Dave Simmons of StrataX Development breaks down how AB1033 and SB9 are opening a new path to equity creation, density, and scalable real estate returns.
SAN JOSE, Calif. – Dave Simmons of StrataX Development Reveals How AB1033 and SB9 Are Creating a New Scalable Investment Strategy in California Real Estate
Dave Simmons of StrataX Development breaks down how AB1033 and SB9 are opening a new path to equity creation, density, and scalable real estate returns.
A major shift is underway in California real estate, and according to Dave Simmons, CEO of StrataX Development, investors who understand how to leverage new housing legislation may be positioned to capitalize on one of the most compelling opportunities in today’s market.
With the passage of Assembly Bill 1033 (AB1033) and Senate Bill 9 (SB9), the traditional limitations of single-family real estate are rapidly disappearing. These laws enable developers to create and sell multiple units on what was once a single parcel—unlocking new layers of value and significantly improving return profiles.
“AB1033 and SB9 are changing the math,” said Simmons. “Instead of relying on appreciation alone, investors can now actively manufacture equity by increasing density and creating multiple exit opportunities on a single property.”
StrataX Development has been actively executing this strategy by acquiring underutilized residential properties, renovating existing structures, adding accessory dwelling units (ADUs), and structuring them for individual sale. This approach allows for multiple revenue streams from a single asset, including resale of individual units or long-term rental income.
Projected Returns and Investment Profile
Based on internal project modeling and recent deal execution, StrataX Development is targeting:
- Projected IRR: ~39%–42% over an 18-month hold
- Equity Multiple: ~1.5x+
- Investment Structure: 10% preferred return with a 60/40 profit split
- Strategy: Value creation through entitlement, construction, and unit-level disposition
“These returns are driven by forced appreciation,” Simmons added. “We’re not speculating—we’re creating value through density, design, and execution.”
Sample Deal Economics: San Jose, CA (Rolling Glen Project)
A recent StrataX Development project illustrates the model:
- Total Revenue: $4.8M
- Total Project Cost: $3.78M
- Net Profit: ~$1.01M
The project involved transforming a single-family property into:
- A luxury primary residence (~3,000 SF)
- A separately sellable ADU condo (~1,200 SF)
By leveraging AB1033 for condo conversion and SB9-compatible density strategies, the project created multiple exit points from a single acquisition, significantly increasing total value.
For investors, this translated into:
- 1.56x equity multiple
- Example: $100K investment → ~$147K total return
“This is a fundamentally different way to approach residential investing,” said Simmons. “We’re turning one asset into multiple monetization events, which dramatically improves the risk-adjusted return.”
As housing demand continues to outpace supply across California, the ability to deliver smaller, more attainable housing units positions this strategy at the intersection of strong market fundamentals and favorable legislation.
StrataX Development is currently expanding its pipeline and is seeking strategic investment partners interested in participating in this emerging asset class.
“This is still early,” Simmons said. “The investors who move now have the opportunity to get ahead of a major shift in how residential real estate is developed and monetized in California.”
About StrataX Development
StrataX Development is a California-based real estate development company focused on unlocking hidden value in residential properties through ADU development, lot optimization, and condo structuring strategies enabled by AB1033 and SB9.
Investor Inquiries:
StrataX Development
Email: info@strataxdev.com
Phone: (844) 793-8800
Website: www.strataxdev.com
