1541 S Hayworth Ave

The successful sale of 1541 S Hayworth Avenue in Los Angeles, California.

Property Overview

The Site is 6,850 square feet in total and it is zoned R3 & TOC-3, which would allow for a maximum of 16 units to be built. However, the seller of this property entitled it for only 10 units in order not have to build subterranean parking, saving on construction costs. The sellers plans, which are very close to full RTI status, still needed to use the TOC bonus to get to 10 units, which forced 3 of the 10 units to be restricted to affordable housing.

Deal Story

We were introduced to the seller a few months ago to potentially list this project as an RTI development to build 10 units. However, after reviewing the seller's plans, we quickly realized that he was not optimizing the land's value because he was limiting the development to only 10 units, 6 less than the maximum allowed per the zoning and TOC bonus. Furthermore, the seller could have chosen to build 9 full market-rate units by-right, but he was overly concerned about subterranean parking costs so he decided to utilize the TOC bonus in order to lower the parking requirements. However, instead of pushing the TOC bonus to 16 units, he only added 1 unit above by-right zoning, which ultimately cost him 2 market-rate units because his 10 units would have included 3 affordable units. We advised the seller to not go through with pursuing full RTI status with his plans, and instead we urged him to allow us to list his property as raw unentitled land so that we could market the property to it's highest and best use.