AGOURA HILLS, CA—A one-acre plot of entitledland has traded in hands in a sale that drew majorattention from developers. After receiving eight competitiveoffers, developer Raven Ridge Development won thebid, and plans to develop 18 townhomes on the parcel.

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“There is very low land available in that area formultifamily sales, and the entitlement process inAgora Hills, CA, is very lengthy and expensive,” JohnBattle, SIOR, a principal at Lee &Associates who represented the buyer and seller in thetransaction, tells GlobeSt.com. “The barriers-to-entry for any newproduct are very high. So, when there is a site that is alreadyentitled and ready for permits, it is very attractive todevelopers.” Battle was joined in representing both parties by Lee& Associate's Matt Benwitt.

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The sellers, who own and operate high-end carwashes, spent nineyears obtaining permits for the site, with the intention ofbuilding a carwash on parcel, which is located at Palo ComadoCanyon Road and Chesebro Road. After the process, the sellerdecided against building a new carwash site and opted to seller theentitled land.

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Raven Ridge Development plans to immediately begin obtainingpermits for development on the 42,985-square-foot plot. All of theunits will have three bedrooms and two bathrooms, with theexception of one two-bedroom, two-bath unit. Each will be designedwith two stories and an enclosed garage. The developer paid $2.1million for the site, or $116,000 per unit. “The offers were allcompetitive,” says Battle. “We eventually made a deal with adeveloper who was able to close on the transaction in a timelymanner.”

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The market has a limited multifamily supply and strong demand.“The vacancies in this market are pretty much nonexistent and rentsare strong,” Battle explains, adding that the demand formultifamily helped fuel interest in the land sale. To supplythe demand for multifamily, prefab homes builderBlu Homes opened its first model home in Agoura Hills, CA latelast year. The 24-foot pod was built on a hillside and can be usedas a guesthouse, yoga room or home office.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.