5554 Klump Ave, North Hollywood

The LAAA Team of Marcus & Millichap is proud to announce this impressive sale of a triple-lot assemblage development in the North Hollywood Arts District.

Offering Overview

The offering sits on 21,761 square feet of land zoned C2-1 & R4 with a TOC Tier 3 bonus, and it is located in a qualified opportunity zone. With the 3 lots' combined zoning, a developer can build 54 market-rate units by-right, or a developer could choose to utilize the TOC Tier 3 Density bonus and build up to 96 apartment units. With the TOC Tier 3 bonus, a developer will be allowed an increased FAR and height limit to 4.5:1 and 97 feet, respectively. The property is also located in an Opportunity Zone which comes with significant tax incentives. To learn more about the TOC program and/or the Opportunity Zone tax law, please contact us today. Currently, there are 12 apartment units on two of these lots that bring in almost $220,000 in gross annual income. Additionally, there is a single family house on the third lot in this offering.

Deal Story

We listed this property in mid April 2022 and within hours of launching our marketing campaign, we were able to get a strong offer from an extremely qualified buyer. This buyer was a proven developer in the area with many other lots owned and developed in the NoHo Arts District. Sometime, when the an offer comes so fast, the seller can become worried that we underpriced the deal. However, in many situations the first offer is actually the best buyer who's willing to pay the highest price, and they write a strong offer right away out of fear of the market "stealing" it from them. We were able to advise the seller that this buyer was the perfect match because of his great resume and also because he already has an opportunity zone fund setup, making these lots ideal for this buyer because they are located in the middle of the NoHo Arts District Opportunity Zone. The seller ultimately agreed with our assessment and gave the buyer a counter offer at full list price and with very seller-favorable terms. The buyer accepted and we opened escrow within 1 week of signing the listing agreement.

The buyer had a 45 day contingency period, which is actually on the shorter side for land deals where contracts tend to me much slower paced. After 45 days the Buyer removed all contingencies cleanly without a single dollar of credits or price reductions. Fast forward a couple of months to our successful close today, and this deal proved to be one of those...