Houston-based Hines nabbed Pasadena Gateway Villas for $60 million in March, securing the priciest sale in Pasadena in the first three quarters of the year, according to Los Angeles County tax assessor data. The seller was Washington Capital Management, based in Seattle.
This is the latest installment in a feature providing a weekly update on top sales by market segment, based on TRD Data for given periods. You can see the top 10 multifamily sales in Pasadena for the first nine months by clicking here.
The deal for the 140-unit four-story Pasadena Gateway Villas at 290 North Hudson Avenue equated to $428,571 per unit.
Brokers Kevin Shannon, Chris Benton, Ken White, Dean Zander, Mitch Clarfield and Anthony Muhlstein of Newmark represented the seller. Newmark’s Gabe Munson represented the buyer.
It is a “standout asset” due to “its strong fundamentals — favorable transaction size, prime location and strategic positioning,” Benton said in a statement.
The property drew more than 40 offers because its location in Pasadena means it is not subject to the City of Los Angeles’ Measure ULA real estate transfer tax, Shannon said.
The voter-approved “mansion tax,” which went into effect on April 1, 2023, imposes a 4 percent fee on all property sales above $5 million and a 5.5 percent fee on sales above $10 million with in the L.A. city limits.
Hines reportedly has a “value-add plan” for the 23-year-old Pasadena complex, Benton said, including an overhaul intended to add resort-style offerings at the 1.6 acre-propert..
Pasadena Gateway Villas — set in the foothills of the San Gabriel Mountains — includes studio to three-bedroom units marketed to the city’s higher-end renter base.
Apartments come with gas fireplaces, in-unit washers and dryers, private balconies or patios and vaulted ceilings. The complex offers a pool and spa, fitness center and outdoor lounge spaces.
“Pasadena Gateway Villas is a beautifully maintained apartment community that has been owned and managed by the same group since its construction in 2002,” Benton said.
Hines’ acquisition is more than double the price of the second-most expensive multifamily purchase in Pasadena. Ranked No. 2 is Alur Apartments, a residential community featuring 51, one- and two-bedroom apartments at 700 Locust Street, which traded for $21.8 million.
And the Alur deal more than tripled the third-priciest deal; a two-building, 24-unit complex at 1720-1724 Huntington Drive that sold for $5.8 million.
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