Pasadena Multifamily ADU Approval

Pasadena Multifamily ADU Approval

Another one! Congrats to the team Green Development 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.

Multifamily ADU approval Pasadena Greendev

If you’re looking into increasing Net Operating Income (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)

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