Executive Summary
Marcus & Millichap is pleased to present 18213 Prairie Avenue — a ±0.47-acre infill redevelopment opportunity along the Prairie Avenue commercial corridor in North Torrance. The site is positioned for a 10-unit for-sale townhome subdivision via the SB 1123 Starter Home Revitalization Act ministerial pathway, which became effective July 1, 2025.
Because the parcel sits within the City of Torrance's Housing Corridor Overlay (HCO — Prairie Ave Sub-Area 1), multifamily residential is an allowed use on the C-2 base zone. Per HCD's January 28, 2025 Letter of Technical Assistance, any zone that permits multifamily as a principal or conditional use qualifies under Gov. Code § 66499.41 — meaning this commercially-zoned parcel is eligible for SB 1123's streamlined, ministerial 10-lot / 10-unit subdivision process with no discretionary review and a 60-day approval clock.
Subject Property
18213 Prairie Avenue is an infill redevelopment opportunity along the Prairie Avenue commercial corridor in North Torrance. The ±0.47-acre parcel (APN 4084-009-019) is currently improved with a one-story ±5,653 SF private school building (Playhouse / ABC Playhouse, constructed circa 1972), but is fundamentally positioned as a small-lot for-sale townhome development site in a walkable, transit-served South Bay neighborhood.
±0.47 acres
General Commercial
Prairie Avenue Sub-Area 1
±5,653 SF / 1 story / 1972
2–3 stories feasible
Property Highlights
- Right-sized SB 1123 site — ±20,600 SF is well under the 5-acre cap for multifamily-zoned parcels; comfortably accommodates 10 fee-simple townhome lots above the 600 SF minimum.
- Housing Corridor Overlay (HCO) advantage — objective design standards and a by-right path to multifamily, the legal trigger that brings SB 1123 into play on a C-2 parcel.
- "Very Walkable" Prairie / 182nd / Artesia node — nearby retail, services, parks, schools, and multiple bus lines — an atypical walkability profile for low-rise South Bay corridors.
- Direct access to the 405 Freeway and South Bay employment cores: Northrop Grumman, Boeing, Honda, SpaceX, Nissan, Mattel, Skechers, and Kaiser Permanente.
- Robust demographics — 598,555 population, $129,999 average household income, and 41% renter-occupied housing within a 5-mile radius.
- Existing private school can support interim income or vacant delivery — flexibility to suit the buyer's timeline.
SB 1123 — Starter Home Revitalization Act
The Starter Home Revitalization Act, codified by SB 684 (2023) and substantially amended by SB 1123 (Chapter 294, Stats. 2024, effective July 1, 2025), establishes a ministerial approval process for subdivisions of 10 or fewer residential lots and 10 or fewer for-sale housing units on urban lots under 5 acres that allow multifamily residential.
Why 18213 Prairie Qualifies
1. Multifamily is an allowed use. The HCO — Prairie Avenue Sub-Area 1 permits multifamily residential on the C-2 base zone. Per HCD's January 28, 2025 Letter of Technical Assistance to the City of Hayward, "zoned for" means any zone that allows for multifamily residential development as a principally or conditionally permitted land use. The development does not have to be in a zone exclusively designated as a multifamily zone."
2. Lot is under the 5-acre threshold. ±0.47 acres on a multifamily-allowed lot — well within SB 1123's eligibility envelope.
3. Surrounded by qualified urban uses. The parcel sits along an established commercial corridor with continuous urbanization to the north, south, east, and west.
4. Ministerial — no discretionary review. Eligible applications are not subject to public hearing and must be approved or denied within 60 days following a completed submittal.
SB 1123 Project Envelope
| Parameter | SB 1123 Requirement | 18213 Prairie Yield |
|---|---|---|
| Max lots / units | 10 lots & 10 units (excl. ADUs/JADUs) | 10 fee-simple townhome lots |
| Min lot size (multifamily zone) | 600 SF per lot | ±2,060 SF avg lot — well above minimum |
| Ownership structure | Fee simple OR condo / co-op / CLT / TIC | Fee simple small-lot subdivision |
| Avg unit floor area cap | ≤ 1,750 net habitable SF per unit | 1,750 SF / unit (at SB 1123 cap, 3BR / 2.5BA) |
| Min density (non-Housing-Element) | Greater of 66% of zoned max OR 20 du/ac | 20 du/ac × 0.47 ac = 9.4 → 10 units |
| FAR (SB 478 minimum) | ≥ 1.0–1.25 for 3–10 units | Conservative ~1.0 yields ~20,600 SF buildable |
| Approval timeline | 60 days after complete submittal | Ministerial — no CUP, no hearing |
Land Sale Comparables — Map & Analytics
Four Torrance-area development land trades within ~5 miles of the subject. Comps are normalized on two metrics: PPSF (price per lot SF) and PPBU (price per buildable unit) — based on each parcel's documented or feasible townhome yield. The closed-comp range frames where capital is pricing risk on this product type and city.
| Map | Address | Lot SF | Sale Price | PPSF $ / lot SF | Yield | PPBU $ / buildable unit | COE |
|---|---|---|---|---|---|---|---|
| ★ | 18213 Prairie Ave |
20,600 | $2,500,000 | $121.36 | 10 units |
$250,000 | List |
| A | 1639 W 228th St |
14,403 | $2,200,000 | $152.74 | ~7 units |
$314,286 | 9/18/2025 |
| B | 4903 Torrance Blvd |
12,407 | $1,700,000 | $137.01 | ~6 units |
$283,333 | 4/10/2025 |
| C | 3828 W 226th St |
19,646 | $1,700,000 | $86.34 | 10 units |
$170,000 | 12/2/2024 |
| D | 1610 W 218th St |
18,003 | $1,975,000 | $109.70 | 11 + 11 ADU |
$179,545 | 3/25/2022 |
| AVERAGES (comps) | 16,113 | $1,893,750 | $121.45 | — | $236,791 | — |
Full LAAA Land & Development Pipeline
The LA Apartment Advisors team currently has 13 land & development deals on-market or in escrow representing 1,416 buildable units and $65M+ in aggregate list volume. Each represents a different scale, geography, and entitlement profile — useful context for buyers comparing 18213 Prairie against other active opportunities.
Available Listings
| Property | Neighborhood | Type | Lot SF | Plans | Zoning | QOZ | BU | Price |
|---|---|---|---|---|---|---|---|---|
| 3219–3249 Overland Ave | Palms (LA) | Apartments | 39,666 | Unentitled | RD3-1 | — | 100 | $11,995,000 |
| 5151 E Arrow Hwy | Montclair | Mixed Use | 260,271 | Unentitled | Mixed Use | — | 300 | $10,500,000 |
| 5511 Ethel Ave | Sherman Oaks | Apartments | 41,810 | Entitled | LAR1 | — | 199 | $9,000,000 |
| 12335 Osborne Pl | Pacoima | Apartments | 46,035 | RTI | (Q) RD1.5-1-CUGU | QOZ | 293 | $4,250,000 |
| 2338–2354 Lake Shore Ave | Silver Lake | Homes | 33,388 | RTI | LAR1 | — | 4 | $2,800,000 |
| 10898 Olinda St | Sun Valley | Apartments | 30,347 | RTI | R1-1-CUGU | — | 78 | $2,500,000 |
| 3837 College Ave | Culver City | Apartments | 7,500 | Unentitled | CCR4 | — | 21 | $2,000,000 |
| 5321 Riverton Ave | North Hollywood | Apartments | 10,799 | Entitled | LAR3 | QOZ | 27 | $2,000,000 |
| 6901 Woodman Ave | Van Nuys | Apartments | 10,005 | RTI | LAR3 | — | 55 | $1,550,000 |
In Escrow
| Property | Neighborhood | Type | Lot SF | Plans | Zoning | QOZ | BU | Price |
|---|---|---|---|---|---|---|---|---|
| 1120–1164 W Sunset Blvd | Los Angeles | Apartments | 45,398 | Unentitled | C2-1VL | — | 200 | $9,000,000 |
| 4623–4631 Beverly Blvd | Greater Wilshire | Apartments | 21,000 | Unentitled | C2 | — | 113 | $5,250,000 |
| 10425 Independence Ave | Chatsworth | Homes | 44,954 | RTI | RA-1 | — | 8 | $2,500,000 |
| 1431 N Vista St | West Hollywood | Apartments | 6,528 | Unentitled | R3-1 | — | 18 | $1,700,000 |
Townhome / Condo Resale Comparables — New Construction Only
Comp set restricted to townhome and condo product built in the last 10 years (2015 or newer). This isolates true new-construction pricing for the South Bay merchant builder underwriting and excludes older HOA stock that trades at structural discounts. Two on-corridor projects on Prairie Avenue itself and three additional 90504/90502 communities anchor the set.
On-Corridor Benchmark — North Pointe at 18080 Prairie Ave
One block south of the subject, Anastasi Development Company built and is currently selling 24 fee-simple townhomes on a ±1.0-acre site — a near-identical product profile to what SB 1123 unlocks on 18213 Prairie at roughly half scale.
Anastasi Development
Selling 2026
2BR / 2.5BA
Multiple floor plans
2 rows / central drive
Solar-ready · EV-ready · tankless WH
Status: Construction completed; sales actively in market. List prices range $749,900 (1,057 SF, $710/SF) to $834,999 (1,414 SF unit #102, $590/SF). Pending sales confirm absorption at these strikes.
Why this matters for 18213 Prairie: Anastasi proved the corridor at 24 du/ac with a smaller-footprint 2BR product. Subject's SB 1123 envelope — 10 fee-simple townhomes at 3BR / 1,750 SF spec (the SB 1123 ceiling) — positions a complementary, not competing, product: family-sized homes for buyers priced out of the move-up market who still want this corridor.
| Project / Address | Builder | Year Built | Beds / Baths | Living SF | Price | $/SF | Status |
|---|---|---|---|---|---|---|---|
| 18082 Prairie Ave #108 (North Pointe) |
Anastasi Development | 2025 | 2BR / 2.5BA | 1,057 | $749,900 | $710 | Pending |
| 18082 Prairie Ave #102 (North Pointe) |
Anastasi Development | 2025 | 2BR / 2.5BA | 1,414 | $834,999 | $590 | Active |
| 2706 W 182nd St (Marbella) |
Lennar | 2024 | 3BR / 2.5BA | 1,724 | $934,990 | $542 | Active |
| 2706 W 182nd St (Marbella — Plan 4) |
Lennar | 2024 | 4BR | 2,252 | ~$1,049,000 | ~$466 | Active |
| 17510 Van Ness Ave #5 |
Boutique infill | 2018 | 3BR / 3BA | 1,858 | $1,030,000 | $554 | Closed 6/2025 |
| 1010 W 223rd St #2 (Welkin 223) |
Welkin Homes | 2025 | 3BR / 3BA | 1,924 | $939,990 | $488 | Active |
| 22304 Sage Ct (Sage Walk — The Azura) |
Olson Homes | 2024 | 4BR / 3.5BA | 1,610 | $842,990 | $524 | Active |
| AVERAGES — New Construction Comps | 2024 | 1,634 | $911,696 | $553 |
Townhome / Condo Rental Comparables — New & Recent Construction
If a developer elects to hold and rent rather than sell, 3-bedroom townhome rental product in the Torrance trade area commands $4,100–$4,950/month. Comp set restricted to recently-built or recently-leased product, matching the new-construction quality of the planned subject project. Older 1980s-90s rental stock is excluded since BTR underwriting must benchmark to fresh-product rents.
| Address | Community / Notes | Beds / Baths | Living SF | Asking Rent | $/SF/Mo |
|---|---|---|---|---|---|
| 17215 Patronella Ave |
Recent townhome · balcony, patio, fireplace | 3BR / 3BA | ~1,650 | $4,100/mo | ~$2.48 |
| 2800 Plaza Del Amo |
Gated · pool, clubhouse, fireplace | 3BR / 3BA | ~1,700 | $4,200/mo | ~$2.47 |
| 4421 Emerald St |
3BR townhome, lease-up discount | 3BR / 3BA | ~1,750 | $4,500/mo | ~$2.57 |
| 3650 Newton St |
4BR townhome, modern build | 4BR / 2.5BA | ~1,900 | $4,950/mo | ~$2.61 |
| AVERAGES — Recent Construction 3-4BR TH Rentals | 1,750 | $4,438/mo | $2.53 |
10-Unit 3BR / 2.5BA Townhome Underwriting
Both exit strategies modeled at the same product spec: 10 fee-simple townhomes, each 3 bedrooms / 2.5 baths, ±1,750 SF — sized to the SB 1123 floorspace ceiling for maximum unit value. Pricing pulled directly from the comp sets above — new-construction TH resale benchmarks for the for-sale exit, recent-construction 3-4BR rentals for the build-to-rent exit.
(at SB 1123 cap)
Construction Cost Stack — 10 × 1,750 SF Fee-Simple Townhomes
Industry-standard underwriting for small-lot SB 1123 / SB 684 product in the South Bay. Hard cost benchmark of $275/SF reflects 2-3 story wood-frame with surface parking (no podium / no elevator) for fee-simple townhomes. Soft costs at 10% of hard. Total turn-key cost stack ex-land works to ~$376/habitable SF, or ~$658K per door before land.
| Cost Bucket | Assumption | 10-Unit Total | Per Unit |
|---|---|---|---|
| Hard Cost (construction) | $275/SF × 17,500 habitable SF | $4,812,500 | $481,250 |
| Soft Cost (design, fees, permits) | 10% of hard | $481,250 | $48,125 |
| Demolition (existing school) | ±5,653 SF × $14/SF | $80,000 | $8,000 |
| Off-Site / Site Work / Utilities | Allowance | $250,000 | $25,000 |
| Construction Financing & Carry | ~9% of hard+soft, 18-mo build | $715,000 | $71,500 |
| Contingency | 5% of hard | $240,625 | $24,063 |
| Total Construction Cost (ex-land) | ~$376 / habitable SF | $6,579,375 | $657,938 |
FOR-SALE EXIT — Full Project P&L
Pricing benchmarked to the new-construction comp set above (avg $553/SF, range $466–$710). Direct analogs: Marbella by Lennar at $542/SF (3BR/1,724 SF, same ZIP — near-identical product to subject) and North Pointe at $590-$710/SF (Anastasi, 1 block south).
BUILD-TO-RENT EXIT — Stabilized Yield-on-Cost
Rents benchmarked to the recent-construction 3-4BR townhome comp set above (avg $2.53/SF/mo, range $2.47–$2.61). New-construction premium typically commands 5–10% above existing stock.
Side-by-Side — Base Case Summary
| For-Sale Exit | Build-to-Rent Exit | |
|---|---|---|
| Revenue / NOI | $10.50M gross sellout | $381K stabilized NOI |
| Land Basis | $2.50M | $2.50M |
| Construction Cost | $6.58M ($376/SF all-in) | $6.58M ($376/SF all-in) |
| Total Project Cost | $9.08M | $9.08M |
| Net to developer (Base) | $9.98M sellout vs $9.08M TPC = +$896K profit | $8.96M @ 4.25% cap vs $9.08M TPC = ($123K) $9.52M @ 4.00% cap vs $9.08M TPC = +$437K |
| Break-even pricing | $546/SF resale · $956K/unit | 4.21% cap rate — at parity |
| Time to capital recovery | ~24–30 mo from close | Indefinite hold |
Strategic takeaway: At the SB 1123 ceiling of 1,750 SF / unit and $2.5M land basis, both exits are profitable. For-sale delivers ~$896K of developer profit at base case ($600/SF), scaling to $1.7M+ at aggressive pricing. BTR delivers 4.19% YoC — inside the market cap-rate band — with $437K surplus at a 4.0% cap exit. The $250K/door land basis sits inside South Bay merchant-builder underwriting and below the active LAAA development comparable inventory. Sizing to the SB 1123 cap is the value-maximizing program.
Market Overview — North Torrance / South Bay
North Torrance sits inside one of the most supply-constrained, high-barrier coastal submarkets in Los Angeles County. The Prairie / 182nd / Artesia node is a "Very Walkable" trade area with bus service, schools, retail, and parks within a quarter-mile.
(5-mile)
Income (5-mi)
Home Price
$/SF
Demand Drivers
- Major employers within ~5 miles: Nissan North America (10,350), Raytheon (10,000), Episource (6,600), Boeing Satellite Systems (5,112), SpaceX (4,383), Skechers (4,000), Nike (3,320), Honda, Mattel, Torrance Memorial.
- Regional access: Direct 405 Freeway connectivity north to LAX / Westside and south to the Port of LA / Long Beach.
- Schools & lifestyle: Award-winning Torrance Unified School District, multiple parks along the Prairie corridor, beach access within 4 miles.
- 2028 Olympics catalyst for South Bay infrastructure investment and tourism.
Why North Torrance For-Sale Townhomes Now
- The HCO is brand-new policy — Torrance adopted the overlay to encourage housing on commercial corridors, putting this site on the right side of city priorities.
- SB 1123's 7/1/2025 effective date is fresh — few sites have transacted yet with this entitlement framework explicitly underwritten, creating a clean first-mover opportunity.
- South Bay for-sale demand remains structural — 90504 home prices held above $900K through 2026 despite rate headwinds.
Listing Team
This offering is co-listed by the LA Apartment Advisors (LAAA) team and the Agnew | Serling Group at Marcus & Millichap — two of Southern California's most active investment sales practices.
LAAA Team — Track Record
Per Year
(Trailing 3 Years)
Agnew | Serling Group — Track Record
Co-founder of the LAAA Team at Marcus & Millichap. Born in Romania and raised in the San Fernando Valley, Filip began his M&M career in 2011 after studying Finance at San Diego State University. He and the LAAA Team have closed over $1.4 billion in multifamily and land transactions across Los Angeles.
Co-founder of the LAAA Team at Marcus & Millichap. UC Santa Barbara graduate in Economics and former Division I golfer (Big West Golfer of the Year, UCSB Male Athlete of the Year). Glen launched at M&M in 2014 and was named SFV Business Journal Rookie of the Year by 2016. He has closed 450+ transactions and $1.4B in volume across LA and Ventura / Santa Barbara counties.
Managing Director at Marcus & Millichap and co-founder of the Agnew | Serling Group, based in the firm's Encino office. Since joining in 2014, Ryan has cultivated long-standing owner relationships across Los Angeles County in office, industrial, retail, and land / development. He graduated with honors from Ithaca College and was promoted to Managing Director Investments in 2025.