City Approves Contracts For Broker Services on Caltrans Homes

The City Council on Monday authorized the City Manager to enter into professional services contracts with local real estate brokers for the sale of five Caltrans properties.

Under the agreement, William Podley, Compass (formerly Deasy Penner Podley), Michael Slaughter/Mutual Realty Consultants and Michael Bell/Sotheby’s International Realty will provide broker listing services for the marketing, listing, and sale of the residential properties for a one-year combined $1,387,260 contract. 

In the 1950s, 1960s, and 1970s, Caltrans acquired 460 properties in Pasadena, South Pasadena, and El Sereno for the construction of its 710 North Project, which would have connected the northern stub of the 710 with the 210 Freeway. 

The project was officially terminated with the 2018 certification of the final environmental impact report on the freeway and subsequent legislation in 2019. 

The Roberti Act, SB 86, was enacted in 1979 for the purpose of preserving, maintaining, and expanding the supply of affordable housing to affected persons and families of low- or moderate-income. 

In October the City Council approved contracts allowing for security and property inspections on 17 Caltrans properties, but decided to allow brokers who did not turn in all of the required paperwork to do so in an effort to make sure the process was fair and equitable. 

The process was only extended to brokers that had already submitted initial paperwork. 

The City has identified four of the properties as potential affordable homeownership opportunities, with the remaining 13 properties to be marketed and sold to market buyers. 

City staff will return to Council with a recommendation to acquire the properties including information about the due diligence findings. Marketing will begin while the properties are in escrow, which will require the services of listing agents. All properties will be sold in “as-is” condition. 

Many of the properties are in poor condition after many years of vacancy. As proposed, buyers will be required to execute a performance deed of trust in the form of an addendum to their purchase and sales agreement to ensure that the properties are maintained, brought up to code, and occupied within a reasonable period of time.

The City will enter into purchase and sale agreements with Caltrans after conducting its due diligence, including property appraisals and inspections.