LOS ANGELES—Champion Real Estate has sold a 1.75-acre land site in Hollywood for a record $39.9 million to Mill Creek Residential Trust. The site is entitled for a 248-unit luxury mixed-use multifamily property. The sales price of the site is $160,000 per door.
Champion decided to sell the property after a very lengthy entitlement process, which took nearly two years. "When we did receive entitlements this summer, we realized that with all of the resources that we had to spend on this property, our business had changed," Bob Champion, the president and CEO of Champion Real Estate, tells GlobeSt.com. "We are now in the value-add space buying existing properties that we can improve, and we decided that instead of using our capital to build this project, we would take our profits and use that money to further bolster our value-add business."
Champion took the property to market and received multiple offers from developers and institutional builders, although he did not say the exact number of offers he received. "We had multiple offers. Ultimately, we tried to pick the buyer that we thought was best positioned to perform quickly, and that is not 100% reflective of price, but also reflective of time," he says.
The site is entitled for 248 apartment units with 13,000 square feet of commercial space and 194 onsite parking spaces. Curtis Palmer formerly of CBRE and now of ARA Newmark, marketed the property on behalf of the seller.
Champion's value-add business is not Hollywood focused. "Our value-add business is statewide," adds Champion. "We are buying existing apartment buildings and shopping centers and remodeling them."
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