AGOURA HILLS, CA—A one-acre plot of entitled land has traded in hands in a sale that drew major attention from developers. After receiving eight competitive offers, developer Raven Ridge Development won the bid, and plans to develop 18 townhomes on the parcel.
“There is very low land available in that area for multifamily sales, and the entitlement process in Agora Hills, CA, is very lengthy and expensive,” John Battle, SIOR, a principal at Lee & Associates who represented the buyer and seller in the transaction, tells GlobeSt.com. “The barriers-to-entry for any new product are very high. So, when there is a site that is already entitled and ready for permits, it is very attractive to developers.” Battle was joined in representing both parties by Lee & Associate’s Matt Benwitt.
The sellers, who own and operate high-end carwashes, spent nine years obtaining permits for the site, with the intention of building a carwash on parcel, which is located at Palo Comado Canyon Road and Chesebro Road. After the process, the seller decided against building a new carwash site and opted to seller the entitled land.
Raven Ridge Development plans to immediately begin obtaining permits for development on the 42,985-square-foot plot. All of the units will have three bedrooms and two bathrooms, with the exception of one two-bedroom, two-bath unit. Each will be designed with two stories and an enclosed garage. The developer paid $2.1 million for the site, or $116,000 per unit. “The offers were all competitive,” says Battle. “We eventually made a deal with a developer who was able to close on the transaction in a timely manner.”
The market has a limited multifamily supply and strong demand. “The vacancies in this market are pretty much nonexistent and rents are strong,” Battle explains, adding that the demand for multifamily helped fuel interest in the land sale. To supply the demand for multifamily, prefab homes builder Blu Homes opened its first model home in Agoura Hills, CA late last year. The 24-foot pod was built on a hillside and can be used as a guesthouse, yoga room or home office.