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

The Gabay brothers want to bring back District Square (Credit: Department of City Planning via LA Times)

Gabay lawsuit to revive District Square may have merit

From left: Community Preservation Partners President Anand Kannan and Jonathan Rose Companies founder: Jonathan F.P. Rose, with the Golden West Tower Apartments (Credit: Google Maps and iStock)

Affordable developer teams up to buy Torrance senior housing complex

Regulatory fees are culprit in housing building costs (Credit: iStock)

It costs $500K to build one affordable housing unit in LA

A rendering of the project (Credit: Ian Espinoza Associates vis Urbanize)

Westfield adds affordable units to $1.5B Promenade redevelopment

Developers Mark and Arman Gabay are suing the city for rejecting their 577-unit District Square project in South L.A. (Credit: Department of City Planning via LA Times)

Gabays sue LA after it rejects their 577-unit resi project

Dr. Jayasinghe and a rendering of the project (Credit: Metro via Curbed)

Metro rejects plastic surgeon’s 907-unit development in Westlake

LA city council members want to close “loophole” in rent control law

LA measure would make it tougher for landlords to force out tenants for renovations

LA Chamber of Commerce, under CEO Maria Salinas,  explores ballot measure doubling density of resi buildings. (Photo credit: iStock Photo, LA Chamber of Commerce.)

LA Chamber of Commerce explores doubling density of resi buildings