Hines Acquires Pasadena Gateway Villas For $60 Million

A Houston-based global real estate investment, development, and management firm has purchased Pasadena Gateway Villas, a 140-unit multifamily community in Pasadena, California, for $60 million from Washington Capital. 

The acquisition by Hines Interests Limited Partnership, announced late last month, represents the first ownership change for the property since its construction in 2002, with the new owner planning to implement a value-add strategy to enhance the community. 

The property at 290 North Hudson Avenue consists of two five-story buildings offering studio, one-, two-, and three-bedroom apartments ranging from 637 to 1,179 square feet. The apartments are designed to cater to the submarket’s affluent tenant base, featuring gas fireplaces, in-unit washers and dryers, and select homes include private balconies or patios and vaulted ceilings. 

“Pasadena Gateway Villas is a beautifully maintained apartment community that has been owned and managed by the same group since its construction in 2002,” said Chris Benton, Senior Managing Director at Newmark. “Under new ownership, a value-add plan will be implemented to make the property comparable with the preeminent resort-style properties in the market. Its strong fundamentals—favorable transaction size, prime location and strategic positioning—make it a standout asset in a submarket poised for growth and constrained by a lack of new supply coming in the near future.” 

The transaction, which closed at approximately $429,000 per unit, drew significant interest from potential buyers. Kevin Shannon, Newmark Co-Head, U.S. Capital Markets, noted, “The intensity of the bidding for this opportunity in Pasadena was incredible with over 40 offers received. The fact that there is no Mansion Tax in Pasadena was a significant factor in adding to the depth of the buyer pool.”

Residents have access to numerous amenities including a pool and spa, fitness center, multiple outdoor lounge areas, a clubhouse, business center, picnic area with barbecue, and more than 230 parking spaces. 

The property’s location provides convenient access to transportation options, situated within a five-minute walk to the Metro Lake Light Rail Station and near the 210 and 134 freeways. The community is less than a mile from downtown Pasadena, approximately 14 miles from downtown Los Angeles, and is surrounded by an array of dining options, entertainment venues, and world-renowned educational institutions such as Caltech. 

Newmark represented the seller in the transaction. The complete brokerage team included Kevin Shannon, Chris Benton, Vice Chairmen Ken White and Dean Zander, Executive Vice Chairman Mitch Clarfield, Managing Director Anthony Muhlstein, and Senior Financial Analyst Gabe Munson. 

Newmark Group, Inc. (Nasdaq: NMRK) is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. For the twelve months ended December 31, 2024, Newmark generated revenues of over $2.7 billion.