Maltman Bungalows
ULI FALL MEETINGOCTOBER 26, 2011
Civic Enterprise Development LLC
• Boutique L.A.-based infill developer and planner
• Senior research fellow at USC’s SPPD, adjunct professor of Infill Development in MRED program
• Founding board member of the California Infill Builders Association
• Healthy walk to Sunset Boulevard cafes and shops
• Sold out in 2008 while recession was in full swing at about $500,000 a door
• Exclusively first-time homebuyers
Mott SmithCivic Enterprise Development LLC
• Boutique L.A.-based infill developer and planner
• Senior research fellow at USC’s SPPD, adjunct professor of Infill Development in MRED program
• Founding board member of the California Infill Builders Association
• Healthy walk to Sunset Boulevard cafes and shops
• Sold out in 2008 while recession was in full swing at about $500,000 a door
• Exclusively first-time homebuyers
Mott SmithCivic Enterprise Development LLC
• Boutique L.A.-based infill developer and planner
• Senior research fellow at USC’s SPPD, adjunct professor of Infill Development in MRED program
• Founding board member of the California Infill Builders Association
• Healthy walk to Sunset Boulevard cafes and shops
• Sold out in 2008 while recession was in full swing at about $500,000 a door
• Exclusively first-time homebuyers
Mott SmithCivic Enterprise Development LLC
Project #1Maltman Bungalows
Silver Lake, Los Angeles
2006
The housing market was booming.
Condos were going up everywhere.
2006
The housing market was booming.
Condos were going up everywhere.
2006
The housing market was booming.
Condos were going up everywhere.
But new development at higher densities was not leading to more affordability.
But new development at higher densities was not leading to more affordability.
Why not?
Parking requirements.
Parking requirements.
Parking requirements.
Parking requirements.
Also, condo projects can cost $25,000-$40,000 more per door than
equivalent non-condo projects.
Also, condo projects can cost $25,000-$40,000 more per door than
equivalent non-condo projects.
Why?
Common interest subdivisions (e.g., condos) are tailor-made for lawsuits.
Why?
Common interest subdivisions (like condos) are tailor-made for lawsuits.
Then a few brilliant L.A. City Planners decided to do something to fix this.
Small Lot Subdivision ordinance
takes effect in 2005.
The big idea:
Townhouse density (+/- 20 du/ac) with fee simple ownership.
The big idea:
Townhouse density (+/- 20 du/ac) with fee simple ownership.
Lower cost of development.Lower HOA fees.
No lawsuit incentive.
Lower cost of development.Lower HOA fees.
No lawsuit incentive.
Lower cost of development.Lower HOA fees.
No lawsuit incentive.
Meanwhile . . .
Bungalow Courts were being demolished throughout L.A. for higher-density projects
Bungalow Courts were being demolished throughout L.A. for higher-density projects
And Civic Enterprise was looking for its next project.
We found it while driving around.
Maltman bungalows pre-renovation, surrounded by newer mid-rise construction. (local.live.com)
Site: 0.82 acres
Units: 17 (originally built in 1926)
Mix: 11 one-bed (~700 sq. ft.)6 two-bed (~700 sq. ft.)
Zoning: RD2
Looking west towards Maltman Avenue along central driveway just prior to construction.
One of the bungalows prior to renovation.
Original attached garages prior to renovation.
Typical bathroom prior to renovation.
Typical kitchen and utility room prior to renovation.
The Wisehaupt children in the 1940s. The Wisehaupt family owned the Maltman Bungalows from 1935 through 2007. (Photo courtesy of Harold Wisehaupt)
Photo courtesy of Harold Wisehaupt
Courtesy of Harold Wisehaupt
Between November 2005 and November, 2006
List Sale Lot Sale Year SaleTYPE ADDRESS Price Price BR BA SF Size Price/SF Built DOM Date MLS #SFR 2169 Princeton Ave 575,000 588,000 1.0 1.8 864 3,000 681 1938 16 10/5/2006 06-119569SFR 1547 Allesandro St 449,900 440,000 1.0 1.0 702 2,003 627 1923 4 8/14/2006 06-108121SFR 1251 Elysian Park Ave 449,000 449,000 1.0 1.0 480 2,541 935 1923 80 8/1/2006 06-025681SFR 1084 W Edgeware Rd 360,000 373,000 1.0 1.0 408 1,775 914 1928 19 7/19/2006 06-032207SFR 1635 N Alvarado St 409,000 400,000 1.0 1.0 622 3,615 643 1922 98 7/5/2006 06-003133SFR 1510 Morton Ter 367,500 367,500 1.0 1.0 600 2,015 613 1923 18 3/8/2006 06-004441SFR 1710 N Occidental 689,000 680,000 2.0 1.0 810 2,440 840 1938 21 8/29/2006 06-106483SFR 2218 Avon St 629,000 564,000 2.0 2.0 788 3,650 716 1922 69 8/11/2006 06-100861SFR 1589 Curran St 599,000 594,000 2.0 1.0 780 2,750 762 1924 42 7/28/2006 06-100857SFR 1355 Coronado Ter 689,000 675,000 2.0 1.0 896 2,800 753 1923 25 7/25/2006 06-032659SFR 3437 Larissa Dr 648,000 640,000 2.0 1.0 700 3,400 914 1942 15 6/13/2006 06-029361SFR 1544 Sargent Pl 599,000 599,000 2.0 1.0 876 2,840 684 1948 26 4/25/2006 06-013879SFR 1802 W Avalon St 516,000 502,000 2.0 1.0 510 2,550 984 1922 112 3/31/2006 05-066967SFR 630 Laveta Ter 439,900 445,000 2.0 1.0 787 2,250 565 1923 29 3/21/2006 06-003659SFR 1806 Ashmore Pl 374,000 375,000 2.0 1.0 688 2,080 545 1923 72 2/21/2006 05-062063SFR 915 Rosemont Ave 545,000 545,000 2.0 1.0 836 3,000 652 1910 56 1/24/2006 05-063997SFR 1543 Rendall Pl 629,000 625,000 2.0 1.0 766 2,962 816 1926 28 12/2/2005 05-061313
Sale Price per Unit Average Median Sale Price per SF Average MedianAll Units 521,265$ 545,000$ All Units 744$ 716$ 1 BR 436,250 420,000 1 BR 748 735 2 BR 567,636 567,636 2 BR 737 684
Compact Homes* Sold in Silver Lake-Echo Park (MLS Area 21)
Between November 2005 and November, 2006
List Sale Lot Sale Year SaleTYPE ADDRESS Price Price BR BA SF Size Price/SF Built DOM Date MLS #SFR 2169 Princeton Ave 575,000 588,000 1.0 1.8 864 3,000 681 1938 16 10/5/2006 06-119569SFR 1547 Allesandro St 449,900 440,000 1.0 1.0 702 2,003 627 1923 4 8/14/2006 06-108121SFR 1251 Elysian Park Ave 449,000 449,000 1.0 1.0 480 2,541 935 1923 80 8/1/2006 06-025681SFR 1084 W Edgeware Rd 360,000 373,000 1.0 1.0 408 1,775 914 1928 19 7/19/2006 06-032207SFR 1635 N Alvarado St 409,000 400,000 1.0 1.0 622 3,615 643 1922 98 7/5/2006 06-003133SFR 1510 Morton Ter 367,500 367,500 1.0 1.0 600 2,015 613 1923 18 3/8/2006 06-004441SFR 1710 N Occidental 689,000 680,000 2.0 1.0 810 2,440 840 1938 21 8/29/2006 06-106483SFR 2218 Avon St 629,000 564,000 2.0 2.0 788 3,650 716 1922 69 8/11/2006 06-100861SFR 1589 Curran St 599,000 594,000 2.0 1.0 780 2,750 762 1924 42 7/28/2006 06-100857SFR 1355 Coronado Ter 689,000 675,000 2.0 1.0 896 2,800 753 1923 25 7/25/2006 06-032659SFR 3437 Larissa Dr 648,000 640,000 2.0 1.0 700 3,400 914 1942 15 6/13/2006 06-029361SFR 1544 Sargent Pl 599,000 599,000 2.0 1.0 876 2,840 684 1948 26 4/25/2006 06-013879SFR 1802 W Avalon St 516,000 502,000 2.0 1.0 510 2,550 984 1922 112 3/31/2006 05-066967SFR 630 Laveta Ter 439,900 445,000 2.0 1.0 787 2,250 565 1923 29 3/21/2006 06-003659SFR 1806 Ashmore Pl 374,000 375,000 2.0 1.0 688 2,080 545 1923 72 2/21/2006 05-062063SFR 915 Rosemont Ave 545,000 545,000 2.0 1.0 836 3,000 652 1910 56 1/24/2006 05-063997SFR 1543 Rendall Pl 629,000 625,000 2.0 1.0 766 2,962 816 1926 28 12/2/2005 05-061313
Sale Price per Unit Average Median Sale Price per SF Average MedianAll Units 521,265$ 545,000$ All Units 744$ 716$ 1 BR 436,250 420,000 1 BR 748 735 2 BR 567,636 567,636 2 BR 737 684
Compact Homes* Sold in Silver Lake-Echo Park (MLS Area 21)
Our goals:
1.Subdivide Maltman Bungalows as SFRs
2.Restore units’ historic character
3.Sell below current entry-level pricing
Our goals:
1.Subdivide Maltman Bungalows as SFRs
2.Restore units’ historic character
3.Sell below current entry-level pricing
Our goals:
1.Subdivide Maltman Bungalows as SFRs
2.Restore units’ historic character
3.Sell below current entry-level pricing
The Deal:
1.Closed in early 2006 for $2.95 million
2.60% acquisition financing
3.80% LTC construction loan
4.Single equity investor
The Deal:
1.Closed in early 2006 for $2.95 million
2.60% acquisition financing
3.80% LTC construction loan
4.Single equity investor
The Deal:
1.Closed in early 2006 for $2.95 million
2.60% acquisition financing
3.80% LTC construction loan
4.Single equity investor
The Deal:
1.Closed in early 2006 for $2.95 million
2.60% acquisition financing
3.80% LTC construction loan
4.Single equity investor
The Deal:
1.Closed in early 2006 for $2.95 million
2.60% acquisition financing
3.80% LTC construction loan
4.Single equity investor
Challenges:
1.New ordinance
2.Relocation
3.Entitlements
4.Utilities work
Challenges:
1.New ordinance
2.Relocation
3.Entitlements
4.Utilities work
Challenges:
1.New ordinance
2.Relocation
3.Entitlements
4.Utilities work
Challenges:
1.New ordinance
2.Relocation
3.Entitlements
4.Utilities work
Montage of bungalows during renovation.
Looking west along central driveway during utilities trenching process.
Unsalvageable wooden windows and doors were documented and replaced with custom reproductions. Nearly all original hardware was restored.
Original garage rooflines were documented and reproduced in new construction. Note 6” air gap between the rebuilt structures.
Skilled craftsmen reproduced original stucco texture on rebuilt garages, each matching the unique finish of the attached bungalow.
Paint colors were chosen from a period-appropriate pallate.
Photos by Axel Koester
Schedule:
1.Entitlements – 9 months2.Construction – 12 months
3.Sales (2007-2008) – 3 months for 16 units, 6 months for last unit
Results
• Preserved a classic bungalow court
• Created 17 new first-time homeowner households (including three former tenant households)
• Demonstrated market for compact units
• Helped work through some regulatory issues for small lot projects
• Doubled our investors money
• Achieved a 17% net margin
Results
• Preserved a classic bungalow court
• Created 17 new first-time homeowner households (including three former tenant households)
• Demonstrated market for compact units
• Helped work through some regulatory issues for small lot projects
• Doubled our investors money
• Achieved a 17% net margin
Results
• Preserved a classic bungalow court
• Created 17 new first-time homeowner households (including three former tenant households)
• Demonstrated market for compact units
• Helped work through some regulatory issues for small lot projects
• Doubled our investors money
• Achieved a 17% net margin
Results
• Preserved a classic bungalow court
• Created 17 new first-time homeowner households (including three former tenant households)
• Demonstrated market for compact units
• Helped work through some regulatory issues for small lot projects
• Doubled our investors money
• Achieved a 17% net margin
Results
• Preserved a classic bungalow court
• Created 17 new first-time homeowner households (including three former tenant households)
• Demonstrated market for compact units
• Helped work through some regulatory issues for small lot projects
• Doubled our investor’s money
• Achieved a 17% net margin
Results
• Preserved a classic bungalow court
• Created 17 new first-time homeowner households (including three former tenant households)
• Demonstrated market for compact units
• Helped work through some regulatory issues for small lot projects
• Doubled our investor’s money
• Achieved a 17% net margin
Lessons Learned
• Create your own model.
• Know your regulators well.
• Entrepreneur’s advantage—spotting a product (small homes) and a regulatory pathway (SLO) that bigger developers hadn’t.
• Investor—getting the right investor can make all the difference.
• Design—The woonerf works.
• One and two bedrooms
• Healthy walk to Sunset Boulevard cafes and shops
• Sold out in 2008 while recession was in full swing at about $500,000 a door
• Exclusively first-time homebuyers
Lessons Learned
• Create your own model.
• Know your regulators well.
• Entrepreneur’s advantage—spotting a product (small homes) and a regulatory pathway (SLO) that bigger developers hadn’t.
• Investor—getting the right investor can make all the difference.
• Design—The woonerf works.
• One and two bedrooms
• Healthy walk to Sunset Boulevard cafes and shops
• Sold out in 2008 while recession was in full swing at about $500,000 a door
• Exclusively first-time homebuyers
Lessons Learned
• Create your own model.
• Know your regulators well.
• Entrepreneur’s advantage—spotting a product (small homes) and a regulatory pathway (SLO) that bigger developers hadn’t.
• Investor—getting the right investor can make all the difference.
• Design—The woonerf works.
• One and two bedrooms
• Healthy walk to Sunset Boulevard cafes and shops
• Sold out in 2008 while recession was in full swing at about $500,000 a door
• Exclusively first-time homebuyers
Lessons Learned
• Create your own model.
• Know your regulators well.
• Entrepreneur’s advantage—spotting a product (small homes) and a regulatory pathway (SLO) that bigger developers hadn’t.
• Investor—getting the right investor can make all the difference.
• Design—The woonerf works.
• One and two bedrooms
• Healthy walk to Sunset Boulevard cafes and shops
• Sold out in 2008 while recession was in full swing at about $500,000 a door
• Exclusively first-time homebuyers
Lessons Learned
• Create your own model.
• Know your regulators well.
• Entrepreneur’s advantage—spotting a product (small homes) and a regulatory pathway (SLO) that bigger developers hadn’t.
• Investor—getting the right investor can make all the difference.
• Design—The woonerf works.
• One and two bedrooms
• Healthy walk to Sunset Boulevard cafes and shops
• Sold out in 2008 while recession was in full swing at about $500,000 a door
• Exclusively first-time homebuyers
http://www.flickr.com/photos/dylanpassmore/5583411502/sizes/m/in/photostream/
The front door should be the real in-and-
out. Not just ceremonial.
Thank You