245 N Gramercy Pl, Los Angeles

The LAAA Team of Marcus & Millichap is proud to announce the successful sale of 245 N Gramercy Place, located in the Hancock Park neighborhood of Los Angeles, California.

This property was listed by a residential agent as a single family house, but we were able to bring an offer from an apartment developer client of ours who bought this house for land value, and our client was willing to pay more than standard home buyers.

This 6,884 square foot lot is zoned R3, however it has a Q condition which limits the number of buildable units to 1 unit per 1,200 square feet of land, allowing a developer to build 5 units by-right. However, the property is also located in a TOC Tier 2 location, which allows for a 60% increase in buildable units, as long as the developer sets aside 9% of the units for extremely low income tenants. Utilizing this bonus, the developer will be allowed to build a maximum of 10 units, with only 1 of those units being restricted for low income housing.

Lastly, since there was an existing house on the lot, we were able to get the buyer traditional residential financing for this property with a 25% down payment. Usually, a developer would need to come up with all cash or another expensive financing option for unentitled land, but by being creative and utilizing the current house on the lot, the developer was able to get very attractive financing for this unentitled land purchase.

To learn more about this successful sale, or to receive a comprehensive pricing and/or exchange analysis on your multifamily property or land for multifamily development, please give us a call today!

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