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ARTICLE · 08 MARCH 2014

Establishing Separate Ownership In A Vertical Mixed Use Project

Developers of urban mixed-use projects must answer the question of how to distribute complementary land uses throughout a project.

United StatesReal Estate and Construction

Developers of urban mixed-use projects must answer the question of how to distribute complementary land uses throughout a project.  Residential, retail, commercial and other uses can reside on a single parcel, or they can exist on separate adjacent parcels in close proximity to each other.  Both alternatives must contend with California's subdivision and condominium laws in order to establish separate ownership interests for purposes of sale and financing.

A horizontal mixed-use project is one in which a variety of different uses — residential, retail, office, hospitality, entertainment — are constructed on separate adjacent parcels. Each building has a separate land use and each building can be sold and financed separately because it exists on a separate legal parcel.  The project is considered mixed-use because different land uses are established immediately next to each other in a mixed-use district or perhaps in a town center.  The subdivision of horizontal

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