Doesn't need to be specific to Los Angeles, but for those who are on the development side (emphasis on residential rentals or for-sale), is there a general timeline/blueprint for the development process. Specifically prior to a shovel going into the dirt.
Also, for those currently working development projects in LA, what is the general view of Measure JJJ and this Neighborhood Integrity Initiative on the ballot for March? If a parcel of land isn't current zoned/entitled for the intended use, is the risk too great right now for a developer looking to purchase land unentitled given the potential they may be frozen out from developing something that actually makes economic sense?
You may already know but in CA don't forget to include the entitlement phase, specifically CEQA in addition to actual building permit plan check period. Depending on if your chasing a MND or full EIR, this can be 4 months - 2 years. Would be specific to the project impact and location.
Hah, I know a company in SF that bought land for $70 million, spent 5 YEARS going through entitlements, and then sold it once entitled for $170 million. I'm not sure which number is more absurd, the $100 million in appreciation or the fact that it took 5 years to get a damn piece of land entitled.
Well assume 2 months of site DD. As others have mentioned, Entitlements are the big IF and vary by market/what you are trying to do (rezone, variance, special exception, etc.).
Here in Philadelphia, rezoning can take 3 months to 3 years. It all depends on the stakeholders (residential groups, neighborhood associations, design review boards) involved and how willing they are to budge on passing it through.
As entitlements wrap up, we typically get deeper into design and constructiong budgeting. We schedule 2 months to find a lender/equity then another 2 months for their DD.
It's hard to break down because everything overlaps and it all varies by project. But I'd say you have to start by understanding yLa's entitlement process, when each committee/board/organization meets, when deadlines are, how long review processes take, etc. etc.
As others have mentioned, the entitlement period is the biggest schedule buster. Here's a rough outline of various pre-dev milestones.
Site Due Diligence: 2 months Concept Design, Entitlement Prep: 2 months (assumes schematic design about 60% complete for entitlement submission) Entitlement: 6 months-2 years (huge range based on local jurisdiction) Complete Design: 9 months (assumes 40% SD, 100% DD and CD level drawings--varies based on complexity of project) Bid and Select Contractor: 1.5 months Contractor Notice to Proceed: 1 month
Thank you. At the risk of sounding ignorant, SD = schematic design, CD = construction drawings, DD = due diligence?
So when a broker lists a fully entitled development site for sale, generally is the design process also complete or would buyer need to assume that additional ~ 9 month period to actually design the project? Or can it go either way?
I know that in many locales (maybe all), the design of the project requires approval as well, sometimes even the color scheme of the exterior needs to be approved. At what point in the timeline does that come into play?
DD=design development, the design phase between schematics and construction docs.
Regarding a fully entitled site--it depends. Frequently a developer wants to minimize their cost exposure until entitlement risk is eliminated, and will only design to a level of detail required for entitlement submissions (say, 65% SD). Another reason is your other point, namely that local jurisdictions can dictate a lot of design changes (usually massing, height, exterior materials). It doesn't make sense to push the the design too far during entitlements if you are going to be forced to make major design changes.
The timeline for design input from local authorities is completely based on your local jurisdiction. But, it's pretty unusual to dive into construction documents until entitlements are out of the way. The CD phase could be 5+ months depending on the job.
I'll just throw in - even thought the flyer says its fully entitled - thats usually fine if you plan on building exactly what is already entitled. If you want to make changes, even making the building Smaller or prettier or more functional etc...that can sometimes mean you have to RE entitle the site. How stupid is that? Depends City to City but I have had to go through that in some places
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