticipated upon transfer of ownership in accordance with IHG brand standard guidelines. Buyers are advised to conduct independent due diligence with IHG and qualified commercial construction contractors regarding PIP scopes, schedules, and costs.
Contact Exclusive Listing Agent
For access to the complete Offering Memorandum (OM), detailed financial disclosures, 3-year post-PIP projection models, debt financing options, or to schedule a private tour, please reach out to the exclusive broker:
Amit Sharma
Hospitality Investment Advisor
Signature Hospitality Advisors
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Direct Phone: (714) 709-3909
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Email: amit@shadvisors.com
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Property Address: 3500 E. Colorado Blvd, Pasadena, CA 91107-3832
Quick Glance
- Listing ID:
CL-California-28043
- Status:
Active
- Year Build:
1989
- Building Size:
39,788 SqFt
- Lot Size:
89,298 Acr
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Virtual Tour