LOS ANGELES—Developers are picking up every last development site in the city, no matter the size. A 21,000-square-foot land site located at 646 North Virgil Avenue in Silverlake has traded hands between a property trust and a developer. The site is located in a neighborhood with a high demand for housing, and the zoning allows for the development of 26 units.
“As infill development continue to sites become harder to find many developers are moving towards building on smaller sites,” Tony Solomon, VP and regional manager at Marcus & Millichap, tells GlobeSt.com. “Also, demographics, technology and economics are also influencing the evolution of development at a more rapid rate than before. The continued demand for housing and relative lack of newly built product in this area has created a need for more units.” Jon Emrani, VP of investments in Marcus & Millichap's West Los Angeles office, represented both the buyer and the seller in the transaction.
The real draw of the property is the location. It sits in a relatively revitalized area between Silverlake, Los Feliz and East Hollywood. The neighborhood has a growing demand for housing and is near local shops and restaurants, as well as other development projects. “The Silver Lake area continues to be very sought after, creating rent pressure on multifamily and retail alike,” says Solomon. “Many investors were also interested in it because of its close proximity to the Sqirl café that has garnished a lot of attention. Specifically, it is a good location for the planed mixed use product being on the corner of Virgil and Melrose.”
As a result of the location and the housing demand, the property was highly sought after. Solomon did not divulge the number of offers, but says, “There were many offers on the property with several types of developers including retail, mixed use, small lot subdivision builders and apartment and condo developers.”
Both of the buyers in the transaction were not disclosed. The property traded hands for $2.6 million.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
LOS ANGELES—Developers are picking up every last development site in the city, no matter the size. A 21,000-square-foot land site located at 646 North Virgil Avenue in Silverlake has traded hands between a property trust and a developer. The site is located in a neighborhood with a high demand for housing, and the zoning allows for the development of 26 units.
“As infill development continue to sites become harder to find many developers are moving towards building on smaller sites,” Tony Solomon, VP and regional manager at Marcus & Millichap, tells GlobeSt.com. “Also, demographics, technology and economics are also influencing the evolution of development at a more rapid rate than before. The continued demand for housing and relative lack of newly built product in this area has created a need for more units.” Jon Emrani, VP of investments in Marcus & Millichap's West Los Angeles office, represented both the buyer and the seller in the transaction.
The real draw of the property is the location. It sits in a relatively revitalized area between Silverlake, Los Feliz and East Hollywood. The neighborhood has a growing demand for housing and is near local shops and restaurants, as well as other development projects. “The Silver Lake area continues to be very sought after, creating rent pressure on multifamily and retail alike,” says Solomon. “Many investors were also interested in it because of its close proximity to the Sqirl café that has garnished a lot of attention. Specifically, it is a good location for the planed mixed use product being on the corner of Virgil and Melrose.”
As a result of the location and the housing demand, the property was highly sought after. Solomon did not divulge the number of offers, but says, “There were many offers on the property with several types of developers including retail, mixed use, small lot subdivision builders and apartment and condo developers.”
Both of the buyers in the transaction were not disclosed. The property traded hands for $2.6 million.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
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