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Sunday, Oct 1, 2023

Waterford Picks Up Pasadena Properties for Workforce Housing

Waterford Property Co. and California Statewide Communities Development Authority have purchased two multifamily properties in Pasadena for a combined $335.1 million.

The acquired assets were Residences at Westgate and The Hudson. Waterford and CSCDA plan to provide workforce housing at the buildings.

Residences at Westgate is a 340-unit community at 31 S. DeLacey Ave. and was purchased for $237 million. It was built in 2015 and has 20,521 square feet of retail space.

Eastdil Secured’s Joseph Smolen, Geoff Boler and Lee Redmond represented both parties in the sale.

The Hudson, with 173 units, is located at 678 E. Walnut St. and was purchased for $98.1 million.

The property was built in 2018 and has roughly 11,000 square feet of retail space.
Walker & Dunlop Inc.’s Blake Rogers, Hunter Combs, Alexandra Caniglia and Javier Rivera represented both parties in the sale.

Both buildings are roughly 96% occupied, according to Waterford.

Waterford will serve as the property administrator.

CSCDA created a workforce housing finance program in 2020. The program uses tax exempt bond financing to acquire multifamily projects.

Once CSCDA and Waterford take over properties, they lower rents for qualified residents who make 80% to 120% of the area’s median income.

Existing tenants who meeting eligibility requirements can participate during lease renewal.

Waterford estimates tenants save an average of 14% on rent.

“Each day we are reminded of the state’s housing crisis and the lack of affordable housing options for its citizens. This program was created because there are very few affordable housing funding sources for the 80% to 120% AMI (area median income) households. We are encouraged by the positive response from city leaders and the very real opportunity to make a difference for thousands of essential workers and residents across Southern California seeking quality housing options that they can afford,” Waterford co-founder John Drachman said in a statement.

This year, Waterford and CSCDA have acquired six multifamily communities in Southern California with a combined 2,022 units with more than $1 billion of acquisition value.

Locally, that includes properties in Glendale and Long Beach.

The Glendale property was purchased earlier this year by Waterford and CSCDA for $300 million.

Known as Altana, it is a 507-unit luxury property at 633 N. Central Ave.

Altana will also be converted into middle-income housing for tenants making between 80% and 120% of the area’s median income.

Earlier this year Waterford and CSCDA purchased a 216-unit luxury apartment community in Long Beach for $120 million.

The property is known as Oceanaire and is located at 150 W. Ocean Blvd. It is also being converted to middle-income housing.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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