Why This Matters to Investors
- State Mandates Override Local Zoning: SB-4, SB-79, AB-2243, SB-1123, SB-9, SB-1123, SB-35, and other related legislation now allow for increased density, reduced parking requirements, and expedited entitlement processes.
- You can find these articles on my website.
- Entitlement Arbitrage: Investors can acquire underutilized properties, re-entitle them under new state guidelines, and either sell at a premium or develop for long-term cash flow.
- Valuation Uplift: Properties previously valued using traditional comps can now be reassessed based on per-unit development potential, often doubling or tripling land value.
Consulting & Feasibility Services
Dan Harkey and Pacific National Development (Al Marshall, President) offer investor-focused consulting to identify and unlock development potential.
Services include:
- Site feasibility analysis (unit count, building height, parking ratios)
- Entitlement strategy and timeline
- Development matchmaking or JV structuring
- Exit strategy planning (sale vs. hold)
Case Studies
📍 Downtown Long Beach – Tri-Plex Redevelopment
- Current Value: $1.7M (based on comps)
- Lot Size: 22,500 sq ft (150’ x 150’)
- Potential Build: 40 units + subterranean parking
- Post-Entitlement Value: $3.2M ($80K/unit)
- Value of land with entitlements 80 X40= $3.300.000.
📍 LA Metro – Church Property
- Original Value: $1.8M (based on comps)
- New Potential: 108 affordable units + commercial ground floor
- SB-4 Advantage: Reduced parking due to transit proximity
- Post-Entitlement Value: $8M ($80K/unit)
- Value of land with entitlements 108 X 80= $8,640,000
Investor Options
- Acquire & Entitle: Buy undervalued properties and reposition them for resale or development.
- Partner with Owners: Structure JV deals where owners contribute land and investors fund entitlement and construction.
- Tax-Efficient Structures: Owners can remain in deals for depreciation and long-term capital gains benefits.
Let’s Talk
If you’re a property owner or investor seeking high-ROI opportunities in California’s evolving real estate landscape, let’s discuss how we can help you source, entitle, and reposition properties for maximum value.
📞 Dan Harkey – 949-533-8315
📧 dan@danharkey.com