PASADENA, CA -Waterford Property Company in partnership with California Statewide Community Development Authority (CSCDA) has bought THEO, a 105-unit multifamily community located at 289 N. El Molino Ave. in Pasadena, for $67 million.
Upon taking ownership of THEO, Waterford, as project administrator, and CSCDA will immediately lower rents for qualified new residents making between 60% to 120% of the area median income (AMI) under CSCDA s middle income housing program. Annual rent increases are capped at no more than 4 percent and existing tenants that do not meet the income restrictions can remain in place until they elect to leave.
Average in place rent per unit at THEO is currently $3,562. As part of this essential housing program, average per unit rent with the new rent restrictions in place will be $2,860. Each unit will recognize a savings average of $702 per month or $8,421 on average per year, decreasing rents 19.9 percent below current in-place rents.
This is more than a real estate transaction. This program benefits people. It provides a vehicle to make housing in California more affordable while providing residents a chance to experience real savings. We believe this program will help our essential workers, such as medical workers, teachers, and service professionals, remain in the cities where they work, said Sean Rawson, co-founder, Waterford Property Company.
This is the third property in Pasadena added to Waterford s essential housing portfolio. Waterford now administers 10 communities in Southern California that have been converted from market rate to essential housing bringing its portfolio to 2,748 units and over $1.6 billion of tax-exempt bond issuances, further making the firm one of the most active sponsors in California.
The Pasadena City Council approved the transaction at its August 2 meeting in a 9-0 vote. Pasadena Councilmember and Chair of the Economic Development Committee Tyron Hampton confirmed his approval for the project noting, This brings us certainly needed workforce housing…which is something we need…It was a unanimous choice from the committee in favor.
The San Gabriel Valley multifamily market is experiencing record low vacancy rates at 1.7 percent. This allows landlords to dramatically increase their market rents. By reducing rents for essential workers, we are providing a solution to the challenges many renters are and will be facing. We are thankful that the city of Pasadena has recognized this issue and is working with our team to do something to help, said John Drachman, co-founder, Waterford.
Institutional Property Advisors Kevin Green and Gregory Harris represented Waterford in the transaction with the seller Summerhill Communities.

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HOUSTON, TX – Sentinel Real Estate Corporation announced that it has bought Three Thousand Sage, a 324-unit mid-rise apartment community in Houston. The transaction presented an opportunity for Sentinel to buy a high-quality asset where it can leverage its extensive operational expertise to implement a capital improvement program intended to enhance income and the value of the investment.
Three Thousand Sage is optimally located in the desirable Galleria/Uptown submarket of Houston, an affluent area that is often referred to as the city s second downtown. The property is located in close proximity to the area s major employment hubs, including the Uptown Houston office submarket, the 11 million-square-foot Greenway Office Park, and Downtown Houston, which are home to hundreds of employers – including 10 of the city s 26 Fortune 500 companies – representing hundreds of thousands of jobs. Texas Medical Center, the largest medical center in the world with 106,000 direct employees and 72,000 students, is also within five miles of the property. Three Thousand Sage is located two blocks from the Houston Galleria Mall – the largest mall in Texas – and provides convenient access to Houston airports and a variety of retail, restaurant and entertainment options via the I-610 Inner Loop, Westpark Tollway and I-69.
In Three Thousand Sage, we have recognized an opportunity to buy a high-quality asset in a desirable market that has seen significant increases in demand driven by consistently strong job and population growth, said Michael Streicker, President of Sentinel. Multifamily vacancy rates are currently at their lowest point since 2015, and the region saw 20,000 net go-ins in the first half of 2021 – the strongest two quarters on record. The property is well positioned to capitalize on that demand, ideally situated in the heart of several high-profile employment hubs in Houston. This acquisition exemplifies our proven investment strategy, and we look forward to making improvements that make an even better place for our residents to live.
Built in 2004, Three Thousand Sage is a four-tale, 324-unit apartment complex comprising one- and two-bedroom units averaging 1,006 square feet. Each residence features high-quality finishes such as nine- and 10-foot ceilings, granite countertops, large garden tubs, hardwood-style floors, walk-in closets, full-sized washer-dryers and intrusion alarms. Select units include stainless steel appliances, a private patio or balcony, a private office with built-in computer desk, glass front cabinets, double vanities in the bathrooms and travertine flooring. Community amenities include two resort-style pools, a cabana with gas grills, a well-appointed fitness center, two resident lounges, and an electronic parcel locker system.
Sentinel intends to realize additional value through a capital improvement program that will both enhance the shared amenities – including the pools, lounges, lobby and fitness center – and upgrade all interior finishes to include stainless steel appliances and wood-style flooring. The firm will also leverage its deep institutional knowledge and experience owning and operating multifamily assets to explore additional opportunities to improve the resident experience.
Sentinel has been active in the Houston market throughout its 51-year history, having owned and operated 28 multifamily properties in the area, comprising over 9,200 units. Since its inception, Sentinel has bought a national portfolio of multifamily real estate on behalf of domestic and international institutions. The firm will continue to leverage its market expertise and deep industry relationships to identify attractive investment opportunities throughout the region.

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LAS VEGAS, NV – An affiliate of Walton Street Capital announced that it has bought and recapitalized a 286-unit mid-rise community located at 3850 West Nevso Drive in West Las Vegas in partnership with The Calida Group.
Completed in 2021, the Property features a mix of studio, one-, and two-bedroom apartments that are currently 96% leased. Unit and property amenities include designer interiors with contemporary finishes, fully equipped kitchens with stainless steel appliances, plank flooring, a luxurious resident clubhouse, an outdoor pool with cabanas and grill areas, an oversized fitness center with a yoga/spin studio, tanning salon, dog park and rooftop deck overlooking the Las Vegas Strip.
Elysian Palms is situated just one mile west of the Las Vegas Strip, which is the heart of the metro area and is home to over 30 major casinos, 145k hotel rooms, and 8 million SF of convention space and countless retail, dining, and entertainment venues. With nearby proximity to Interstate 15 & Highway 215, residents can easily access numerous employment nodes and recreational facilities including a scenic trail system, parks, and professional sporting events.
The Elysian at the Palms represented the opportunity to buy a recently constructed, high quality residential product, differentiated in a premier lifestyle location. We are excited about our venture with The Calida Group in this transaction and look forward to expanding our partnership together, said Andrew Gindy, Senior Principal at Walton Street.
We anticipate that the Las Vegas market is well positioned for continued population growth, relative affordability, low levels of new supply, and the ongoing cyclical recovery of the leisure sector, said Robert Bloom, Managing Principal at Walton Street.

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