7403 Topanga Canyon Blvd, Los Angeles

LAAA Team of Marcus & Millichap is pleased to announce the closing of a potential 15 unit development site at 7403 Topanga Canyon.

Property Description

The property is located on 4,979 square feet of land and it benefits for alley access behind it and its corner lot location. An investor may be able to utilize TOC Tier 1 incentives to maximize the lot’s development potential and build 15 units. The property has conceptual drawings for a 15 unit apartment building with on grade parking and 4 stories above it. The proposed unit mix will include (4) Studios, (8) One Bedroom Units and (3) 2 Bedroom Units. Two units will be Low Income and three units will be ADU’s which will be converted into legal units after certificate of occupancy. With the lowest price per buildable unit of any multifamily development sites available to purchase in the San Fernando Valley, this project allows a developer to make a healthy profit. We estimate the future value of the project to be around $5,000,000.

Deal Story

We were introduced to the Seller in July by another agent in our office when the Seller had this property in escrow to purchase it as a single family house. We quickly realized that this client was buying this house on a lot that had more land value, and we were able to show this client that he could make a good profit on a quick flip if he sold this house to a developer.

Before closing escrow, we advised our client to have an architect put together preliminary conceptual drawings for an apartment building which we could later use to market and sell the lot to a developer. We introduced him to a top architect in Los Angeles, Ken Stockton, who recommended a design for 15 units, which was the most cost effective amount of units that could be built on this lot without the need for subterranean parking. The Buyer was comfortable with the design and convinced that we were correct in our assessment for a quick flip. He subsequently closed escrow on the house on 8/12/21 for $615,000, and we listed it for land value a few weeks later at $800,000.

We went to market on 9/27/21 and were able to quickly generate multiple offers. The winning buyer was selected because he is an active and local developer that coincidently worked with Ken Stockton Architects before, which allowed the buyer the confidence he needed to give the best offer which was a full list price, all cash offer and a quick 10 day due diligence period. Escrow went as smooth as we could hope with...