Waterford Property Co. has teamed up with the California Statewide Community Development Authority to acquire THEO, a 105-unit property in Pasadena, Calif. The new owners purchased the property for $67 million, directly from its developers, another joint venture, between SummerHill Apartment Communities and Parse Capital.
Institutional Property Advisors facilitated the sale and worked on behalf of Waterford. Under CSCDA’s middle income housing program, the new owners will reduce rents and convert the property to fully affordable, serving residents earning between 60 to 120 percent of the area median income.
The transaction marks Waterford’s third acquisition in Pasadena and 10th overall in Southern California, a streak that focused on purchasing market-rate properties and transforming them into essential housing. In late October, another joint venture including CSCDA acquired two communities for a combined $183 million in Santa Rosa, Calif., and lowered rents to low- and moderate-income levels.
In 2016, the prior owners acquired the land for the property for $5 million, then secured construction financing and broke ground a year later. Comerica Bank originated the $28 million construction mortgage, according to Yardi Matrix.
Something new, something old
Located on nearly one acre at 289 N. El Molino Ave., the KTGY-designed community features one- and two-bedroom apartments with floorplans ranging between 671 and 1,363 square feet. The single-building, 2020-constructed property features a swimming pool, fitness center, cyber lounge and coworking space, gaming terrace, grilling and picnic area along with a rooftop dog park.
The property is named after the adjacent Theodore Parker Lukens House, the 135-year-old structure is among Pasadena’s oldest. THEO is within two miles of the California Institute of Technology, Pasadena City College and Huntington Hospital. Downtown Los Angeles is less than 12 miles southwest.