A JADU is a smaller conversion-only ADU (max 500 sq ft) within the existing walls of a single-family home, sharing utilities with the primary dwelling. More restrictive than a standard ADU.
JADUs are defined by California law as conversions of existing space within a single-family home. They require an efficiency kitchen and independent access but can share a bathroom with the primary dwelling. The owner-occupancy requirement has historically applied.
JADUs are primarily a single-family-home tool, not multifamily. For LA multifamily sellers, JADUs rarely apply directly. Relevant mostly in portfolio contexts where single-family properties are involved alongside multifamily holdings.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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