CBG Finds Success with Affordable Microunit Project

Partners Christian Hart and Joe Seager have developed multiple affordable housing projects throughout California and the Southwest since launching their company, Community Builders Group (CBG), in 1999. But the idea of creating affordable multifamily microunits (small, single-room units measuring from 200 to 400 square feet) had never crossed their minds. That is, until a series of events converged into what Hart told ApartmentBuildings.com was “the perfect timing mechanism.”

Those events included the availability of a small land parcel near other CBG developments (in conjunction with cityLAB UCLA) and the city of Pasadena’s ongoing hunger for more affordable residential units to offset housing shortages.

The result of this convergence was Pasadena Studios, a 180-unit multifamily property at 280 N. Oakland Ave. near Old Town Pasadena and LA Metro’s Gold Line. The project, which opened in 2023, leased up in four months and has remained fully occupied since then.

The units range from 245 to 270 square feet and are geared toward renters earning a maximum annual salary of $53,000. The plentiful amenities include a landscaped rooftop deck and courtyards with seating, multiple gathering spaces, a community room/business center, fitness center, bicycle storage, a barbecue area and fire pits.

Pasadena Studios was envisioned as housing that would appeal to younger adults who were trying to figure out the next steps in their lives. However, Hart said that the rental population includes senior citizens. “They’re downsizing, so all of the things they acquired in a lifetime are going away,” he explained. “Then they move into microunits because they’re affordable, and it fits their lifestyles.” As a result, “we have an interesting tenant mix, with a lot of young people and a lot of seniors,” Hart said.

Hart told ApartmentBuildings.com that at one time, the demand was for larger rental units that could accommodate roommates and families. However, as lifestyles changed and renters wanted more privacy, smaller units—including microunits—came into play. Additionally, an increase in land prices and the need for more affordable housing “have inspired folks to look at different options,” Hart observed.

Hart said CBG plans to build additional affordable microunit properties throughout California. However, the lack of labor, tariff confusion, and increasing construction costs are putting this plan on a temporary hold. The good news is that Pasadena Studios has given CBG a microunit template to show to interested parties. “I’ve given a lot of tours of the property,” Hart said. “Our team is giving a tour of Pasadena Studios at least once a week.”

Hart said he believes that microunits are here to stay. However, he cautioned that such projects are not the only or best solution to the affordable housing crisis. “It’s part of an overall solution,” he said.