4433 Cartwright Ave, Los Angeles

the successful sale of this 14-unit, RTI development site located at 4433 Cartwright Avenue in the Toluca Lake market of North Hollywood, California.

Property Description

The vacant site totals 6,500 square feet, zoned R3-1-RIO and is located in the high profile Toluca Lake submarket of the San Fernando Valley. The offering is RTI (ready-to-issue) for 14 units. The 4-story apartment complex has a great unit mix with one and two bedroom units and only two of them are low income. The plans have been reengineered with 8 on grade parking spaces, significantly reducing the cost and time of construction.

4433 Cartwright is ideally located within 2 miles of many restaurants, retail, grocery, and entertainment options. The property boasts a Walk Score of 77 indicating that it is very walkable as most errands can be accomplished on foot. Multiple transit options are also available including the 101 and 134 freeways, both on and off ramps are within a 1-minute drive. The Universal Studios/Studio City Metro Red line station is located 1 mile away which provides direct service to Union Station in Los Angeles.

Deal Story

We went to market on July 23rd and generated multiple offers in the first few days of our marketing campaign. We issued multiple, non-binding counter offers to all Buyers on July 29th and opened escrow July 30th with a Buyer that accepted all of the Seller's terms. The executed purchase agreement was at our list price with only 10 days of due diligence and 45 days to close escrow, and we negotiated that the Buyer would pay for all the city permit fees.

During escrow, we had to extend the buyer's due diligence period by 10 more days in order to makes sure the RTI permits could be extended by the city for an additional few weeks, which was necessary for the buyer to confirm he had enough time to get the permits paid for and transferred to him. After that 10 day period, we were able to get this confirmed by the city and the buyer removed all contingencies without any credits or price reductions. As we approached our original close date, the buyer asked the seller for an addition 30 days to close for reasons relating to the buyer's 1031 exchange. The seller was hesitant to grant this extension, but we were able to ease the seller's worries by negotiating a $50,000 noncontingent deposit in order for the buyer to get the extra 30 days to close.

In the end, we were able to achieve a very strong price for the seller's land, and we were able close the...