REO Portfolio | 4 Well Located SFR Development Sites
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The LAAA Team of Marcus & Millichap is proud to announce this very exciting and unique sale that we just completed for a major bank after they foreclosed on this portfolio of properties from the same original owner/developer.
This portfolio of deals were owned by guy who filed for bankruptcy in 2019 and lost all 4 of these properties to the same bank. The original owner bought all of these lots for the purpose of redeveloping them or completely remodeling them and flipping it off. When he lost these properties two years ago, none of the houses were finished and therefore none of them could be sold to the end owner occupier on the residential market. Instead, all of these needed to be sold to a savvy developer and/or extreme value add investor. Furthermore, because the projects were already started but not finished, we needed to find a buyer who was willing and able to take on the risk associated with taking over another developer's project and permits, without truly knowing what kind of issues they would run into once they start peeling back the layers of what has been done already over two years ago.
All 4 of these incomplete single family homes were unique. One was raw, unentitled land that needed to be redeveloped from start to finish. Two of them were redevelopments that the old owner started but did not finished and have been sitting mid-construction for the past two years, and one of them was not a full redevelopment but instead a gut rehab combined with converting the garage to an ADU, and again, that rehab job was not finished.
Although the LAAA Team does not sell single family homes, the foreclosing bank awarded us these listings because they understood the buyers for these complicated mid-construction deals would be a savvy investor and/or developer who knows how to take over a project that has already started and get it to completion. Of course, we would not be well suited to sell the finished houses to the end user, but these complicated deals were perfectly suited for our skill set and clientele, and we proved that by closing one of the more complicated portfolio deals we have dealt with.
At the end, we sold the three houses that had already been started but not finished to one buyer, and a different buyer purchased the lot in Encino where no work has been started and is a blank canvas for the new owner to build any type of house he wants.
The LAAA Team of Marcus & Millichap is proud to announce this very exciting and unique sale that we just completed for a major bank after they foreclosed on this portfolio of properties from the same original owner/developer.
This portfolio of deals were owned by guy who filed for bankruptcy in 2019 and lost all 4 of these properties to the same bank. The original owner bought all of these lots for the purpose of redeveloping them or completely remodeling them and flipping it off. When he lost these properties two years ago, none of the houses were finished and therefore none of them could be sold to the end owner occupier on the residential market. Instead, all of these needed to be sold to a savvy developer and/or extreme value add investor. Furthermore, because the projects were already started but not finished, we needed to find a buyer who was willing and able to take on the risk associated with taking over another developer's project and permits, without truly knowing what kind of issues they would run into once they start peeling back the layers of what has been done already over two years ago.
All 4 of these incomplete single family homes were unique. One was raw, unentitled land that needed to be redeveloped from start to finish. Two of them were redevelopments that the old owner started but did not finished and have been sitting mid-construction for the past two years, and one of them was not a full redevelopment but instead a gut rehab combined with converting the garage to an ADU, and again, that rehab job was not finished.
Although the LAAA Team does not sell single family homes, the foreclosing bank awarded us these listings because they understood the buyers for these complicated mid-construction deals would be a savvy investor and/or developer who knows how to take over a project that has already started and get it to completion. Of course, we would not be well suited to sell the finished houses to the end user, but these complicated deals were perfectly suited for our skill set and clientele, and we proved that by closing one of the more complicated portfolio deals we have dealt with.
