All Forum Posts by: Ben Gold

@Billy W.

Thank you for explaining; this is very helpful!

W 3rd and Normandie is a close major intersection.  Lot is approx. 80x115. @Billy W.

@Billy W. (not sure if you receive an update when I comment)

Thank you for the response, Billy.  The lot is a corner lot, zoned R4, along a major thoroughfare in the residential area of Koreatown, which is rapidly improving.  I know developers are seeing a lot of opportunity in the neighborhood; another mid-rise resi project is under construction only a few blocks away.  However, there is not a lot of new construction available in the immediate area yet.

I am a very young commercial real estate professional looking for advice on a potential land deal in a very dense sub-market of Los Angeles.  There are two adjacent single-family homes on a combined lot area of over 9k sf; however, both parcels are zoned for multifamily, with no height limit and a 3:1 FAR.  Based on my deal source, the lots could be acquired for well below market value.  My assumption is that a developer could go vertical to build mid-rise multifamily, building approximately 27.5k sf.  Assuming a typical new construction in Los Angeles of this size, that the lots could be merged, and that the development could be successfully leased (apartments) or sold off (condos), what would be a reasonable price for a developer to pay for the land to build this size project and expect a decent return?

I'm not sure how I would go about calculating my expected exit value after merging the lots and re-marketing the land for development.