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6/16/21
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Waterford Property Company, in partnership with the California Statewide Communities Development Authority (CSCDA), has acquired two Pasadena multifamily communities with a combined 513 units, in deals totaling $335.1 mil ($653k/unit).
The Class A purchases include the Residences at Westgate, with 340 units, and The Hudson, a 173-unit property. The acquisitions were made as part of an innovative workforce housing finance program created in 2020 by CSCDA.
Waterford, as property administrator, in partnership with CSCDA, a joint powers authority, acquired the Residences at Westgate, located at 31 S. DeLacey Ave, for $237 million and The Hudson, located at 678 E. Walnut St, for $98.1 mil.
The Residences at Westgate were developed in 2015. In addition to the multifamily units, the property includes 20.5k sf of retail space. The Hudson was built in 2018. In addition to its 173 units, the property includes 11.4k sf of retail space . Both projects are about 96% occupied.
Joseph Smolen, Geoff Boler, and Lee Redmond of Eastdil Secured represented both parties in the transaction for the Residences at Westgate. Blake Rogers, Hunter Combs, Alexandra Caniglia, and Javier Rivera from Walker & Dunlop represented both parties for The Hudson transaction.
Since the start of the year, Waterford and CSCDA have acquired six multifamily communities in Southern California, totaling 2,022 units of housing and over $1 bil of acquisition value as part of this essential housing program.
Using tax exempt bond financing, CSCDA can acquire multifamily projects providing much needed housing for the middle-income workforce demographic. Upon taking ownership, Waterford and CSDA are able to immediately lower rents for qualified new residents making between 80% and 120% of the area median income (AMI). Current tenants who qualify can participate in the program during lease renewals. Waterford anticipates average rental savings of approximately 14% for new tenants leasing at its Pasadena properties.
The City of Pasadena voted to participate as part of the CSCDA program in a unanimous 9 to 0 vote, underscoring the council’s approval of the program as an opportunity to provide housing affordability within its city.
“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 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,” said John Drachman, co-founder, Waterford.
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