The future headquarters of EarthLink Network may be in Atlanta, but the fast-growing Internet service provider is still expanding around its current home office in Pasadena.
The company, slated to merge with Atlanta's MindSpring Enterprises, has leased 125,348 square feet of space at Pasadena Tech Center, 465 N. Halstead St. EarthLink declined to disclose the value of the eight-year lease with property owner Limar Realty, but commercial real estate professionals estimate the value at nearly $20 million.
EarthLink's current headquarters is at 3100 New York Drive in Pasadena, about a mile from the Pasadena Tech Center. Spokesman Arley Baker said EarthLink will probably house administrative and executive offices at the Tech Center, maintaining the New York Drive and nearby Bradley Street facilities as major call centers.
Insignia/ESG negotiated the deal on behalf of Limar, based in San Mateo. Cushman Realty represented EarthLink.
EarthLink and MindSpring in September announced a merger creating an industry power poised to take a bite out of America Online's position as the dominant ISP. The deal is expected to close early next year.
The merging partners have stated a goal of building their combined customer base to 5 million next year and 8 million in 2001. AOL boasts nearly 18 million customers.
EarthLink in late September signed a 10-year lease for another 95,305-square-foot call center outside Sacramento, where it plans to station 1,000 or more employees.
EarthLink's subscriber base grew by 231,000 during the third quarter, building the total to nearly 1.6 million. Last month, it rolled out new high-speed digital-subscriber-line technology in four cities, including Los Angeles.
EarthLink shares hit a 52-week high of just under $100 in mid-April before falling to a 52-week low of $35 in early August. The shares closed Monday at $45.50 on Nasdaq, down 63 cents.
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Real Estate Trends Pasadena Office Net Absorption (in millions of square feet)
Pasadena Office Vacancy Rates
Note: Net absorption reflects the gain in rented space. Vacancy rate is the total vacant square footage divided by total rentable square footage in all existing buildings. Sublet space is space rented by primary tenants that is vacant and available for sublease.
Source: CoStar Group Inc.