LOS ANGELES—Storm Properties has purchased anunentitled parcel of land from International Church of theFoursquare Gospel for an undisclosed price. The land sitewas excess property for the church, and required a zoning change.The church brought the property to market in a highly competitivesale, illustrating the strong demand for housing supply in theSouth Bay market.

“Most of the homes in the South Bay market are more than 50years old, so there is a significant amount of demand for new homeproduct and there certainly isn't enough supply,” AlanKwan, director of acquisitions at Storm Properties, tellsGlobeSt.com. “The church was looking for someone to perform on anunentitled basis and pay all cash, and we were able to step upgiven our roots in the South Bay community. We have been in thecommunity for more than 50 years, so we got comfortable with thelocation and the development challenges very quickly.”

Storm Properties plans to build McCoy255, aneighborhood of 21 two-story single-family homes.Homes in the community will have three-bedroom floor plans andrange in size from 1,662 square feet to 1,822 square feet. Theproject will cost an estimated $13 million, and is scheduled fordelivery in mid-2016. Although the site is not entitled, Kwanestimates that the entitlement period with take six to nine months.“We received a lot of support from the surrounding communities, sowe think we'll be able to go through the process pretty quickly,”he says.