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.

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