**CBG Finds Success with Affordable Microunit Development in Pasadena**
Partners Christian Hart and Joe Seager have developed multiple affordable housing projects across California and the Southwest since launching Community Builders Group (CBG) in 1999. Until recently, though, microunits weren’t part of the company’s vision—until a convergence of timing, opportunity, and need redirected their focus.
According to Hart, the concept emerged when a small land parcel near existing CBG developments in Pasadena became available, supported by the city’s ongoing efforts to combat its affordable housing shortage. Working alongside cityLAB UCLA and local stakeholders, CBG embraced the opportunity.
“The city wanted to create more units,” said Hart. “Between Pasadena’s efforts to streamline the entitlement process and friends who introduced us to the land opportunity, we moved forward on the transaction and entitlement process.”
The result was Pasadena Studios, a 180-unit affordable microunit development at 280 N. Oakland Ave., located near Old Town Pasadena and LA Metro’s Gold Line. The project opened in 2023, leased up within four months, and has maintained full occupancy since.
### An Innovative Approach to Affordable Housing
Pasadena Studios stands out by offering an affordability-focused take on microunits. Hart explained that historically, bond financing hadn’t supported affordable microunit developments, as California renters typically demanded larger spaces suitable for families.
However, shifting demographics and changing lifestyles began to influence market trends. Hart noted that apartment sizes across the state have gradually shrunk over time. What started with roommate arrangements eventually evolved into a desire for independent living. “People wanted the freedom to decorate their units and live on their own,” he said.
Escalating land prices and increased demand for more cost-effective rentals also contributed to the rise of microunits. To make Pasadena Studios possible, CBG combined funding from California tax-exempt bonds and both state and federal tax credits. “You’re typically layering multiple sources to ensure the transaction is viable,” Hart explained. “In this case, we bought right, financed right, built right, and designed right.”
### The Tenants of Pasadena Studios
The units at Pasadena Studios range in size from 245 to 270 square feet and target renters earning no more than $53,000 per year. Despite their compact size, the property boasts a variety of amenities, including a landscaped rooftop deck, courtyards, community and business centers, a fitness center, bike storage, barbecue areas, and fire pits.
Originally envisioned as transitional housing for young adults—many of whom are settled in temporary jobs or managing student loan debt—Hart said the resident population has pleasantly surprised him. Senior citizens have also gravitated toward the studios as an ideal downsizing solution.
“They’re affordable and fit a simplified lifestyle,” Hart said. “You end up with an interesting tenant mix of younger individuals and older adults. Often, housing challenges lead people to live in ways they hadn’t previously considered, but this has turned out to be even more successful than I anticipated.”
### Looking to the Future
CBG is now planning additional microunit developments across California. However, challenges such as labor shortages, tariffs, and rising construction costs are slowing progress. Hart explained, “Our projects are planned years in advance, so we have to address reserves and inflation now. Those factors are currently impacting our ability to break ground.”
Still, the success of Pasadena Studios provides a replicable template. “We now have a visible, functional model to show stakeholders,” Hart said. “Our team gives property tours at least once a week.”
While Hart is optimistic about the future of affordable microunit developments, he also believes they are just one piece of the larger housing solution puzzle. “Microunits aren’t a silver bullet,” he said. “But they’re definitely part of the overall answer to our affordability crisis.”
