In a major historical milestone, the South Pasadena City Council during a closed session Wednesday night is set to consider offers for five historic residential houses recently acquired from Caltrans, at last fulfilling the city’s hard-fought plan to restore the properties to city tax rolls after decades of desultory state ownership.
Under the legislation that enabled the transactions, the city purchased the properties at the price Caltrans paid decades ago as part of its failed SR 710 extension project, and can sell them at current market prices.
The properties are only the first of several dozen the city is slated to purchase in the coming months that will also be made available for resale.
The city’s real estate agent, Dave Way, CEO of the Dave Knight Real Estate Team, said each of the five properties—on Fairview, Fremont, Meridian and Hope Avenues–received multiple offers, the vast majority for over one million dollars.
But it is unclear who the bidders are. That’s because many are corporations, partnerships or LLCs rather than individuals. Mr. Way told the South Pasadenan News they specifically asked the bidder’s agents not to submit a buyer letter stating why they want the property or intend to do with it because the Council wanted to be objective in assessing the bids.
Nor is it certain the Council will accept any of the bids Wednesday. “We’re going to show them the offers and engage in a discussion on how to proceed.” He said he would make a recommendation but declined to disclose it ahead of the Council meeting, which will be closed because it concerns negotiations.
Mr. Way said that while the Council will likely focus on the higher offers, “we want to find the ones that will make it through escrow.” The highest offer does not always do so, he noted. “So we will probably do more research based on what the Council wants.”
He also said real estate sales normally go through a counter offer process but that might not happen here either. The intent of counter price process is to get the best price. “Clearly high price is important but also important is the city’s vision of someone who will appreciate the historic nature of the property and have the means to execute on the rehabilitation and be a part of the community.”
The city has also expressed interest in terms such as cash and non-contingency offers.
From his perspective, Way said, part of Wednesday’s meeting means “supporting the broader vision of investing in affordable housing.” Under the legislation that enabled the city’s purchase of the properties, the city must use a portion of the proceeds to create three affordable units for each property sold.
Later on the city’s open agenda Wednesday, the Council will consider approving a contract for the development of an affordable housing project on an 18,000-square-foot parcel on El Centro Street, where the South Pasadena Theatre Workshop is now located. The contract is with Related/SoCal Development LLC.
When prioritizing development proposals, the city sought outcomes including those that enable 52 units, that can serve low-income senior households, and that will help the city achieve the goals set out in its 2021-2029 Housing Element.
