Newport Beach, CA (June 16, 2021) – Waterford Property Company (Waterford), a diversified real estate investment and development company, in partnership with the California Statewide Communities Development Authority (CSCDA) has announced the $335,100,000 acquisition of two Pasadena multifamily communities, the Residences at Westgate, a 340-unit class A multifamily property, and The Hudson, a 173-unit class A multifamily property, to provide housing affordability 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 Avenue, for $237 million and The Hudson, located at 678 E. Walnut Street, for $98.1 million. 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 billion 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 percent 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 percent to 120 percent 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.
“This program is an important tool for city leaders. We applaud the work of CSCDA in developing this option and giving cities the opportunity to show essential workers how important they are to the fabric of the community. The essential workers this program benefits are nurses, teachers, young professionals, construction tradespeople, and administrative assistants whose incomes tend to be too high to qualify for most affordable housing, but are too low to afford new market rate housing,” added Sean Rawson, co-founder, Waterford.
The Residences at Westgate were developed in 2015. In addition to the multifamily units, the property includes 20,521 square feet of retail space. The Hudson was built in 2018. In addition to its 173 units, the property includes 11,409 square feet of retail space . Both projects are about 96 percent occupied.
Waterford Property Company is a diversified real estate investment and development company with an established track record in the acquisition and development of over $1.2 billion in multifamily and commercial properties. Its expertise includes entitling large mixed-use projects throughout Southern California, repositioning existing commercial properties as well as the development of a variety of affordable housing projects. It is led by its co-Founders John Drachman and Sean Rawson.
CSCDA is a joint powers authority founded by the League of California Cities and the California State Association of Counties in 1988 to enable local government and eligible private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 cities, counties and special districts, and has issued more than $65 billion through 1,700 plus transactions across its diverse public benefit financing programs.
