This summer, the Construction Authority awarded the Kiewit Parsons Joint Venture, a $486 million dollar contract to complete the Pasadena to Azusa Gold Line extension project. Phase 2A is slated to be completed in early 2015, with service running from Downtown Los Angeles to Azusa. The project will create new Gold Line stations in Arcadia, Monrovia, Duarte, Irwindale, West Azusa and East Azusa. Each city along the Gold Line intends to utilize these new stations to enhance residential, retail and mixed-use developments within walking distance of each station.
The goal of these Transit Oriented Developments (TOD) is to increase the use of public transportation, decrease the effects of sprawl and create a more sustainable way of living. TODs generally extend out a quarter to a half-mile from a transit station. The existing development around many of the proposed stations lack density and will allow for the acquisition and entitlement of many parcels for a more dense uses.
Why is this important?
The San Gabriel Valley is one of the strongest real estate sub-markets in all of California. The area boasts several examples of successful projects built during the last few years that have exceeded sales expectations. This includes Pulte Homes’s Rosecrest Lane project that averaged sales over $800,000 per home in Pasadena in 2010-2011.
Recent land acquisitions, including a 5.4-acre industrial site in Monrovia that is now planned for mixed-use, show the propensity of buyers and developers for both traditional and transit-oriented areas of the San Gabriel Valley. With densities expected to double in close proximity to a number of these stations, an estimated increase of 100 to 300 residential units will be needed to satisfy renter and buyer demand at each station.
The Los Angeles Infill team is closely monitoring the Gold Line extension, and can answer any questions builders and investors may have in regards to preparing for the “gold rush.” For more news and events related to the Gold Line, check out www.foothillextension.org.
Source: Chris Gomez-Ortigoza, Marketing Consultant, (626) 376-9840 x14