All-Time Record Smashing Sale in Tujunga, CA
DEAL STORY
Over the years, we have formed strong partnerships with affordable and supportive housing providers in LA, thanks to our extensive network of developers. These buyers seek fully vacant buildings, which are rare in the city unless they are newly constructed and not yet leased. With our expertise in selling new construction properties, we are well-positioned to assist these buyers.
One of our supportive housing buyers approached us for help in finding a suitable building in LA Council District 7, an area where they didn’t have any affordable units. We reached out to our developer contacts in that region, given our successful track record there.
Initially, the seller of 10150 Hillhaven wasn’t interested in selling, as they were a long-term developer with a hold strategy. However, after explaining the buyer’s profile and our ability to secure a premium price, their interest grew. We negotiated a great price of $17,750,000 and entered escrow.
Despite a smooth escrow process, it took nearly a year to close the deal. The property was “almost” complete when we opened escrow in January 2022, with an expected closing date of February 28, 2022. However, delays in obtaining the final certificate of occupancy (CofO) prolonged the process. City inspections and various department approvals caused significant delays. After nine months longer than expected, we finally received the CofO last week, leading to a successful closing.
The seller put in substantial effort to overcome obstacles, but the achieved price made it worthwhile. The record-breaking price we obtained exceeded market value and investor expectations. Additionally, the seller was able to close escrow quickly after receiving the CofO, avoiding holding costs and lease-up risks.
Our affordable/supportive housing buyer is delighted with the property acquisition in a desired district for adding affordable units. We are honored to contribute to addressing homelessness in Southern California by collaborating with these types of buyers.
Record-Breaking Sale in Tujunga, CA
This transaction sets a new record in Tujunga, CA, surpassing all previous sales in three different categories. Furthermore, our recent deal at 10240 Commerce Ave claimed the second-highest sale in Tujunga, making us responsible for the top two sale prices in the city’s history.
#1 Highest Gross Sale Price Ever ($17,750,000)
#1 Highest Price/Unit Ever ($522,059 per Unit)
#1 Highest Price/SqFt Ever ($518.08 per SqFt).
