Earlier this year, devastating wildfires tore through Pacific Palisades, destroying roughly 5,500 homes along with numerous apartments, offices, and retail properties. In response, LA Mayor Karen Bass signed an executive order aimed at speeding up the rebuilding of commercial properties. While the order targets businesses, multi-family investors in the area may see indirect opportunities emerging from these recovery efforts.
What the Executive Order Means
The executive order introduces measures designed to accelerate redevelopment. Commercial projects that adhere to the neighborhood’s specific plan can bypass discretionary reviews and proceed through a streamlined administrative process. Developers also benefit from a five-year extension on land-use entitlements, giving them more time to plan and execute rebuilding projects. Interior improvements can be self-certified, allowing partial build-outs to move forward more quickly. Additionally, bond requirements are waived for small-scale repairs outside geohazard zones, easing upfront financial burdens.
Although these provisions focus on commercial properties, multi-family investors could benefit from the accelerated recovery. Reopening retail and office spaces may increase demand for nearby residential units, while faster revitalization of commercial corridors can support overall neighborhood stability and potential asset appreciation. The city’s willingness to expedite permitting and extend entitlements also signals a more responsive regulatory environment for future multi-family redevelopment or conversions.
Signs of Progress
Momentum is already visible on the ground. Nearly 2,000 permit applications have been submitted, with more than 850 approved and just over 900 still under review, according to CoStar. Notably, CVS Pharmacy was among the first major retailers to reopen, marking a milestone in the district’s recovery and signaling that commercial activity is returning steadily.
Bottom Line for Multi-Family Investors
Multi-family investors should view the executive order as a signal to monitor recovery activity closely. Early positioning near revitalized commercial corridors can capture potential upside as amenities and services return. Mixed-use properties that combine residential with retail or office components may hold particular appeal. At the same time, careful underwriting remains essential, as rebuilding can drive up labor and material costs. Overall, the executive order creates both a tangible path toward neighborhood recovery and a strategic opportunity for investors ready to align with the market’s redevelopment trajectory.
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