BIG BOX HOUSING: Housing Strategies for America's Big Boxes

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BIGBOX HOUSING BIGBOX HOUSING BIGBOX HOUSING BIGBOX HOUSING PLAYBOOK BIG BOX HOUSING STRATEGIES FOR AMERICA’S BIG BOXES Instructor: Dan D’Oca STU 1501: The Future of Housing in Los Angeles T R Radhakrishnan Master of Architecture in Urban Design ‘23 Harvard University Graduate School of Design
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source: RODNAE Productions
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Harvard University Graduate School of Design

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PREMISE

Los Angeles, like other cities in the United States today, does not build enough housing to meet demand, which has contributed to what is perhaps the nation’s worst affordable housing problem. In a frantic effort to alleviate this housing shortfall, California state housing officials recently tasked Los Angeles with an apparently impossible task: zone for 255,000 additional homes or forfeit billions of dollars in federal funding for affordable housing. For housing advocates in Los Angeles, this daunting challenge presents an opportunity to radically reimagine how the city houses its residents: given how densely populated the city is, adding so many new homes will require the design of daring new housing typologies, as well as visionary thinking regarding site-selection, implementation, and financing.

ACKNOWLEDGMENTS

This proposal was created for the Fall 2022 Future of Housing Los Angeles studio at Harvard GSD. The semester-long project was directed by professor Dan D’Oca, for whom I am grateful. I would also like to express my appreciation to the Joint Center for Housing Studies at Harvard University, whose generous grant made the studio feasible. In addition, I would like to thank the Los Angeles stakeholders we met on our site visit and my peers for their informative remarks and suggestions.

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7 CONTENTS XL. IDEA L. SYSTEM M. STRATEGY S. IMAGINATION XS. STORIES
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XL IDEA

WHAT IS A BIG BOX?

A big-box, which dates back to the 1960s, is a physically large retail institution that is typically 50,000 square feet or larger on a site that is 8 to 12 acres, and it is typically a part of a chain of stores or light industries. By extension, the phrase can also refer to the business that runs the store.

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source: strongtowns
10 6600 BIG BOXES As of 2021 source: strongtowns HOW BIG ARE ALL BIG BOXES?

25 Sqft per person

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that is
12 BIG BOX USES Automobiles Building Materials E-Commerce Food and Beverage General Retail and Wholesale Medical Third Party Logistics Undisclosed source: CBRE 2021
13 Vacancy Rate 2009 14.1% 0% 2.5% 5% 7.5% 10% 12.5% 15% 17.5% 11.9 8.9% 7.9% 7.4% 7.1% 7% 6.9% 6.9% 7% 8.5% 8.6% 5.3% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 BIG BOX VACANCY RATE Vacancy rate 2021, source: www.statista.com

WHO SAID

WHAT ABOUT BIG BOX FUTURE?

“At least 10 percent of existing big box real estate could be converted to housing. The building is already there, we can leave the density where it is and create affordable housing.”

“There has always been an incentive to chase retail and a disincentive to build housing.”

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“To undo one of these complexes, big box and parking, is a multimillion dollar proposition.”

- Alan Mallach (Center for Community progress)

- Shana Bonstin (Los Angeles City Planning, Deputy Director of Community Planning)

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“Housing is really about providing options”
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17 BUILD HOUSING _________________ _________ USING ___________ ON/IN/AROUND/INSTEAD OF BIG BOXES FINANCE HACKS A NEW HOUSING TYPOLOGY FOR LA
18 L SYSTEM

BIG BOX IN LOS ANGELES

The State of California defines big box retail as a “store of greater than 75,000 feet of gross buildable area and roughly 40 feet in height or lesser.”

Market 1. Los Angeles County 2. Northern/Central NJ

Empire

First year Rent psf/yr $14.92 $11.00 $9.04 $8.46 $8.37 $7.87 $7.35 $7.20 $7.07 $5.88 Source: CBRE 2021

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3. Inland
4. Mexico City 5. Toronto 6. Puget Sound 7. Montreal 8. Central Valley, CA 9. South NJ 10 Phoenix
24 MILLION SQUARE
FEET
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Skidrow Hollywood North hills east
University Park Chatsworth Central Alameda BIG BOX ATLAS Chinatown Valley Glen Athens
22 16 MILLION SQUARE
FEET
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Skidrow Hollywood North hills east
University Park Chatsworth Central Alameda BIG BOX NEAR TRANSIT AND SCHOOL Chinatown Valley Glen Athens
? 24 ADAPTIVE REUSE ORDINANCE TRANSIT ORIENTED COMMUNTIES AIR RIGHTS DENSITY BONUS

HOW TO OVERCOME ZONING ISSUE?

SENATE BILL 6, 2022

This bill would permit the development to be proposed for a site zoned for office or retail commercial use and that meets the requirements of the above-described Middle Class Housing Act of 2022.

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26 HOW CAN A NEW HOUSING TYPE ADAPT TO MARKET?
27 2 SYSTEMS FOR 10,000 + NEW HOUSING CLUSTER CORRIDOR SYSTEM 1 SYSTEM 2
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29 SYSTEM
BIG
CLUSTERS
1
BOX
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SYSTEM 2 BIG BOX CORRIDOR
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M STRATEGY

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HOW TO MAKE BIG BOX HOUSING AFFORDABLE?

The idea behind big box housing is to use underutilized, low-density land in cities to build housing, especially in places like LA where there isn’t much open space. The difficulty, however, lies in finding a way to finance the housing that stays away from the conventional, market-driven development approach. Here, four tactics—more accurately, hacks—that have been modified for big boxes and based on successful models employed in neighborhoods with single-family homes and tiny lots are offered.

Modular construction and free plan

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IN LOS ANGELES

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POTENTIAL BIG BOXES
405
35 >75,000 Sqft
36 HOW CAN BIG BOX HOUSING BE NON-ZERO SUM?
37 4 FINANCE MODELS FOR 10,000 + NEW HOUSING COMMUNITY ROOF TRUST FINANCE-IT-TOGETHER ACCESSORY HOUSING UNIT LARGE LOT SUBDIVISION MODEL 1 MODEL 2 MODEL 3 MODEL 4
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COMMUNITY ROOF TRUST (CRT)
MODEL 1

WHAT ABOUT BIG BOX

ROOFS?

Big boxes feature a sizable amount of roof space, and their modular design allows for development on top. Roofs can be leased for an extended period of time to a community-owned non-profit organization, taking into account the financial loss of tearing them down. Since the roof is now unprofitable, it may represent a new market with very low rental costs. The non-profit can build any sort of housing and ancillary amenities and lease them to residents, much like CLTs. In this approach, there is solely long-term leasing; there is no ownership.

SIMILAR MODEL

COMMUNITY LAND TRUST

source: curbed

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40 WHEN TO USE CRT? >75% BUILT LONG-TERM LEASE 70,000-120,000 SITE TYPE OWNERSHIP SITE SCALE
41 LONG-TERM LEASE NON-PROFIT OWNED BY COMMUNITY.
LEASE
BUILD AND
MODEL
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MODEL 2 FINANCE-IT-TOGETHER (FIT)

WHO CAN BARE THE COST?

A new typology of big box housing currently does not exist in the market. Big box owners and other retail stakeholders are therefore relieved of the requirement to make a housing investment. In the suggested scenario, retailers may sell a big box store’s empty space, even a parking spot, to a neighborhood that would then, in a manner similar to the Baugruppen model, approach a bank and an architect to pool resources and turn the space into homes for the neighborhood’s residents.

SIMILAR

BAUGRUPPEN

MODEL source: shareable

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44 WHEN TO USE FIT? 75-50% BUILT INDEPENDENTLY OWNED 120,000-250,000 SITE TYPE OWNERSHIP SITE SCALE
45 VACANT PORTION OF BIG BOX FOR SALE AND DEVELOPMENT VACANT PARKING SPACES FOR SALE AND DEVELOPMENT
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3 ACCESSORY HOUSING UNIT (AHU)
MODEL

WHERE CAN HOUSING ATTACH?

How housing can be built, or more accurately attached, is another challenge, particularly in a big box that generates cash flow. Most larger boxes feature a lot of parking spaces, empty space, or even roofs that aren’t being used. Here, auxiliary housing units are proposed to temporarily transform a portion into housing that is either attached, detached, built within, etc., similar to accessory dwelling units at the scale of the single family home. The AHU model offers developers and non-profit organizations the chance to establish transitional housing or other types of temporary housing.

source: city of Kansas

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ADU
48 WHEN TO USE AHU? 50-25% BUILT 250,000-500,000 SITE TYPE SITE SCALE SHORT-TERM LEASE OWNERSHIP
49 ATTACHED: CORNER CONVERT DETACHED: PARKING SPACES DETACHED: UNUSED SPACE ATTACHED: ROOF EXTENTION
50 MODEL 4 LARGE LOT SUBDIVISON (LLS)

WHY SHOULD BIG BOX EXIST?

Numerous large boxes are finding it difficult to remain operational after the outbreak. These are referred to as ghost boxes.

In certain situations, especially when the big box construction is too inefficient to be retrofitted, it may be a wise move to demolish and rebuild. Here, a large lot subdivision strategy could be used to develop these properties into residential lots rather than another type of commerce. This model adheres to the traditional developer-driven methodology.

SMALL LOT SUBDIVISION

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SIMILAR MODEL source: Dezeen
52 WHEN TO USE LLS? <25% BUILT INDEPENDENTLY OWNED >500,000 SITE TYPE OWNERSHIP SITE SCALE
53 SMALLER LOTS FOR HYBRID HOUSING DEVELOPMENT VACANT BIG BOX DEMOLISHED

S IMAGINATION

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HOW TO DESIGN

BIG BOX HOUSING?

A framework that includes a market, financing, housing, big box shape, and building feasibility choices is offered to help visualize this new housing type. Depending on the needs of the site, iterations can be made by combining and contrasting these alternatives.

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SELECT MARKET CRT FIT AHU LLS PICK HOUSING TYPE CHOOSE FINANCE Finance-it-together Community roof trust Cluster Corridor Accessory Housing unit Large lot subdivision Apartment Row house Tower Bungalow court
57 CONSTRUCTION FEASIBILITY ADAPT TO SHAPE Build-in Build-on Built-next to Build-instead Irregular boxes Weird boxes Regular boxes Long boxes
SELECT MARKET
FIT AHU LLS PICK HOUSING TYPE CHOOSE FINANCE Finance-it-together Community roof trust Cluster Corridor Accessory Housing unit Large lot subdivision Apartment Row house Tower Bungalow court
CRT

CONSTRUCTION FEASIBILITY

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ADAPT TO SHAPE
Build-on Built-next to Build-instead Irregular boxes Weird boxes Regular boxes Long boxes
Build-in
SELECT MARKET
FIT AHU LLS PICK HOUSING TYPE CHOOSE FINANCE Finance-it-together Community roof trust Cluster Corridor Accessory Housing unit Large lot subdivision Apartment Row house Tower Bungalow court
CRT

CONSTRUCTION FEASIBILITY

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ADAPT TO SHAPE
Build-on Built-next to Build-instead Irregular boxes Weird boxes Regular boxes Long boxes
Build-in
120 HOUSING UNITS CLUSTER DOWNTOWN TOWER COMMUNITY ROOF TRUST SYSTEM HOUSING MODEL 62 OPTION 1
IRREGULAR BOX 63
TOWER ON A
OPTION 2 100 HOUSING UNITS 64 CLUSTER HOLLYWOOD APARTMENT SYSTEM HOUSING COMMUNITY ROOF TRUST MODEL
65 APARTMENT
REGULAR BOX
ON A
20 HOUSING UNITS CLUSTER OLD CHINA TOWN BUNGALOW COURT ACCESSORY HOUSING UNIT SYSTEM HOUSING MODEL OPTION 3 66

BUNGALOW COURT ON A WEIRD BOX

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36 HOUSING UNITS CORRIDOR NORTH HOLLYWOOD BUNGALOW COURT FINANCE-IT-TOGETHER SYSTEM HOUSING MODEL OPTION 4 68

BUNGALOW COURT AROUND REGULAR BOX

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50 HOUSING UNITS CLUSTER SKIDROW ROW HOUSE SYSTEM HOUSING MODEL OPTION 5 70 COMMUNITY ROOF TRUST

ROW HOUSE ON A LONG BOX

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10 HOUSING UNITS CORRIDOR VALLEY GLEN ROW HOUSE SYSTEM HOUSING MODEL OPTION 6 COMMUNITY ROOF TRUST 72

ROW HOUSE ON A WEIRD BOX

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300 HOUSING UNITS CORRIDOR VAN NUYS APARTMENT + ROW HOUSE LARGE LOT SUBDIVISION SYSTEM HOUSING MODEL OPTION 7 74
HYBRID NEXT TO A REGULAR BOX 75
72 HOUSING UNITS CORRIDOR NORTH RIDGE TOWER SYSTEM HOUSING MODEL OPTION 8 FINANCE-IT-TOGETHER 76

TOWER IN A LONG BOX

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78 XS STORIES

THE CASE OF GREEN MEADOW BBH IN 2030

This section presents the experiences of a Black and Latino community residing in a Big Box Housing in the neighborhood of Green Meadows. The case demonstrates how a vacant industrial warehouse, also recognized as a “Ghost Box,” was transformed by the neighborhood through an incremental process, providing the community agency through wealth and livelihood.

FINANCE STORY TECHNICAL STORY SYSTEMIC STORY SPATIAL STORY 79

IN 2022

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REGULAR
GREEN MEADOW APARTMENT IN A
BOX
INDUSTRIAL WAREHOUSE 740-800 E 111TH PLACE 81 source: Google Earth regular box
Total 10,906 Households -1,660 home owners Black -3,333 home owners Latino 46.8% residents POC 82 source: US Census Bureau

BIG BOX OPPORTUNITY

Green Meadows is a South Los Angeles neighborhood with a 2000 census population of 30,558 people. It is one of the densest neighborhoods in the county, with an average population density of 12,785 persons per square mile. The majority of the neighborhood’s residents are Black (44.1%) and Latino (54.1%). With only 3.6% of residents possessing a bachelor’s degree and a median age of less than 25 years, housing is a pressing issue in this community. Currently, 10,906 households make up the neighborhood, and 47.1% are homeowners. The neighborhood is highly populated and contains no vacant land suitable for housing construction.

0% 57.5% 33.5% 38.6% 55.8% 42.7% White Black Latino Asian Non-white 83 source: US Census In 2022
FOR SALE • Single-story manufacturing/warehouse facility • 5.52 acres of land • Located 3 blocks north of Imperial Highway Industrial Property 150,800± LAND SQ.FT.: 240,585± 740-800 E 111TH PLACE, LOS ANGELES, CA 90059 Building Area 150,800± Sq.Ft. (32,000± sq.ft. is a metal structure) Land Area 240,585± Sq.Ft. PROPERTY DETAILS 84 source: Major Properties school Big Box Neighbourhood Neighbourhood temporary shed health care center community garden railway line
FIT Cluster + Finance-it-together + Apartment + Build-in/instead of

STORIES FROM 2030 FINANCE

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HOW WAS THE BIG BOX HOUSING

FUNDED?

Green meadows Big box housing was financed utilizing the Finance-it-together technique (FIT). Collectively, community members established a non-profit trust sponsored by the community and philanthropic partners. The trust acquired the property in 2022 by utilizing grants such as the density bonus and Low-Income Housing Tax Credits (LIHTC). AWS Warehousing leased the acquired site for two years to generate cash flow for the development of housing infrastructure. As demand soared, a portion of the warehouse was redevelopment into apartments. While the remaining structure remained to serve as AWS warehouse space, the trust decided to invest simply in an effective structural framework of a high density apartment in order to reduce costs. In lieu of selling or leasing land at affordable prices, communities might build their homes on these units. As the demand for homes increased, the trust decided to gradually modify elements of the building. Economically, the trust flourished by meeting market returns and offering affordable property ownership at the same time.

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COMMUNITY TRUST FUNDS CASH-FLOW FROM WAREHOUSING AFFORDABLE HOUSING GRANTS LOW-INCOME HOUSING TAX CREDIT PHASE 1 PHASE 2 PHASE 3 PHASE 4 89

STORIES FROM 2030

TECHNICAL

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HOW WAS THE BIG BOX HOUSING BUILT?

The existing warehouse had a 12m × 13m modular structural grid, which enabled for the creation of a 9m x 4m indoor unit and a 3m x 4m outdoor space. Using this unit, a toolkit of plans was produced for creating various sorts of housing units, including one-bedroom, two-bedroom, studio, dormitory, community kitchen, etc. The inherent flexibility allowed homeowners to construct in phases. As homeowners purchase a unit area or a group of unit areas, they could use the toolkit to select and build the desired house type. This method lessens the pressure on the trust as a developer and enables them to meet demand as necessary.

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FLEXIBLE UNIT LAYOUTS 92 Storage 9 M 4 M 1 BED + KITCHEN + BATH 1 BED + BATH 1 BED + BATH 1 BED + LIVING 1 BED + KITCHEN 1 BED + KITCHEN KITCHEN + STUDY KITCHEN + STORAGE 3 BED OCCUPANCY 3 BED OCCUPANCY 3F BED OCCUPANCY 3F BED OCCUPANCY
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STORIES FROM 2030

SPATIAL

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HOW IS THE BIG BOX HOUSING

INHABITED?

Apartment and Bungalow Courts were utilized to inhabit the Big Boxes Through the establishment of corridors, circulation spaces, courtyards with cutouts in the roof, and other community spaces, the project established areas for community use and social interaction. The themed courtyards were a Big Box interpretation on the Los Angeles Bungalow court type. The mixed housing option ensured the presence of senior citizens, children, working professionals, and students on the same property.

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STORIES FROM 2030 SYSTEMIC

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HOW DID THE BIG BOX HOUSING EMPOWER?

The Green Meadows Trust allowed for the development of the Green Meadows Big Box Housing. The proposed model systematically provided affordable housing, fostered a sense of community belonging, and offered opportunities for wealth creation. The establishment of supplementary programs, such as a center for skill training, empowered the youth population in the neighbourhood. Community members were encouraged to engage in entrepreneurship via zones for small-business commerce. Since the expense of land was borne by the trust, communities were able to acquire wealth with minimal capital outlay.

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GREEN MEADOWS BIG BOX HOUSING

AFFORDABILITY

BELONGING WEALTH-BUILDING

Financial Agency through Big Box Housing Trust

Community Owned Small Business

CommonInterest groups in Mixed Housing

Green Meadows Neighbourhood REIT

Limited Equity Corps for Units in the BBH

Commercial community roof trust for roof activation

New Cooperatives within 650 Units of BBH

Green Meadows Investment Trust

Auxillary Facilities: Skill Training Center, Health Center, Community Centers

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In 2022

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105 In 2030
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BIGBOX HOUSING BIGBOX HOUSING BIGBOX HOUSING BIGBOX HOUSING 108

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