A 40-unit apartment building will replace a commercial space and four studio apartments in Sawtelle.
A Roseville entity filed plans for the project this week, taking advantage of density bonuses via the city’s Transit Oriented Communities program to boost the size and number of units in the project. Water Tower LLC set aside four units as affordable for “extremely low income” households. There will also be 33 vehicle parking spaces and 44 bicycle parking spaces.
The property is a unique triangular lot at 2412 Federal Avenue encircled by 20-foot wide alleys with quick access to interstates 10 and 405. It follows another large TOC project a few blocks away on at 12001 Pico Boulevard, which was filed in June. The developer is Santa Monica-based West Coast Investors.
Water Tower LLC leads to a Roseville firm called Asset Preservation. It is an intermediary that helps investors defer capital gains tax via the Internal Revenue Service’s Section 1031 exchange program. The program allows an investor to defer those taxes if the proceeds of the sale are invested into a similar kind of property.
Developers have planned more than 1,000 affordable units via the TOC program since it launched in September 2017. The program provides significant density bonuses to developers in exchange for building affordable units in developments near major transit options.