More than a dozen houses that were slated to be demolished as part of a failed effort to extend the 710 Freeway have sold, and several of them have gone for thousands of dollars above asking price.
All net proceeds from the sales will go toward developing affordable housing in the city, according to Pasadena Housing Director Jim Wong.
The historic homes, which sat vacant for decades, were put on the market as-is by the city of Pasadena last fall. According to the listings, a few of the homes were uninhabitable.
But that didn’t dissuade buyers.
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The 13 houses sold for between $750,000 to more than $3.4 million, with the average purchase price around $1.5 million.
“We are very pleased with the outcome,” Wong told LAist. “These critically needed dollars will enable the city to address the affordable housing shortage in Pasadena.”
How we got here
The properties were set to be demolished decades ago to extend the 710 Freeway through Pasadena, South Pasadena and El Sereno.
Caltrans ended up purchasing hundreds of homes to make way for the extension, but construction was never completed.
The project faced legal challenges and widespread opposition from residents who objected to how the freeway would impact their communities, particularly by displacing thousands of residents and destroying homes and businesses.
Several of the homes were put up for sale last year, including some properties earmarked for affordable housing in the L.A. neighborhood of El Sereno. Caltrans invited private and public groups to submit their interest in the El Sereno homes, which were slated to be auctioned off last summer.
When the city of South Pasadena put five of the homes on the market last fall, the properties attracted thousands of potential buyers. Most sold for thousands above asking — even with boarded up windows, damaged floors and peeling paint — with the costliest going for nearly half a million dollars more.
But unlike the South Pasadena properties, people didn’t get to scope out the Pasadena homes in person. There were no public open houses or broker tours allowed — virtual viewings only.
How much the Pasadena homes sold for
Most of the properties were sold as offered, including a four-bedroom, two-bath duplex on Pasadena Avenue. The house, which is more than a century old, was purchased for $750,000, according to city officials.
One property was purchased for nearly double the asking price.
A six-bedroom, four-bath house on State Street sold for more than $3.4 million, according to city officials. The house, built in 1912, was on the market for $1.75 million.
Five of the houses ended up selling for thousands over offer, including two on State Street that were represented by Bill Podley, a broker associate with the real estate company Compass.
Podley told LAist last October that most of the homes were in poor condition after sitting empty for so long. Some had paint peeling from the walls and holes in the floors, for example.
“These properties are not for the faint of heart,” he said. “Because you're really buying something you're not too totally certain as to its condition.”
What’s ahead for affordable housing
Pasadena also purchased four smaller, non-historic homes from Caltrans that were not on the market. Those properties may be renovated for affordable homeownership housing.
The city is required to fund three affordable units with the net sales proceeds from every property it purchased from Caltrans. Wong confirmed the 13 homes that were sold, in addition to the four non-historic ones set aside, will generate at least 51 units of affordable housing.
Pasadena officials have to use the proceeds for affordable housing by the end of this year. The city can extend the deadline if needed, subject to state approval, according to Wong.
There are other homes that have been or will be sold to their tenants, according to the city. Some will also be sold to nonprofits.
