3415 Bellevue Ave, Los Angeles

The LAAA Team of Marcus & Millichap is proud to announce another successful REO sale with this 7,507 SqFt lot in Silver Lake, located at 3415 Bellevue Ave, Los Angeles, CA 90026. This vacant 4-unit property was sold for land value to a local developer.

The LAAA Team is quickly becoming one of the most active teams for REO or court ordered sales in Los Angeles of multifamily or land for multifamily development. This REO closing is now our 9th sale for a bank or court appointed seller since the beginning of 2020, and we have our 10th one closing later this month.

Property Info

This 7,507 SqFt lot is zoned R3-1VL, which allows a developer to build 9 units by right, or a maximum of 14 units if the developer decides to utilize the state's density bonus. If the buyer decides to build the maximum 14 units, he will need to set aside at least 2 of the units for low income housing. Furthermore, the property currently has a 2,840 SqFt, 4-unit apartment building on the property, which was 100% vacant at the time of sale.

Deal Story

The original owner/developer bought this property in October 2017 with the plan of developing a 4-story, 14 unit apartment building, with 3 of those units being designated for low income housing. In mid-2019, after 2 years of work with LA City, the plans for this development were nearly fully approved when that owner ended up filing for bankruptcy. After that, the property and the plans to redevelop came to an immediate stop, and it has not been touched in the two years since while the courts and banks figured out what to do with the property. Ultimately, our client foreclosed on the property in early May 2021, and then they exclusively listed the property with us the week after.

When we listed this property less than two months ago, we marketed it as both a redevelopment deal as well as a value add deal. As it stands today, the property is a 4-unit multifamily property that is fully vacant. Therefore, it was possible for a normal value add buyer to purchase this deal, spend time and money on capital improvements to the current structure, build one or two ADUs, and then get the property to a significantly higher value where they could sell or refinance.

Ultimately, the closing buyer was a local developer who has many other developments currently underway within a 1 mile radius of this property, and this lot fit perfectly into his portfolio of ongoing developments. This active developer gave the seller a near list price offer within...