City Sells 13 Former Caltrans Homes for Over $19.6 Million, Fueling Affordable Housing Funds

The City of Pasadena has sold 13 historic homes formerly owned by the California Department of Transportation (Caltrans) for a combined total of over $19.6 million, with proceeds earmarked to fund the development of affordable housing in the city. Wong said the city netted $18.47 million.

The sales, which closed between December 2025 and February 2026, mark the end of a long and storied chapter for the properties, many of which sat vacant for decades after being acquired for the now-defunct 710 Freeway extension project.

The homes, located in the 600 and 700 blocks of South Pasadena and South St. John avenues, as well as on State Street, Madeline Drive, and Palmetto Drive, sold for prices ranging from $750,000 to a staggering $3.4 million.

The average sale price across the 13 properties was approximately $1.51 million.

The sales process, which began after the Pasadena City Council authorized the city manager to negotiate the sales on June 23, drew significant interest from buyers, despite the fact that the homes were sold “as-is” and required substantial renovation.

This sale is the culmination of a multi-decade saga that began in the 1960s and ’70s when Caltrans acquired hundreds of homes for a planned extension of the 710 Freeway. After the project was officially terminated in 2018, the fate of these properties remained in limbo. Legislation, specifically SB 959, eventually allowed the City of Pasadena to purchase the vacant properties from Caltrans at their original acquisition price, with the mandate that the proceeds from their subsequent sale be used to create affordable housing. For every property purchased from Caltrans, the city is required to fund three new affordable units.

“We are very pleased with the outcome,” Pasadena Housing Director James Wong told LAist in a recent interview. “These critically needed dollars will enable the city to address the affordable housing shortage in Pasadena.”

The sale of these 13 homes, along with four other non-historic properties the city acquired for direct use as affordable housing, is expected to generate at least 51 new affordable housing units.

The sales themselves were dramatic, with five of the 13 homes selling for significantly over their asking prices. The most notable sale was the property at 237 W State Street, a six-bedroom, four-bath house built in 1912. Listed at $1,750,000, it sold for $3,428,000 on Feb. 3, 2026 — a remarkable 95.9% over the asking price. In contrast, eight of the properties sold at their asking price.

The City of Pasadena partnered with three real estate firms to market and sell the properties: DPP | Compass, Sotheby’s International Realty, and Mutual Realty Consultants. Bill Podley and his team at DPP | Compass handled five of the sales, including the record-setting State Street property. Michael B. Bell of Sotheby’s International Realty and Michael Slaughter of Mutual Realty Consultants each handled four of the sales.

Here is a complete breakdown of the sales:

With the sales now complete, the city has until the end of 2026 to deploy the funds into affordable housing projects, a deadline that can be extended with state approval.