PASADENA, Calif.—A local investment group aligned with the Los Angeles-based upscale organic grocery store chain Erewhon has closed escrow on the former I. Magnin department store (then Borders Books); a historic retail building at 475 S. Lake Ave. In February 2021, The New York Times ran a feature article on Erewhon, “How Erewhon Became L.A.’s Hottest Hangout,” detailing the chain’s successful rise the past decade to become a hub not only for health-food enthusiasts but also for celebrities and influencers,...