Current Property Description
Avalon Monrovia is a mixed-use development composed of a single building containing 154 apartment residential units, 3,500 square feet of ground-floor retail, and a five-story, six-level 286-space parking garage on a 2.1-acre site. Thirteen of the dwelling units are reserved for lower-income residents. The property received Certificate of Occupancy in the summer of 2021 and now is the home to many residents.
Prior Property Uses
The 2.1-acre site was made up of a 1.25-acre site with a 20,865 square foot office building and an 0.85-acre site that had 6,000 square foot office building and a machine shop. The properties were assembled to make 1 contiguous land area. The properties were held separately by 2 different ownership groups who were not related to one another.
Acquisition Consulting Challenges and Solutions
The vision for what is now Avalon Monrovia started in January 2016. REDGRU approached 1 of the 2 property owners who was entering a new phase in the investment cycle and possibly considering disposing of the property. The City required a minimum of 2 acres for a development project at this location and acquiring 1 property was not enough. REDGRU then approached the neighboring property owner who was also interested in a sale too. The land value of both properties together exceeded the as-is value by at least 30%. As a result, the property owners agreed to an option contract that gave AvalonBay Communities 2 years to entitle the Project and obtain building permits to start construction.
Land Use Consulting Challenges and Solutions
The existing zoning code allowed for 54 units per acre with a height limitation of 4-stories, which was not enough density to create land value for the property owners. To meet the pricing expectations of the property owners, REDGRU researched ways to increase the density. 1 option was to seek a General Plan Amendment, Zone Change and Full Environmental Impact Report. It was determined that this would be lengthy process that likely was going to meet heavy opposition from the community. REDGRU researched a 2nd option and presented it to the City Manager. This option utilized the California State Density Bonus Law – incorporate affordable housing and you can get more density as well as increase the height limitation without having to do a GPA or Zone change. The City never had a development project utilize this law and it took some research by the City Attorney to move it forward. Ultimately, the City agreed with REDGRU’s proposal. This option would ultimately be more palatable to the community, would take less time for the developer and would bring much needed affordable housing to local residents.
Other Development Challenges and Solutions
The Project had several design considerations that related to both future operations and construction. These considerations required significant coordination with neighboring property owners. REDGRU led the communication efforts with all the property owners and other stakeholders. All affected parties voiced their concerns and AvalonBay carefully addressed each one. In the end, it was a win-win result for both sides.
Timeline of REDGRU Involvement
REDGRU was involved in the Project from its inception in January 2016 until March 2020 once construction was well underway. REDGRU provided acquisition and land use/development consulting services to the Client.