The Pasadena asset, known as the Westgate Apartments, is at 231 S. De Lacey Ave. and was purchased from Equity Residential. It was built in 2010.
Waterford and CSCDA had already purchased other phases of the development, known as the Residences at Westgate, earlier this year.
Waterford and CSCDA will lower rents for qualified new residents making 60% to 120% of the area median income.
The two will also set aside 45% of the apartments to be rented to those making 80% or less of the AMI, and 96 units will be set aside for those making less than 50% of the AMI.
“This property provides a valuable opportunity to further expand the amount of affordable housing available in Pasadena. We appreciate the city’s willingness to incorporate this program into their existing housing stock to provide much needed affordability to existing and future residents,” Sean Rawson, co-founder of Waterford Property Co., said in a statement.
Rents currently average $3,241 in the area, but rents at the property will average $2,354 a unit in the first year, a nearly 38% discount to the market average.
“Demand for multifamily apartments remains strong — which also means rents continue to escalate. This essential housing program helps those residents, essential workers and families who struggle to make ends meet. It also demonstrates how we are able to create even more affordability by mixing middle-income housing with very low-income restrictions,” John Drachman, co-founder of Waterford, said in a statement.
Walker & Dunlop Inc.’s Blake Rogers, Hunter Combs, Alexandra Caniglia and Javier Rivera represented Waterford in the transaction.
In Pomona, the buyers plan to invest $18 million to improve the units.
The property acquired is known as 777 Place and is located at 777 E. 3rd St. Picerne Residential was the seller of the garden-style apartment community.
“We are very excited that we were able to work with the city of Pomona and the seller to create a ‘win-win’ solution to a project with expiring affordability covenants. It is very rare that you get to reinvest over $18 million into a project and lower rents. The city’s leadership on this project was remarkable, and we are honored to be long-term partners with them in creating more affordable housing for their residents,” Rawson said in a statement.
Waterford plans to lower rents for residents making 60% to 120% of the area’s median income.
The property was built in 1986. At the time of the sale, it had 94 units reserved for residents making 50% of the AMI. The affordability restrictions were going to expire in 2025.
Waterford and CSCDA are extending that affordability for 30 years to 157 units.
“Upon taking ownership, we are going to immediately lower rents 11% below current market rents on the market-rate units and increase the number of 50% AMI units. This will be a substantial amount of savings for families, students and essential workers in Pomona. We pride ourselves on our ability to create innovative housing solutions for cities,” Drachman said in a statement.
Waterford is the administrator for 12 communities in Southern California being converted to essential housing.
