Another one! Congrats to the team Casitas on this week’s Pasadena Multifamily ADU approval. Pasadena is a special city to work in and requires a hands-on approach to entitlement.
During the permitting process, the City enacted a Design and Historic Ordinance making every property 45 years or older eligible for a Historic Review. Fortunate for our client, we have a deep understanding of Cal Govt Code 65852.2(a)(1)(B)(i). After a conversation with the City Attorney, the Director of Planning exempted our project from any historic review, saving an additional 4 – 6 months of Historic Review time and additional 3 – 6 months of corrections due to historic design review elements.
If you’re looking into increasing NoI to your existing multifamily properties, let’s connect!
Case Study – Moderate Assumptions
Existing Property: 8 Unit Multifamily Building – Pasadena CA
ADU Type: 2 x 490 SF Attached garage conversions (25% of Unit Count)
Entitlement Time: 7 Months Hard + Soft Cost: $175,000 (Owner/Builder $87,500/door) NoI: $40,500 ($2,250 Mnt/Unit @ 75% OPEX)
Completed Project Valuation: $1,012,500(@ 4% Cap Rate)
Tax Rate Valuation:$18,000 ($225 a year in additional taxes blended to existing property tax)
Profit: $837,500
ROI: 479% (1 Year timeline 7 Months Entitlement, 3 months construction, 2 Month Lease Up)