Waterford Property Company (Waterford) in partnership with the California Statewide Community Development Authority (CSCDA), a joint powers authority, has announced the acquisition of Westgate Apartments, a 480-unit multifamily property located at 231 S. De Lacey Avenue in Pasadena, CA. Waterford and CSCDA acquired the property for $280 million from Equity Residential.
Upon taking ownership, Waterford, as project administrator for the property, and CSCDA will immediately lower rents for qualified new residents making between 60 to 120 percent of the area median income (AMI) under CSCDA’s middle-income housing program. In addition, Waterford and CSCDA will allocate 45 percent or 216 of the total units to be rented to tenants who make 80 percent of AMI or lower. Ninety-six of the units will be rented to very low-income tenants making under 50 percent of AMI. Existing tenants that do not meet the income restrictions can remain in place until they elect to leave.
“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,” said Sean Rawson, co-founder, Waterford Property Company. This acquisition marks the fourth property in Pasadena to be converted to essential housing by Waterford and CSCDA, bringing the total workforce housing units now available in the city to 1,098 total units. “We are extremely proud of our partnership with the city of Pasadena,” Rawson added.
Built in 2010, Westgate Apartments provides contemporary amenities in a convenient location within walking distance of Old Town Pasadena.
According to Waterford, the average per unit market rent is currently $3,241 in the immediate area. With this essential housing program, per unit rents at Westgate Apartments will be $2,354 in the first year, a 37.65 percent discount to market.
“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. To date from what we’ve seen across our portfolio, we know that this program makes a real difference in helping to keep essential workers close to their jobs and in their communities,” said John Drachman, co-founder, Waterford Property Company.
Blake Rogers, Hunter Combs, Alexandra Caniglia, and Javier Rivera of Walker & Dunlop represented Waterford in the transaction.
As noted, this is the fourth property in Pasadena added to Waterford’s essential housing portfolio. Waterford now administers 12 communities in Southern California that have been converted from market rate to essential housing bringing its portfolio to 3,700 units and over $2.2 billion of tax-exempt bond issuances, confirming the firm as the most active sponsor in CSCDA’s middle income housing program in California.
Waterford Property Company is a diversified real estate investment and development company with an established track record in the acquisition and development of over $2 billion in multifamily and commercial properties. Its expertise includes developing mixed-use multifamily projects throughout California, developing and investing in affordable housing and repositioning existing commercial properties. It is led by its co-Founders John Drachman and Sean Rawson. For more information, visit www.waterfordco.com.
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. For more information, visit www.cscda.org.
