Multifamily development in San Pedro surges, thanks in part to Opportunity Zones

New projects are being proposed for the South Bay, after renewed interest

TRD LOS ANGELES /
Aug.August 19, 2019 12:00 PM
The Spot at 2139 South Pacific Avenue and Adam O’Neill, president of Square One Homes, LLC, and Stonebridge Real Estate Group Inc. (Credit: Google Maps, iStock)
The Spot at 2139 South Pacific Avenue and Adam O’Neill, president of Square One Homes, LLC, and Stonebridge Real Estate Group Inc. (Credit: Google Maps, iStock)

Developers and investors have been taking advantage of San Pedro’s designation as a federal Opportunity Zone with several projects planned. That has helped spur renewed interest and demand in the South Bay.

Now, a local developer has submitted plans for a 101-unit mixed-use project in San Pedro, property records show. The project at 2111-2139 South Pacific Avenue will include ground floor retail space.

The four-story building would include 89 market-rate units and 12 units set aside for affordable construction.

The project ownership is tied to Adam O’Neill, who heads up two Los Angeles-based firms, Stonebridge Real Estate Group and Square One Homes. Plans were proposed through RKD 2111 Pacific LLC. Neither O’Neill nor attorney Jonathan Lonner of the law firm Burns & Bouchard — which is representing the applicant — could be reached.

The lots were purchased through two LLCs, in 2015 and 2018. The total amount paid for both was $2.51 million.

Because the developer is including the affordable component, a request was made for 47.5-percent density bonus, and height and floor area bonuses. If approved, the complex would replace a small bar called The Spot.

Elsewhere in San Pedro, firms are taking advantage of the designated Opportunity Zone — which allows investors to put untaxed capital gains into development projects in distressed areas — and planning more residential projects in the downtown area. Earlier this summer, Nathan Hobba of South Bay Developers LLC filed plans to build a 99-unit apartment complex at 433 W. 5th Street. Starwood Capital Group used its Opportunity Zone fund to team up with Holland Partner Group to build a 375-unit project at 550 S. Palos Verdes Street in downtown San Pedro. And Galaxy Commercial Holding also filed plans to build a 137-unit apartment at 511 S. Harbor Boulevard, which also can take advantage of Opportunity Zone benefits.

Square One Homes is building several other projects around L.A., including another multi-family development on the border of Westlake and Echo Park. The firm filed for that project in 2016.


Related Articles

arrow_forward_ios
Brookfield Asset Management CEO Bruce Flatt

Brookfield scoops up Carson industrial properties for $64M

Brookfield scoops up Carson industrial properties for $64M
Holland Partner Group’s Clyde Holland and a rendering of the San Pedro project (Credit: MVE+Partners)

Holland Partner Group plans another resi project in San Pedro

Holland Partner Group plans another resi project in San Pedro
The coronavirus pandemic could worsen California’s affordable housing crisis

COVID-19 exposes the utter dysfunction plaguing affordable housing development in California

COVID-19 exposes the utter dysfunction plaguing affordable housing development in California
From left: Neil Shekhter and Governor Gavin Newsom (Credit: Kevin Scanlon, Justin Sullivan/Getty Images, and iStock)

Tenant group calls for CA rent strike

Tenant group calls for CA rent strike
Skid Row Housing Trust CEO Lee Raagas and a rendering of the project (Credit: Michael Maltzan Architecture via Urbanize)

Skid Row Housing Trust, Michael Maltzan Architecture plan mass-timber housing tower

Skid Row Housing Trust, Michael Maltzan Architecture plan mass-timber housing tower
Los Angeles City Attorney Mike Feuer (Credit: iStock)

City Attorney Mike Feuer will run for mayor. Here’s what it means for LA real estate

City Attorney Mike Feuer will run for mayor. Here’s what it means for LA real estate
Hobart Garden Apartments at 1344 N Hobart Boulevard (Credit: Google Maps)

Reiner Communities pays $48M for 142-unit East Hollywood complex

Reiner Communities pays $48M for 142-unit East Hollywood complex
Steve Ballmer, Mayor James Butts and the Forum (Credit: Jeff Gross/Getty Images, Frederick M. Brown/Getty Images for WE Day, and Ritapepaj/Wikipedia)

Clippers could sail into Inglewood buoyed by Ballmer’s billions

Clippers could sail into Inglewood buoyed by Ballmer’s billions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...