ADU development · California

Same land. More housing.

Axonometric drawing of a rental portfolio with new ADUs highlighted in blue and labelled by type

01 — The opportunity

Spend capex where it adds the most value: more units.

ADUs are one of the fastest-growing capex investments in California. New units can be created from garages, storage rooms, and unused leasing offices, or built new in excess parking — without buying another property, and usually at a better cap rate than the asset you already own.

Garage conversion

Tuck-under and attached garage rows become rental units. Fastest path, lowest cost per unit.

Interior conversion

Storage, boiler rooms, and unused leasing offices legalized as dwelling units.

New build

Detached units and duplexes placed in surplus parking and open space.

Second story

Added units over existing garages and single-story wings where height allows.

Rental property with three garage-conversion ADUs outlined in blue

Rental properties with storage-conversion and duplex new-build ADUs outlined in blue

02 — What pencils

Compare development scenarios before you commit a dollar.

One property, three ways to add units. We model each against rent comps, hard and soft costs, fees, and exit value so the decision is arithmetic rather than instinct.

Axonometric of a rental property with the leasing office converted to one ADU

Convert the unused leasing office

Units	1
Rental rate	$1.9k / unit
Cost estimate	$92k / unit
Entry cap rate	25%
Value added	$380k

Axonometric of a rental property with two tuck-under garages converted to ADUs

Convert tuck-under garages

Units	2
Rental rate	$2.4k / unit
Cost estimate	$125k / unit
Entry cap rate	23%
Value added	$960k

Axonometric of a rental property with a new duplex built in excess parking

Build a duplex in excess parking

Units	2
Rental rate	$3.2k / unit
Cost estimate	$202k / unit
Entry cap rate	19%
Value added	$1.28m

Illustrative scenarios at a 6% exit cap rate.