Broker Opinion of Value · Shovel-Ready (RTI) Offering

Colima Apartments

18811 Colima Road · Rowland Heights, CA 91748

105-Unit Approved Multifamily Development · Density-Bonus Entitled, Delivered With Full Plans

105

Total Units

1.07

Acres

46,610

Lot SF

144

Parking Stalls

Approved

Housing Permit

Recommended List Price

$6,500,000

Guidance range $5,500,000 – $6,500,000 · $52K–$62K / Unit · $118–$139 / Land SF

Filip Niculete

Senior Managing Director

(818) 212-2748

Glen Scher

Senior Managing Director

(818) 212-2808

01 / Executive Summary

The Opportunity

18811 Colima Road presents a fully-designed, density-bonus-approved 105-unit apartment development on a 1.07-acre hard corner in Rowland Heights, in the heart of the San Gabriel Valley. The project carries an approved Administrative Housing Permit (RPPL2023003872) with every density-bonus waiver granted, and a complete architectural, structural, civil, and MEP construction-document set — a buyer steps into a shovel-ready (RTI) entitlement with the entire design and approval runway already retired.

The approved program stacks four stories of Type V-A residential over a two-level Type I-A concrete parking podium, delivering 84 density-bonus apartments plus 21 ADUs for 105 total income units, 144 parking stalls, a Level-2 podium courtyard, clubhouse, gym, and dog run. The seller estimates remaining permits & fees of $1,167,190 to convert the approved plans into an issued building permit.

Finding 01

Approved & Near-RTI — Entitlement Risk Removed

Administrative Housing Permit RPPL2023003872 is granted with all five density-bonus waivers, and the full construction-document set is complete. Years of design and discretionary-approval risk are already behind the project.

Finding 02

105 Income Units on 1.07 Acres

84 density-bonus apartments plus 21 state ADUs — an effective density (~98 du/ac of buildable area) that is difficult to replicate in low-density Rowland Heights.

Finding 03

Efficient, Lender-Friendly Mix

57 one-bedroom + 27 two-bedroom homes plus 21 ADUs. Only 6 deed-restricted ELI units unlock the 55% density bonus — the balance (~98%) is market-rate.

Finding 04

Supply-Constrained SGV Corner

Hard-corner visibility at Colima Road & Paso Real Avenue, with SR-60 access, in a San Gabriel Valley rental submarket that sees very little new multifamily delivery.

02 / Subject Property

The Asset

Site

Address18811 Colima Rd, Rowland Heights, CA 91748

APN8761-012-015, -016 & -017

Land Area46,610 SF · 1.07 acres (corner)

ZoningC-2 (multifamily permitted, SPR/CUP)

General PlanCG — General Commercial

JurisdictionLA County · Rowland Heights CSD

Program

Total Units105 (84 apartments + 21 ADUs)

Net Residential Area~79,013 SF

Stories6 levels (4 residential over 2-level podium)

Building Height74′-0″ (zoning waiver)

Parking144 stalls provided (119 required)

EntitlementAHP RPPL2023003872 — Approved

Site Plan

Site Plan — Sheet A100 · corner of Colima Rd & Paso Real Ave

Building Elevations

Colima Apartments south and east elevations, Sheet A201

South & East Elevations — Sheet A201

Location. The site occupies the hard corner of Colima Road and Paso Real Avenue in Rowland Heights, an established, supply-constrained rental submarket in the eastern San Gabriel Valley (unincorporated Los Angeles County). It offers strong arterial visibility, immediate access to the SR-60 (Pomona) Freeway, and proximity to the Rowland Heights / Hacienda Heights retail, dining, and employment corridors.

03 / Unit Mix & Density

105 Income Units

The approved program delivers 84 density-bonus apartments (57 one-bedroom and 27 two-bedroom homes) plus 21 accessory dwelling units, for 105 total income-producing units. State density-bonus law and the ADU statute together push effective density well beyond the base entitlement.

Type	Beds	Avg SF	Count
A	1	695	24
A1	1	688	4
B	1	578	8
C	1	692	4
D	1	693	16
E	1	522	1
F	2	989	8
G	2	1,021	8
H	2	1,014	4
I	2	1,089	4
J	2	1,085	3
Total	—	66,181 SF	84

Plus 21 ADUs (12,832 SF): 17 one-bedroom ADUs (578–737 SF) and 4 studio ADUs (549 SF) across Levels 2–5.

Density Calculation

Base density allowed54 units

ELI set-aside (12% of 53)6 units

Density bonus earned55%

Bonus units (0.55 × 53)+30 units

Apartments (base + bonus)84 units

State ADUs (density-exempt)+21 units

Total dwelling units105 units

Affordability. Only 6 Extremely Low Income units (<30% AMI — four 1-BR + two 2-BR), plus one manager unit, are deed-restricted to unlock the 55% bonus. The remaining ~98 units are market-rate, preserving the bulk of the income stream while capturing the bonus density and full ADU count.

04 / Building, Parking & Amenities

The Improvements

Construction & Form

Stories6 (4 residential over 2-level podium)

ResidentialType V-A (Floors 2–5)

Podium / GarageType I-A (P-1 & P-2)

Building Height74′-0″ zoning / 69′-11″ code

OccupanciesR-2, S-2, A-3, B

Fire ProtectionNFPA 13 throughout + enhanced alarm

Parking & Bicycle

Vehicle Required119 stalls

Vehicle Provided144 stalls (incl. tandem)

EV-Capable / EVCS16 (incl. 1 van)

ADA Stalls4

Bicycle — Short Term9

Bicycle — Long Term42

Amenities. Level-2 podium courtyard, multiple community / recreation rooms, a dedicated gym, clubhouse, dog run, resident storage, and bike rooms — a full lifestyle-amenity package consistent with new institutional product.

05 / Entitlement & RTI Status

Shovel-Ready

The heavy lifting is done. The project holds an approved Administrative Housing Permit (RPPL2023003872) with every requested density-bonus waiver granted, plus a complete multidisciplinary construction-document set. A buyer acquires a designed, approved, near-ready-to-issue project — not raw entitlement risk.

Approved Density-Bonus Waiver	By-Right Standard	Approved
Building height	35′-0″	74′-0″
Lot coverage	40%	79%
Front setback (Colima)	20′-0″	3′-0″
Corner setback (Paso Real)	5′-0″	1′-0″
CSD residential buffer	59′ additional	7′-6″ provided
Podium-level landscaping	Ground-level	48% on podium

Per the Administrative Housing Permit approval letter (RPPL2023003872).

Path to permit issuance — remaining permits & fees: $1,167,190 (seller’s estimate). This is the buyer’s primary remaining cost to convert the approved plans into an issued building permit; design, entitlement, and density-bonus approvals are already complete. Complete plan set on file: Architectural (PDS Studio), Structural (Govvis Engineering), Civil (Labib Funk + Associates), MEP / Title-24 (120 Degreez), and Landscape (Garcia Landscape Architect). Buyer to verify all entitlement conditions, plan-check status, and fee estimates directly with the County of Los Angeles.

06 / Valuation Framework

How It Prices

Approved, near-RTI multifamily development land is valued primarily on the entitlement it delivers — benchmarked on a per-unit, per-land-SF, and per-buildable-SF basis against comparable entitled / RTI apartment-site trades, then cross-checked against a residual analysis of stabilized value net of remaining cost to build. The metrics below frame where this offering sits at the indicated value band.

$52K–$62K

Per Total Unit

105 dwelling units (incl. 21 ADUs)

$118–$139

Per Land SF

46,610 SF site

$70–$82

Per Buildable SF

~79,013 SF net residential

Driver 01

Density Already Captured

The 55% density bonus and 21 ADUs are approved — a buyer pays for delivered units, not the risk of pursuing them. This supports the upper end of the per-unit band.

Driver 02

Near-RTI Premium

A full, coordinated CD set and granted waivers compress the buyer’s timeline to permit issuance to the ~$1.17M fee payment, commanding a premium over raw-entitlement land.

Driver 03

Supply-Constrained Submarket

Rowland Heights / east SGV sees little new multifamily delivery; 105 income units of new product is difficult to replicate, supporting rent durability and exit liquidity.

Driver 04

Remaining Cost to Build

Buyer underwrites ~$1.17M in fees plus hard and soft construction costs against stabilized value. Land value is the residual — the band reflects current SGV costs and exit cap rates.

Methodology & verification. The per-unit / per-SF bands above are the LAAA Team’s preliminary framework for this offering and will be finalized against current verified comparable entitled / RTI apartment-land sales in the San Gabriel Valley prior to going to market. All figures are estimates to be independently verified by the buyer; permit & fee amounts are the seller’s estimate and subject to County confirmation.

07 / Development Pro Forma

Estimated Cost to Build & Developer Profit

The illustrative pro forma below underwrites a merchant build at the $6,500,000 recommended list price. It pairs an estimated total cost to build — land, the remaining ~$1.17M in permits and fees, and construction — against a stabilized value derived from new Class-A rents, producing an estimated developer profit of ~$5.5M (~13.5% margin on cost). Hard cost is shown on a builder basis (~$270,000 / unit); a buyer self-performing, as the current owner-builder would, drives the development spread.

Estimated Cost to Build

Land (at recommended list price)$6,500,000

Permits & fees$1,167,190

Hard construction (105 units @ ~$270K)$28,350,000

Soft costs (A&E, financing, legal, insurance, contingency)$4,500,000

Total Development Cost$40,517,190

Stabilized Value (Rental Exit)

Gross potential rent (annual)$3,336,000

+ Other income − vacancy (4%)($21,350)

Effective gross income$3,314,650

− Operating expenses (~34%)($1,130,000)

Net operating income$2,184,650

Stabilized value @ 4.75% cap$46,000,000

~$5.48M

Est. Developer Profit

Stabilized value − total cost

13.5%

Margin on Cost

Profit / total development cost

5.39%

Yield on Cost

vs 4.75% exit · +0.64% spread

Illustrative only. Assumes stabilized Class-A rents (1-BR $2,700 · 2-BR $3,350 · 1-BR ADU $2,350 · studio ADU $2,000, with 6 ELI units at restricted rents), 4% vacancy, ~34% operating expenses, a 4.75% exit cap, and a builder-basis hard cost of ~$270,000 / unit. Rents, construction, and soft costs must be independently verified — Sunny Construction & Development’s actual build estimate should anchor the hard-cost line. This is a feasibility illustration, not an appraisal or a guarantee of results.

08 / Pricing Guidance

Recommended List Price

$6,500,000

Guidance range $5,500,000 – $6,500,000 · Approved 105-unit (RTI-track) development

$52K–$62K

Per Total Unit

$118–$139

Per Land SF

$70–$82

Per Buildable SF

Note: The LAAA Team recommends listing at $6,500,000, with a guidance range to $5,500,000. The pricing is supported by the development pro forma above — a buyer underwriting a merchant build at $6.5M land still models an estimated ~13.5% margin on cost — and by the per-unit and per-land-SF metrics for an approved, near-RTI 105-unit project. Final positioning will be confirmed against current verified comparable entitled / RTI apartment-land sales. The buyer assumes the remaining ~$1,167,190 in permits and fees plus all hard and soft construction costs. This does not constitute an appraisal.

09 / Potential Challenges

Feasibility Headwinds a Buyer Should Underwrite

A complete picture for a buyer. Alongside the approved entitlement and the development upside, the items below are the principal headwinds that should be underwritten when pricing the opportunity.

Challenge 01

Elevated Construction Financing Cost

Construction debt at ~8% carried over a ~2-year build is a material cost of capital that compresses returns and pressures the supportable land price.

Challenge 02

High Hard-Construction Cost

A four-story Type V-A building over a two-level Type I-A concrete podium prices well above garden-style product; ~$300/SF is an aggressive floor for this structured-parking form, not a midpoint.

Challenge 03

Limited Loan Proceeds on Refinance After Completion

The value case leans toward a for-sale sellout rather than a refinance-and-hold; at current rents and exit caps a permanent loan may not fully repay cost, so no cash-out takeout should be assumed at certificate of occupancy.

Challenge 04

Not High Resource or QCT / DDA

The site earns no 30% LIHTC basis boost or affordable-financing advantage; the deed-restricted affordable units (6 ELI) are a cost of the density bonus, not a subsidy.

Challenge 05

ADUs Cannot Be Built Until After C of O

The 21 ADUs cannot be constructed until after the main building's certificate of occupancy, deferring that density and dragging carrying costs before the ADU upside can be delivered.

11 / Contact

Meet the Team

16830 Ventura Blvd, Suite 100, Encino, CA 91436

Visit www.LAAA.com

Listing Brokers

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

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

Associate Investments

Pasadena / San Gabriel Valley

Aida Memary Scher

Associate Director

Santa Monica / Westside

Morgan Wetmore

Associate

San Fernando Valley

Logan Ward

Associate

Ventura / Santa Barbara

Blake Lewitt

Associate

West San Fernando Valley

Alexandro Tapia

Associate

East Hollywood / Koreatown

Operations

Tony H. Dang

Business Operations Manager

Mike Palade

Agent Assistant

Tirajeh Vossoughi-Horton

Investment Brokerage Intern

Confidential — For Authorized Recipients Only

This Broker Opinion of Value ("BOV") has been prepared by the LAAA Team at Marcus & Millichap for the confidential use of the intended recipient(s) only. It is not an appraisal and should not be relied upon as such. All value estimates, per-unit and per-SF metrics, cost assumptions, and permit & fee figures are provided for illustrative purposes only and are based on information believed to be reliable but have not been independently verified, including the architect’s plans and the seller’s estimates. Entitlement status, unit count, buildable area, parking, and affordability covenant terms are subject to independent verification with the County of Los Angeles. Recipients are encouraged to conduct their own due diligence prior to making any investment decision.

© 2026 LAAA Team · Marcus & Millichap · 16830 Ventura Blvd, Suite 100, Encino, CA 91436 · laaa.com · License: CA 01930580

Colima Apartments

The Opportunity

Approved & Near-RTI — Entitlement Risk Removed

105 Income Units on 1.07 Acres

Efficient, Lender-Friendly Mix

Supply-Constrained SGV Corner

The Asset

Site

Program

105 Income Units

The Improvements

Construction & Form

Parking & Bicycle

Shovel-Ready

How It Prices

Density Already Captured

Near-RTI Premium

Supply-Constrained Submarket

Remaining Cost to Build

Estimated Cost to Build & Developer Profit

Recommended List Price

Feasibility Headwinds a Buyer Should Underwrite

Elevated Construction Financing Cost

High Hard-Construction Cost

Limited Loan Proceeds on Refinance After Completion

Not High Resource or QCT / DDA

ADUs Cannot Be Built Until After C of O

Current Development & Land Inventory

Meet the Team