Santa Ana, CA
Multi Housing
The Ask
The client, an emerging developer, had purchased a site that served a Class C office building. The client needed a creative redevelopment/conversion plan that would meet the project investors’ required rate of return.
Overview
At the time of purchase, there was a Class C office building, as well as a small casual dining facility, sitting atop the subject site. The site had convenient access to the freeway, and was in a prime location. However, due to significant wear and tear, as well as termite damage, the office building was near physical obsolescence. The casual dining establishment was also detracting from the site’s potential. Thus, an immediate redevelopment was necessary to maximize the site’s value. Strong lease-up was also crucial here, as well as a site design that would take advantage of the ingress and egress splitting the lot. To support such a design, creative financing and efficient delivery were required. This is where the Quasar team got creative.
Our Solution
Once the non-viability of the existing uses on the site were confirmed, the team began with a detailed market analysis to guide redevelopment efforts. A thorough study of the Santa Ana market fundamentals and demographics, as well as nearby amenities and excellent access to freeways and major arteries, shed light upon the viability and need for a senior housing development on the site. From that point onwards, the Quasar team got to work producing a robust feasibility study for the plan.
The Breakdown:
Physical Feasibility
Confirmed need for redevelopment and a new direction.
Market Analysis
Analyzed demographics, amenities, supply & demand dynamics, and comparables to propose a senior housing project.
Community Outreach
Met with city officials and other stakeholders to confirm need for senior housing to help the senior community age in place.
Legal feasibility
Determined senior living was neither a permitted nor conditional use; confirmed need for variance.
Site plan and project delivery
Proposed and assisted in the development of a bi-phasal project delivery and initial site design that replaced existing uses while adapting to other schematics.
Financing and lease-up
Designed financing solutions to support project delivery, and gave recommendations to procure stabilization.
Financial Feasibility
Generated and analyzed key financial metrics to determine financial viability of the project and confirm whether required rate of return met.
Sensitivity Analysis
Risk management for base-best-worst case scenarios.
Final Recommendation
At Quasar, we firmly believe in aligning development goals with the city’s vision. Thus, in our final recommendation for an active senior living development serving the 55+ population, we certainly provided the client with numbers, return metrics, and market studies that supported this plan and made it viable. But we emphasized the value-add to the community that this project would be, by playing a part in ensuring the City of Santa Ana’s 55+ population could age in place, with complete grace and dignity.