The sale of the first five historic homes in South Pasadena owned by the California Department of Transportation was abruptly halted Friday after the state agency called out a city-contracted Realtor for prematurely listing the properties.
Caltrans said the homes are still in its possession. The properties were seized by the state agency more than six decades ago under eminent domain to make way for the now defunct 710 freeway extension, displacing thousands of residents and home in the process.
“Caltrans is currently in escrow with the City of South Pasadena on these five historic properties,” said Eric Menjivar, a spokesperson for Caltrans. “The sale of these properties are pending the approval of the California Transportation Commission.”
Once the commission clears the transfer, Caltrans will complete the sale of these homes to the city of South Pasadena, which entered escrow with Caltrans in late May. The sale is anticipated to happen in the late summer, Menjivar said.
Menjivar said the state agency “did not get a heads-up” about the home sale announcement. “That was not his announcement to make,” he said of the Realtor, “and not only that, it’s very wrong.”
Earlier this week, the Dave Knight Real Estate Team Keller Williams, which has been hired by the city to broker the properties, put out a press release indicating that for the first time in several decades, five historic “710 Freeway homes” would be available for purchase beginning on Friday, June 14.
“We are honored to be representing the City of South Pasadena to bring these historic homes to the market,” Dave Knight, founder of the Dave Knight Real Estate Team, said in a statement at the time. “This is a once-in-a-lifetime opportunity for buyers to acquire these homes, and help restore and return them to their original glory.”
Leaders at the company declined to comment on the issue on Friday. However, a message posted on the Realtor’s website hinted at the complexity of the matter as a result of the involvement of multiple government entities.
“Due to an unforeseen delay, the South Pasadena Caltrans listings are not yet on market as we had planned,” the message read.
“Please note that there are both city and state government entities involved. We cannot share any further information at this time. We hope to have more information by End of Day Monday, 6/17, and will update this website once received. We appreciate your patience,” it added.
South Pasadena officials, for their part, confirmed that the city is still in escrow with Caltrans over the purchase pending approval from the California Transportation Commission. The approval will likely arrive “this coming August,” South Pasadena City Manager Arminé Chaparyan said in an emailed statement Friday.
“Once approved, this completes the sale of the homes to the City and we expect to close escrow at the end of summer. When the sale from Caltrans to the city is completed, there will be a contemporaneous sale to a third party buyer,” Chaparyan said.
“To that end, the city has partnered with the Dave Knight Real Estate Team to market the properties with a broad reach. This is a unique opportunity made possible by SB 381, which was authored by Senator Anthony Portantino. The properties will be offered at market rate,” she added. “The City’s goal is to return these unique historic homes back onto the tax rolls. Also in the spirit of the Roberti Act and as required by SB 381, the proceeds will be used to create much needed affordable housing in the city. “
Menjivar said matters involving the sale of 710 Freeway homes “is very complex” and “very nuanced,” with state law mandating how the agency can sell these homes.
But he added that Caltrans is “moving along in the process” with the sale of these homes, and looks forward to completing the sale with South Pasadena.
The properties in question include four single-family homes and a multi-family lot with three separate bungalows, located at 216 Fairview Ave., 217 Fremont Ave., 225 Fremont Ave., 1707 Meridian Ave. and 726 Meridian Ave.
These properties showcase authentic design elements from a bygone era, featuring Craftsman Bungalow, Spanish Revival and Mid-Century Modern styles, according to the Realtor.
Despite the sale being put on hold, the firm has already attracted significant community interest in the properties.
When reached by the phone on Thursday, June 13, David Way, CEO of the real estate company, said several people had contacted the firm expressing interest in the homes even before the sale was scheduled to kick off on Friday.
He said at the time that he anticipated a lot of people asking about the properties once the homes go on sale on Friday.
Way also said that the homes will be sold at today’s market rate and that the company is working with the city to look for qualified buyers who want to “invest in the city.”
“They’re looking for a buyer who wants to invest in the house because they will have to restore the properties,” Way said of the city. “They are historic homes, so they’re not just a regular house where they can buy it and do whatever they want. They’ll be looking for buyers who appreciate the history of the home and the area, and then one to restore it back to what it used to be like.”
South Pasadena Mayor Evelyn G. Zneimer said in a statement that the city is excited to see new homeowners move into these properties and “restore them to their original luster.”
“The City of South Pasadena has long been known as one of the safest and most livable cities in Southern California,” Zneimer said. “We are thrilled to have access to these historic homes–you just don’t see houses built like this anymore.”
The mayor went on to express the city’s gratitude for Sen. Anthony Portantino, D-Burbank, who authored the bill that “made it possible for us to start the process of acquiring these vacant homes and returning them to our neighborhoods and tax roll,” she said.
Senate Bill 381, signed into law by the governor in September 2021, allows the city of South Pasadena to buy vacant homes from Caltrans at the original acquisition price from the 1960s.
The city can sell the homes at market value, but the proceeds must be reinvested in affordable housing. In addition, for every historic home sold, the city is required to create three affordable housing units.
This milestone comes after a long-fought battle by South Pasadena and other communities across the San Gabriel Valley.
In the 1960s, the California Highway Commission planned the final five miles of the 710 freeway, purchasing around 450 homes in the 1960s in El Sereno, South Pasadena and Pasadena. In Pasadena specifically, this project cut through Black and low-income neighborhoods in the northwest, displacing at least 4,000 residents and demolishing 1,500 homes.
The freeway extension was officially nixed in 2018. This left a string of historic houses in El Sereno, South Pasadena and Pasadena, many of which remain occupied by tenants who pay rent to Caltrans, but when tenants died or were evicted, Caltrans often left the properties vacant rather than renting them to new occupants.
In July 2023, Pasadena considered acquiring 17 vacant single-family homes under SB 959, a law requiring the state to sell vacant homes from the failed 710 project back to the city to promote affordable housing.
Menjivar said Friday that Caltrans has not yet entered into a contract with the City of Pasadena for these properties.
On May 17, the first two homes in El Sereno were sold to the San Gabriel Valley Habitat for Humanity, which plans to rehabilitate and sell them for no more than $225,000.
Editor’s note: The story has been updated to correctly attribute quotes to David Way, CEO of the Dave Knight Real Estate Team.
