10605 Eastborne Ave, Los Angeles

The LAAA Team of Marcus and Millichap is pleased to announce the close of 10605-10609 Eastborne Avenue, a high-profile development opportunity located in the 90024 zip code of Westwood, one of the best zip codes in the country.

Property Overview

These were two side by side lots, each 50 feet by 130 feet, both having rental units on them. 10605 Eastborne had 3 units and 10609 Eastborne had 4 units, some of which could have been delivered vacant.

The site is zoned R3 and it is Tier 2 TOC allowing a developer many options when designing the project. By-right; the zoning allows for 16 units, with a 45-foot height limit and a building envelope of 27,000 square feet, this might be the best option for someone looking to build condos. If someone is looking to utilize the TOC density bonus and maximize unit count, they would be able to build 28 units, go up to 56 feet and have a building envelope of 40,912 square feet. A developer might even be able to build a few additional units on this site by designing for ADU conversion post CofO.

The property is centrally located a few steps from Santa Monica Blvd. To the west you have West LA, the north you have UCLA campus and Westwood, to the east you have Westfield Century City Mall and Beverly Hills and to the south you have Rancho Park, home of the new Google office campus.

Deal Story

We successfully won this assignment against other top teams and went to market in July 2021. During the marketing campaign we were able to generate 4 qualified offers very close to our list price. On September 14th we had an executed contract and opened escrow at $5,300,000. The buyer was an experienced developer and was comfortable with a short due diligence period (21 Days) and a quick close (60 days). The due diligence was extended by a short amount of time in order to receive a fault study which most of the properties on Santa Monica Blvd are on. The buyer agreed to remove all contingencies without any price reduction or credit request in exchange for splitting this purchase into two separate escrows closing 6 months apart. The first parcel that closed was 10609 Eastborne, which recorded back on December 9, 2021 in order for the buyer to satisfy a small 1031 exchange. Next to close came 10605 Eastborne which closed this week, 6 months later, and this escrow was delayed 6 months in order for the seller to deliver a couple of the units vacant at close, which was negotiated into the contract when the buyer removed all...