Highest & Best Use — 5 Scenario Analysis

A comprehensive financial feasibility study for 309 Grace Ave, La Habra. Five development scenarios modeled from status quo through maximum density, with ROI projections, income estimates, and risk profiles.

All figures are illustrative projections based on market research and publicly available data. They have not been independently verified. Investors must conduct independent due diligence.

Select a Scenario

Scenario DHigh Upside

SB 9 Lot Split — 2 Parcels + ADUs

Invoke SB 9 to split the 6,560 sq ft lot into two ~3,280 sq ft parcels. Build one primary dwelling + one ADU on each parcel (4 units total).

Development Cost

$810K

Gross Value

$2.40M

Net Profit

$440K

Projected ROI

38.3%

Annual Income

$144K

Total Units

Timeline

18–24 months

Risk Score

7/10

Financial Breakdown

SB 9 lot split: ministerial approval, no discretionary review
2 new SFRs (1,200 sq ft each): $480,000–$600,000 construction
2 ADUs (800 sq ft each): $240,000–$300,000 construction
Total construction: $720,000–$900,000
Combined gross value: $2.2M–$2.6M (4 units at $550K–$650K each)

Advantages

Maximum density by right
4 sellable or rentable units
Strongest ROI scenario

Considerations

Highest capital requirement
Longest timeline
Requires experienced developer

ROI Comparison by Scenario

Net Profit vs. Development Cost

Net Profit
Dev Cost

Full Scenario Comparison

Scenario	Dev Cost	Gross Value	Net Profit	ROI	Annual Income	Units	Timeline
ARetain & Rent	$0	$1.23M	$22K	1.9%	$36K	1	Immediate
BADU Addition	$200K	$1.55M	$150K	13%	$60K	2	6–9 months
CRebuild SFR+ADU	$675K	$1.85M	$225K	19.6%	$72K	2	12–18 months
DSB 9 Lot Split	$810K	$2.40M	$440K	38.3%	$144K	4	18–24 months
E6-Unit Max	$1.00M	$3.00M	$725K	62.6%	$180K	6	24–36 months

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