358 Metropole Avenue, Avalon, CA 90704
Multi-Family Home For Sale
1,780 sqft
5,878 sqft lot
This triplex consists of three units: Unit A is a 2 bed 1 bath, Unit B is a 2 bed 2 bath, and Unit C is a 1 bed 1 bath
This lot has potential for 5 units, under the city code which allows 40 units per acre in high density multifamily zones. That means two additional units can be added. The property features stunning ocean views.
The lot is zoned HD-R-CH, which stands for High Density Residential Community Housing. That means the units are required to be affordable for moderate incomes. However, there are many subsidies and offerings by the city to help.
One of the advantages of HD-R-CH zoning is that this is the only zoning designation with no maximum lot coverage restrictions. This property also has the possibility for density bonuses, allowing you to add even more units to the property than 2, which are already approved.
The city of Avalon provides a very supportive environment for redevelopment, to help meet their goal of adding housing units to the island to comply with the RHNA (Regional Housing Needs Allocation) set by the State.
With land on the island being in extremely limited supply, the opportunity to own a parcel this size is priceless. But, we’re willing to offer this property for the very reasonable price of only $2,000,000.
contact@re4.sale
This parcel’s zoning designation limits units on the property to moderate and low income only. However, the exact mix between moderate and low is not specified, and is up to negotiation with the City. Moderate income is defined as a maximum of 120%, or 20% above the median income of LA County. Low income is defined as 80%, 20% below the area median income. The specific monthly rent amounts for these designations are currently $2,160 for a 1 bedroom–moderate income, and $1,178 for a 1 bedroom–low income, with the dollar amount increasing with number of units. For more information, view here: https://planning.lacounty.gov/wp-content/uploads/2024/05/housing_2024-income-limits-costs.pdf This property may also be eligible for affordable housing property tax exemptions.
According to the numbers above, if 5 units were to be built in the property, and 3 were to be moderate and 2 low income, that would add up to 3 × $2,160 which is $6,480 + 2 × $1,178 which is $2,356. Added together the total is $8,836. That number is just for 5 units, 6 or more units are possible on the property due to density bonuses.
Supposing the sixth unit was required to be low income, that would add $1,178 per month for a total of $10,014 in monthly income. That equals $120,168 yearly. With $2M for the purchase and another $2M estimated for new construction, the total cost of the project would be around $4M. That means the income from this property at 6 units would pay that off in a minimum of 33 years. Consider a 40 year mortgage. View this offer: https://www.needhambank.com/personal/residential-loans/40-year-mortgage. Or consider a HUD 221(d)(4) loan. An affordable loan specifically for multifamily properties, backed by the federal government with terms of up to 40 years. Janover is the largest provider of these loans in the country. View their offering here: https://hud221d4.loan/