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

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

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

Mitch O’Farrell wants this hospital to become housing (Credit: Google Maps and Getty Images)

Gurney housing journey: St. Vincent Medical Center could transform into supportive housing

Welton Jordan of EAH Housing, and the block in South Park where the nonprofit development organization wants to build a 64-unit complex (Credit: Google Maps)

Two affordable housing projects will add 120 units to transformed South Park

14518-14526 Erwin Street (Credit: Google Maps)

Developer wants 71-unit complex to rise in Van Nuys Opportunity Zone

Tenancy in common arrangementsare growing in gentrifying Eastside neighborhoods like Silver Lake, Echo Park and Glassell Park (Credit: iStock)

LA landlords pitch controversial ownership arrangement as rent law kicks in

Monica Rodriguez orchestrated the nixing of a residential project set for the Verdugo Hills Golf Course (Credit: Google Maps, Wikipedia)

The threat of fire doomed this Tujunga resi project. Now the developer will sue

(Credit: Courtesy Santa Fe Art Colony Tenants Association via Los Angeles Magazine and iStock)

Developer sued by DTLA artist collective over rent-restricted building

Adam Shekhter and the 1415 5th Street project

WS Communities boosts affordable housing plans in Santa Monica

AIDS Healthcare Foundation Executive Director Michael Weinstein with a rendering of Crossroads of the World

Judge clears way for Harridge’s Crossroads megaproject