2500 Lake Ave represents a rare, investor-ready multifamily rebuild opportunity in the heart of Altadena, California. The 7,840 SF parcel — completely destroyed in the January 2025 Eaton Fire — carries confirmed like-for-like rebuild rights for its pre-fire 7-unit residential program, plus meaningful upside through ADU additions and density bonus layering under state law.
The property sits on Lake Avenue, Altadena's primary commercial corridor and the area's most active redevelopment spine. With 70%+ of Altadena's rental stock wiped out by the Eaton Fire, multifamily rebuild sites along transit-accessible corridors are exceptionally scarce — and demand from developers, owner-operators, and institutional investors is high.
Critically, newly rebuilt multifamily units in the Eaton Fire zone are exempt from the County's Rent Stabilization Ordinance (RSO), enabling a developer to underwrite market-rate rents from day one — a structural advantage unavailable on conventional acquisition deals in this submarket.
| Field | Detail |
|---|---|
| Address | 2500 Lake Ave, Altadena, CA 91001 |
| APN | 5845-002-014 |
| County | Los Angeles (Unincorporated) |
| Zoning | LCC3 — Limited Commercial |
| Legal Description | Tract No. 7832, Lots 21, 22 & 23 and N 24.886 ft of Lot 24 |
| Lot Size | 7,840 SF (0.18 acres) |
| Pre-Fire Building SF | 5,568 SF |
| Pre-Fire Units | 7 Residential Units |
| Year Built | 1953 (destroyed 2025) |
| Fire Status | Total Loss — Eaton Fire, January 2025 |
| Flood Zone | Zone B/X (Moderate, 100–500yr) |
| Current Condition | Cleared / Debris removal completed ⚑ |
| Pre-Fire Program | Detail |
|---|---|
| Total Units | 7 |
| Building SF | 5,568 SF |
| Avg Unit SF | ~795 SF / unit |
| Stories | 2 |
| Parking | To be verified |
| Unit Mix | To be verified (est. 1–2 BR) |
| Pre-Fire Rent Roll | To be obtained from owner |
The January 2025 Eaton Fire destroyed approximately 9,400+ structures in Altadena, including an estimated 618+ multifamily units — likely a significant undercount. Against this backdrop of massive supply destruction, LA County has established a streamlined rebuild framework that makes fire-site acquisitions uniquely compelling.
For a buyer of 2500 Lake Ave, the rebuild rights create a ministerial path to 7 units (extendable to 7+ via ADUs and Density Bonus) that bypasses the discretionary entitlement process that has historically made ground-up multifamily development in unincorporated Altadena slow and uncertain.
| Pathway | Units | Entitlement | Est. Timeline | RSO Exempt? |
|---|---|---|---|---|
| Like-for-Like Rebuild (Base) Recommended | 7 | Ministerial / No Hearing | ~6–12 months | Yes |
| Like-for-Like + ADUs | 9–10 | Ministerial | ~9–15 months | Yes |
| Like-for-Like + ADUs + Density Bonus | 10–12+ | Mostly Ministerial ⚑ | ~12–18 months | Yes |
| Ground-Up New Development (LCC3) | TBD | Discretionary | 18–36+ months | Yes |
Altadena is an unincorporated community at the base of the San Gabriel Mountains in northeast Los Angeles County, directly adjacent to Pasadena. Pre-fire, the area was characterized by a tight rental market, strong demographics, and limited new housing supply — a combination that made multifamily assets in the submarket highly sought after. The Eaton Fire has dramatically compressed the supply side while leaving demand intact.
| Market Indicator | Data |
|---|---|
| Submarket | Altadena / Pasadena Corridor |
| 1-Mile Population | 15,872 |
| Median HH Income (1 mi) | $141,758 |
| Median Home Value (1 mi) | $1,093,093 |
| Avg Household Size | 2.60 |
| Structures Destroyed (Eaton) | 9,400+ |
| Multifamily Units Lost | 618+ (est. undercount) |
| Rental Stock in Fire Perimeter | 1,500+ units (70% of total) |
The baseline rebuild program assumes reconstruction of the 7 pre-fire units at the confirmed like-for-like entitlement basis. The program below models stabilized income at current Altadena market rents, accounting for the RSO exemption applicable to newly constructed fire-rebuild units.
Unit counts and mix shown below reflect the pre-fire program. Buyers should confirm ADU eligibility and Density Bonus potential with LA County Planning to quantify upside beyond the base 7-unit program.
| Unit Type | Qty | Est. Rent/Mo | Ann. Gross |
|---|---|---|---|
| 1 BR / 1 BA (~650 SF) | 4 | $2,400 ⚑ | $115,200 |
| 2 BR / 1 BA (~950 SF) | 3 | $3,000 ⚑ | $108,000 |
| Gross Scheduled Income | 7 | — | $223,200 |
| Vacancy & Credit Loss (5%) | ($11,160) | ||
| Effective Gross Income | $212,040 | ||
| Operating Expenses (~35%) | ($74,214) | ||
| Net Operating Income | $137,826 |
| Exit Cap Rate | Implied Value | $/Unit |
|---|---|---|
| 4.00% | $3,445,650 | $492,236 |
| 4.25% | $3,242,965 | $463,281 |
| 4.50% | $3,062,800 | $437,543 |
| 4.75% | $2,901,600 | $414,514 |
| 5.00% | $2,756,520 | $393,789 |
The comparables below provide land value context for fire-affected multifamily sites and development land in the Altadena / Pasadena corridor. Buyer is encouraged to conduct independent comp verification through title records and broker network.
| # | Address | Sale Date | Lot SF | Units | Sale Price | $/Land SF | $/Unit | Notes |
|---|---|---|---|---|---|---|---|---|
| 1 | — To be added — | — | — | — | — | — | — | — |
| 2 | — To be added — | — | — | — | — | — | — | — |
| 3 | — To be added — | — | — | — | — | — | — | — |
The land residual analysis derives supportable land value by working backward from a stabilized finished-property value, deducting all-in development costs and a required developer profit margin. The result establishes the ceiling price a developer can pay for the land while achieving target returns.
| Cost Component | Estimate | Basis |
|---|---|---|
| Hard Construction (7 units × ~795 SF) | ⚑ TBD | $/SF rebuild |
| Debris Removal / Site Prep | ⚑ TBD | If not completed |
| Soft Costs (Arch, Eng, Permits ~15%) | ⚑ TBD | % of hard |
| Financing / Carry (~8% of total, 18 mo) | ⚑ TBD | Construction loan |
| Total Development Cost | ⚑ TBD |
| Developer Profit | Residual Land Value | $/Land SF |
|---|---|---|
| 15% | ⚑ Pending cost inputs | — |
| 20% (Base) | ⚑ Pending cost inputs | — |
| 25% | ⚑ Pending cost inputs | — |
The recommended list price will be set once land comps and the development cost build-up are finalized. Based on available market data and the confirmed like-for-like rebuild rights, we anticipate a trade range consistent with comparable Altadena fire sites with multifamily entitlements.