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

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

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 Article

WNC Investors CEO Wilfred N. Cooper Jr. and the Cameron Park Apartments (Credit: Google Maps)

Investor’s long hold on a West Covina affordable housing development pays off

Thomas L. Safran and the firm’s president, Andrew David Gross, and the project site (Credit: Google Maps)

Safran & Associates’ planned rental project seeks affordable incentives amid legal challenge to city’s popular program

SRO Housing Corporation CEO Anita U. Nelson, the development site, and a rendering of the project

As LA’s homeless population climbs, affordable developer plans 81-unit complex in Echo Park

Adam O’Neill and the development site (Credit: Google Maps)

San Pedro-mania! Another mixed-use project planned for the nabe