LotROI Consultant Report: 1842 South Bonnie Brae Street, Los Angeles, CA 90006
Property Overview
Address: 1842 South Bonnie Brae Street, Los Angeles, CA 90006 Lot Size: 36,962 sqft Zoning: R-1 / SB9 Eligible Land Use: Vacant Estimated Land Value: $3,030,884
Strategy Landscape
The following development strategies were analyzed for the subject property:
| Strategy | Cost ($) | Revenue ($) | Profit ($) | ROI (%) | Timeline (mo) | Risk | Score |
|---|---|---|---|---|---|---|---|
| Sell as-is | 200,000 | 3,182,000 | 2,982,000 | 1491.0 | 4 | Low | 95.53 |
| Outdoor storage / RV yard | 339,000 | 2,870,000 | 2,531,000 | 746.6 | 6 | Medium | 86.46 |
| 24-stall RV park | 674,000 | 3,648,000 | 2,974,000 | 441.2 | 14 | Medium | 76.17 |
| 8-unit townhome subdivision | 3,398,000 | 6,029,000 | 2,631,000 | 83.6 | 22 | Medium | 75.42 |
| 15.5k sqft warehouse | 2,868,000 | 5,159,000 | 2,291,000 | 79.9 | 18 | Low | 74.21 |
| 52-unit infill apartment | 17,762,000 | 370,080,360 | 352,318,360 | 2062.9 | 32 | Medium | 68.71 |
| Mixed-use 41-unit + retail | 18,202,000 | 258,440,760 | 240,238,760 | 1372.6 | 38 | High | 64.17 |
| Hold / land bank (5y) | 133,000 | 4,304,000 | 4,171,000 | 3136.1 | 60 | Medium | 63.00 |
Recommended Strategy
The recommended strategy is to Sell as-is. This approach yields a profit of $2,982,000 with an ROI of 1491.0% over a 4-month timeline, classified as low risk. This strategy achieves the highest score of 95.53 among all analyzed options. The property's R-1 zoning and SB9 eligibility, combined with its vacant status, make it attractive for immediate disposition to buyers seeking to leverage small-lot subdivision or by-right multi-family pathways.
Risk Watchlist
- Market Volatility (Sell as-is): While low risk, shifts in buyer demand or interest rates could marginally impact the final sale price or timeline.
- Permitting Delays (Development Strategies): For all development strategies (e.g., RV park, townhomes, apartments, warehouse, mixed-use), permitting processes can introduce unforeseen delays and cost overruns, particularly in Los Angeles.
- Construction Costs (Development Strategies): Fluctuation in material and labor costs can compress profit margins for any new construction.
- Market Absorption (Development Strategies): For larger projects like apartments or mixed-use, successful lease-up or sales absorption within projected timelines is critical.
- Legislative Changes (Hold/Development): Future changes to zoning, SB9, or other housing policies could impact long-term value or development potential.
Suggested Next Steps
- Engage Broker: Immediately list the property with a reputable commercial real estate broker specializing in land sales in the Los Angeles market.
- Due Diligence Package: Prepare a comprehensive due diligence package for prospective buyers, highlighting the SB9 eligibility and development potential.
- Market Outreach: Target developers and investors interested in infill residential opportunities or specialized commercial uses like outdoor storage.
- Monitor Market Conditions: Continuously assess local market conditions to optimize pricing and sale terms.