Overview Entitlement Unit Mix Sale Comps Location Financials Pricing Risks Inventory Contact
Broker Opinion of Value  ·  Confidential

181, 185 & 187 Monterey Road

South Pasadena, CA 91030
53-Unit Approved Condominium Development  ·  Entitled, Delivered Without Permits
54,794
Lot SF
1.26
Acres
53
Approved Units
$59.19M
Gross Sellout
Tract Map
Approved
Suggested List Price
$8,000,000
$150,943 / Unit  ·  $146.00 / Land SF  ·  $6,359,820 / Acre
Filip Niculete
Filip Niculete
Senior Managing Director
(818) 212-2748
Glen Scher
Glen Scher
Senior Managing Director
(818) 212-2808
01 / Executive Summary

The Opportunity

181, 185 & 187 Monterey Road presents a fully entitled, 53-unit condominium development opportunity in South Pasadena — one of the most supply-constrained, high-demand submarkets on the Eastside of Los Angeles County. The City has approved the tract map for the project; the property is being delivered without building permits, allowing a buyer to control the permitting and construction process from the ground up.

The approved program totals 53 units across a thoughtful mix of market-rate and moderate-income condominiums, with a modeled gross sellout of $59,190,000. Recent South Pasadena condo comps confirm the underlying exit pricing assumptions, with new-construction product trading at $800–$950+ per square foot.

Finding 01

Tract Map Approved — Entitlement Risk Removed

The City has approved the 53-unit tract map. A buyer steps into a fully entitled for-sale condo project without discretionary approval risk.

Finding 02

Delivered Without Permits — Buyer Controls Construction

The seller is not delivering building permits, giving the buyer control over plan finalization, value engineering, and GC selection before breaking ground.

Finding 03

Comp-Supported Exit Pricing

Recent South Pasadena condo sales at $807–$953/SF validate the model's $900–$1,000/SF market-rate exit assumptions for this submarket.

Finding 04

South Pasadena Submarket Scarcity

South Pasadena is one of the most land-constrained cities in LA County with minimal new condo supply — new product commands a significant premium over resale stock.

02 / Property & Entitlement

Approved Development Program

Parcel Information

Address181, 185 & 187 Monterey Rd, South Pasadena, CA 91030
Lot Size54,794 SF (1.26 Acres)
Entitlement StatusTract Map Approved
Permit StatusDelivered Without Permits
Approved Units53 Condominium Units
Subterranean Parking109 Spaces

Building Program

Total Rentable SF88,111 SF
Total Saleable Unit SF70,351 SF
Market Rate Units46 (10 × 2BR / 36 × 3BR)
Moderate Income Units7 (1 × 2BR / 6 × 3BR)
Avg Unit Size~1,327 SF
Buyer Note: Because the project is being delivered without permits, the buyer retains full control over architectural plan finalization, value engineering opportunities, and general contractor selection — a meaningful advantage versus acquiring a permit-ready or shovel-ready site.
03 / Unit Mix & Exit Value

Modeled Condo Sellout

The table below reflects the approved 53-unit mix and the modeled exit value for each unit type, based on current South Pasadena new-construction condo pricing.

Unit TypeBedroomsQtyAvg Size (SF)Exit $/SFTotal Exit Value
Moderate Income2 Bedroom11,044$400$417,600
Moderate Income3 Bedroom61,344$400$3,225,600
Market Rate2 Bedroom10996$1,000$9,960,000
Market Rate3 Bedroom361,407$900$45,586,800
TOTAL5370,351$59,190,000
Moderate income units priced per City affordability covenant requirements ($400/SF). Market rate pricing benchmarked against recent South Pasadena new-construction condo comps (see Section 04).
53
Total Units
46 Market + 7 Moderate Income
$59.19M
Gross Sellout
Modeled exit value
$841
Blended $/SF
Across saleable SF
$1.12M
Avg Sale Price/Unit
All unit types blended
04 / Market Evidence

South Pasadena Condo Sale Comparables

Recent closed sales of new-construction condominiums in South Pasadena directly support the project's modeled exit pricing for both the 2-bedroom and 3-bedroom unit types.

AddressBeds/BathsSFYear BuiltSold PriceSold $/SFSold Date
820 Mission St #2112 BR / 2.5 BA1,5202016$1,400,000$921.0503/17/2025
820 Mission St #2083 BR / 3 BA2,1602016$1,745,000$807.8708/04/2025
1978 Huntington Dr3 BR / 3 BA1,7302023$1,650,000$953.7608/26/2025
Source: TheMLS / VESTAPLUS. All comps located within South Pasadena (Area 87).
Pricing Validation: The model's market-rate exit assumptions of $1,000/SF (2BR) and $900/SF (3BR) sit modestly above the $921/SF 2BR comp and the $807–$954/SF 3BR comp range — appropriate given this will be brand-new construction versus comps built in 2016–2023.
05 / Location & Market

South Pasadena, CA

South Pasadena is a small, highly desirable city bordered by Pasadena, Los Angeles, and Alhambra — known for its walkable downtown, top-rated schools, and Metro A Line (Gold Line) access into Downtown LA and Pasadena. New condominium supply is exceptionally limited due to the city's compact footprint and restrictive zoning, which has historically supported premium per-square-foot pricing for new construction relative to surrounding submarkets.

Location Highlights

Metro A Line (Gold Line)Walkable access to DTLA & Pasadena
SchoolsSouth Pasadena Unified — top-rated
Downtown WalkabilityMission St corridor — retail & dining
New SupplySeverely constrained — limited land

Submarket Context

Comparable Project820 Mission (38-unit condo complex, built 2016)
2BR Resale Premium$921/SF (2025 sale)
3BR Resale Premium$808–$954/SF (2025 sales)
Buyer ProfileMove-up families, downsizers, Pasadena-adjacent buyers
06 / Development Cost & Profit Analysis

Cost Build-Up & Net Profit

The development cost build-up below reflects hard construction, subterranean parking, and closing costs of sale used to derive the supportable land price.

Development Cost Build-Up
Rentable SF (88,111 SF × $300/SF)$26,433,300
Subterranean Parking (109 spaces × $70,000)$7,630,000
Estimated Soft Costs ⚑$0
Total Development Costs$34,063,300
Total Cost / SF$386.60
Total Cost / Buildable Unit$642,704
⚑ Soft costs (architecture, engineering, fees) currently modeled at $0 and should be confirmed with the development team — this is a placeholder in the underlying model and likely understates true cost basis.
Finished Sale & Net Profit (Pre-Land)
Gross Sellout (53 Units)$59,190,000
Cost of Sale (5%)($2,959,500)
Net Profit From Sale (Pre-Land)$56,230,500
Net Profit From Sale represents gross sellout less selling costs only — before deducting land price, development costs, and construction financing carry, which are isolated in the land residual analysis (Section 07).
07 / Pricing Recommendation

Broker Opinion of Value

The recommended list price of $8,000,000 is derived from a land residual analysis: working backward from the modeled $59.19M gross sellout, net of development costs, construction loan carry, and property tax/insurance carry, to solve for the land price that supports a healthy developer profit margin.

Suggested List Price
$8,000,000
$150,943 / Unit  ·  $146.00 / Land SF  ·  $6,359,820 / Acre
$42.06M
Total Cost (Land + Dev)
$2.83M
Construction Loan Carry
$300K
Tax + Insurance Carry
$11.04M
Developer's Profit
List Price Scenario$/Unit$/Acre$/Land SFDeveloper's ProfitProfit % of Net Revenue
$8,500,000 Stretch$160,377$6,757,309$155.13$10,487,78418.65%
$8,300,000$156,604$6,598,314$151.48$10,708,72419.04%
$8,200,000$154,717$6,518,816$149.65$10,819,19419.24%
$8,000,000 Suggested List$150,943$6,359,820$146.00$11,040,13419.63%
$7,900,000$149,057$6,280,323$144.18$11,150,60419.83%
$7,800,000 Bottom of Range$147,170$6,200,825$142.35$11,261,07420.03%
Profit % of Net Revenue calculated as Developer's Profit ÷ Net Profit From Sale ($56,230,500). Construction loan carry assumes 8% interest, 2-year term, 70% drawn balance. Property tax + insurance carry assumes 1.25% annually on land price over the 2-year construction period.
08 / Risk Disclosure

Key Risks & Considerations

Risk 01

No Building Permits Delivered

Buyer will need to obtain building permits post-close. While the tract map is approved, permit timing, plan check comments, and final cost certainty are not locked in at this stage.

Risk 02

Soft Costs Not Yet Modeled

The underlying financial model currently shows $0 in soft costs (architecture, engineering, fees, marketing). Actual soft costs for a 53-unit condo project typically run 10–20% of hard costs and should be underwritten before finalizing an offer.

Risk 03

Construction Cost Assumption

The $300/SF hard cost assumption should be validated against current GC bids for South Pasadena condo construction, which may run higher given site conditions and subterranean parking scope.

Risk 04

Condo Sellout Timing & Absorption

The $59.19M gross sellout assumes all 53 units sell at modeled pricing. Absorption pace and any softening in the South Pasadena luxury condo market could affect realized pricing and timeline.

Risk 05

Moderate Income Unit Restrictions

The 7 moderate income units carry deed-restricted pricing and likely resale/occupancy restrictions per the City's affordability covenant — buyer should confirm exact terms and compliance requirements.

Risk 06

Construction Financing Market

The 8% construction loan rate assumption should be re-confirmed against current lender quotes at time of acquisition, as financing costs directly affect the supportable land price.

09 / LAAA Team Active Inventory

Current Listings — Land & Multifamily

The LAAA Team at Marcus & Millichap is one of the most active multifamily and development land teams in Los Angeles. Below is a sample of our current inventory across greater Los Angeles and Southern California.

$11,995,000
3219-3249 Overland Ave
Los Angeles
Land100 Buildable Units
$10,500,000
5151 E Arrow Hwy
Montclair
Land300 Buildable Units
$5,595,000
755 E Pine Street
Altadena
Multifamily19 Units
$4,250,000
12335 Osborne Pl
Pacoima
Land293 Buildable Units
$2,000,000
3837 College Ave
Culver City
Land21 Buildable Units
$2,000,000
5321 Riverton Ave
North Hollywood
Land27 Buildable Units
10 / Contact

Meet the Team

16830 Ventura Blvd, Suite 100, Encino, CA 91436  ·  laaa.com

Listing Brokers
Filip Niculete
Filip Niculete
Senior Managing Director Investments
Greater Los Angeles · National Multi Housing Group
(818) 212-2748 Filip.Niculete@MarcusMillichap.com CA DRE: 01905352
Glen Scher
Glen Scher
Senior Managing Director Investments
Greater Los Angeles · National Multi Housing Group
(818) 212-2808 Glen.Scher@MarcusMillichap.com CA DRE: 01962976
Our Team
Luka Leader
Luka Leader
Associate Investments
Pasadena / San Gabriel Valley
Aida Memary Scher
Aida Memary Scher
Associate Director
Santa Monica / Westside
Morgan Wetmore
Morgan Wetmore
Associate
San Fernando Valley
Logan Ward
Logan Ward
Associate
Ventura / Santa Barbara
Blake Lewitt
Blake Lewitt
Associate
West San Fernando Valley
Alexandro Tapia
Alexandro Tapia
Associate
East Hollywood / Koreatown
Operations
Tony H. Dang
Tony H. Dang
Business Operations Manager
Mike Palade
Mike Palade
Agent Assistant
Confidential — For Authorized Recipients Only

This Broker Opinion of Value ("BOV") has been prepared by the LAAA Team at Marcus & Millichap for confidential use by the intended recipient(s) only. It is not an appraisal and should not be relied upon as such. All financial projections, unit sale price estimates, cost assumptions, and profit calculations are provided for illustrative purposes only and are based on information believed to be reliable but have not been independently verified, including but not limited to construction costs, soft costs, financing terms, and condo absorption assumptions. Entitlement status, unit count, and affordability covenant terms are subject to independent verification with the City of South Pasadena. Recipients are encouraged to conduct their own due diligence prior to making any investment decision.

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