California’s Public Insurer Buys Pasadena Office Tower on Lake Avenue

A California public insurer with 112 years of history is putting down permanent roots on one of Pasadena’s most recognizable office corridors.

State Compensation Insurance Fund has purchased the nine-story office building at 35 N. Lake Ave. in Pasadena’s central business district, according to a statement Tuesday from CBRE, the global commercial real estate firm that represented the buyer. The 158,785-square-foot Class A tower — LEED Gold certified and long a fixture of the South Lake Avenue corridor — was acquired from Swift Real Estate Partners for an undisclosed price.

State Fund, a not-for-profit public enterprise established by the California Legislature in 1914 to provide workers’ compensation insurance to any California employer, will occupy a portion of the building as a Southern California regional hub, according to CBRE’s statement.

The remaining space is being offered to third-party tenants. The company plans to renovate the building and add amenities including a fitness center and shared meeting space open to all tenants, CBRE said.

“Acquiring this building marks an important milestone for us, highlighting our efforts to optimize our real-estate footprint and underscoring our lasting investment in the area, our valued customers, and, above all, our Southern California employees,” said Andreas Acker, Executive Vice President and Chief Administrative Officer at State Fund, in a statement released through CBRE.

The nine-story building sits just north of Colorado Boulevard in Pasadena’s central business district, close to retail, dining, and financial services tenants along Lake Avenue and with access to the Metro A Line. It carries a Walk Score of 96, according to commercial property data.

Brad Chelf, Ron Wade, and Taylor Watson of CBRE represented State Fund in the transaction. JLL represented Swift Real Estate Partners, the seller. Swift will continue to manage the property, CBRE said.

“This transaction provided our client with a well-located office asset that supports both near-term operational needs and long-term flexibility,” said Chelf, a senior vice president at CBRE. “The property’s location and existing infrastructure position it well for owner-occupancy and continued leasing activity.”

The acquisition adds a public, nonprofit owner-occupier to a Pasadena office market that has been navigating elevated vacancy since the pandemic. The vacancy rate in the broader Pasadena and Tri-Cities office market reached approximately 24.5 percent in late 2024, according to commercial real estate data, though market observers noted modest stabilization signs in late 2025.

The building was previously part of the “Pasadena Collection,” a three-property, 516,890-square-foot portfolio Swift acquired from PGIM Real Estate for $193 million in 2019. Swift sold one of those three buildings — 790 E. Colorado Blvd. — in August 2025, and retains ownership of the adjacent property at 155 N. Lake Ave.