Hines has strategically navigated Los Angeles' new mansion tax by acquiring the Pasadena Gateway Villas, a 140-unit apartment complex, for $60 million. This move, occurring after the implementation of the Measure ULA tax imposing fees on property sales above certain amounts, reflects a growing trend among developers seeking tax relief. The transaction garnered significant attention, with the complex drawing over 40 offers, emphasizing Pasadena's attractiveness due to zero mansion tax, enhancing its appeal in a competitive market. Despite controversies surrounding the mansion tax and ongoing legal challenges from opponents, Hines successfully seized this lucrative opportunity.
Hines strategically acquired a 140-unit apartment complex in Pasadena for $60 million, avoiding L.A.'s new mansion tax due to Pasadena's exemption from the tax.
The $428,571 per unit price reflects high demand, with Hines facing fierce competition—it received over 40 offers—given the tax advantages Pasadena offers developers.
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