Furthermore, the recently enacted AB-2221 allows a developer to account for accessory dwelling unit (ADU) potential from the start of planning, rather than waiting for certificate of occupancy and then applying for additional ADUs. Per the ADU laws, a developer can add up to 25% of the total unit count which means an additional 12 accessory dwelling units (ADUs) can be added. This brings the total number of potential units to an impressive 60. Notably, this expansion does not affect the maximum building envelope, which remains at 83,359 square feet, and it does not require any additional affordable housing units. Therefore, the final 60 units would be split into 5 affordable units (8%) and 55 market-rate units (92%).
In summary, this outstanding opportunity provides developers with over 83,000 square feet of building space to fit up to 60 units in. This translates to average unit sizes of around 1,000 square feet, depending on the percentage of the building given to non-residential use (lobby, fitness center, hallways, etc.). This average unit size allows ample room for developers to curate an attractive unit mix that includes the full spectrum of unit types from smaller studio apartments to large 4-bedroom units and everything in between.
NOTE: Buyer to rely on their own research to confirm development potenital.
