Real estate investment giant Hines has further strengthened its multifamily portfolio with the acquisition of a 140-unit Pasadena Gateway Villas residential property in Pasadena, California. The property, located at 290 North Hudson Avenue, was purchased from Washington Capital for $60 million in a transaction that closed last week.
The multifamily complex spans 135,940 square feet, resulting in a price per square foot of $441 and a price per unit of approximately $428,571, according to Traded. This premium pricing reflects the property’s desirable location in Pasadena’s competitive residential market.
Washington Capital, which initially acquired the property in December 2016 for $48 million, realized a $12 million appreciation over their roughly eight-year holding period. This represents a 25 percent increase in property value, highlighting the consistent demand for quality multifamily assets in the Los Angeles metro area.
The transaction was facilitated by Newmark’s Chris Benton, Kevin Shannon, Anthony Muhlstein, Dean Zander, Gabe Munson, and Ken White, representing the seller. Debt financing for the acquisition was arranged by Jonathan Firestone and Blake Thompson.
According to Kidder Mathews’ Q4 2024 Los Angeles Multifamily Report, the regional market has maintained a stable 4.9 percent vacancy rate throughout 2024, with average asking rents showing a modest year-over-year increase of 0.86 percent to $2,240. The market is experiencing a significant slowdown in new construction deliveries, down 28.04 percent from the previous year, while net absorption increased by 33.65 percent, indicating strong demand despite limited new supply.
The Hines acquisition price of $428,571 per unit is notably higher than the Los Angeles County average sale price of $271,991 per unit in Q4 2024, positioning this transaction among the premium multifamily investments in the region. With construction deliveries declining and average sales prices remaining relatively stable (-0.06 percent year-over-year), well-positioned assets like the North Hudson Avenue property continue to command premium valuations in this supply-constrained market.
This acquisition aligns with Hines’ ongoing strategy to expand its residential real estate holdings in prime urban markets. The firm has been actively targeting properties with value-add potential in high-barrier-to-entry locations like Pasadena, which continues to attract residents due to its strong employment base, cultural amenities, and proximity to downtown Los Angeles.
Industry analysts note that despite fluctuations in the broader real estate market, well-located multifamily assets in supply-constrained markets remain attractive investment opportunities for institutional buyers like Hines, who can leverage their operational expertise to enhance property performance and drive returns.
