This re-development project converted under-performing ground floor commercial space to very high demand short-term lodging space utilizing the approved hotel use in the existing commercial zone in an extremely supply constrained and highly affluent sub-market of Balboa Island.

A 3rd floor was also added that includes a one bedroom luxury “penthouse” apartment with a private roof deck. In addition, a common area roof deck with outdoor kitchen, eating and lounge space with bay and city light views was added for enjoyment of guests. Most importantly, because the total square footage of the project increased by less than 10%, we were able to grandfather in the existing parking under the original 1962 building code, allowing us to keep all of the ground floor that would have otherwise been dedicated to parking, thereby increasing project cash flow significantly. The result is a boutique 7 unit property that does not exist on the island that could not be replicated under today’s zoning.

This project is an example of how we utilize our deep knowledge and experience of complex zoning and building regulations to maximize value.