Off- Market Duplex in LA - No Offers So Far

[Diya Wahi]

Hoping I can get some feedback about a deal that was brought to me. I am Realtor and a friend hired me to find a buyer for an off-market duplex in LA (West LA/Beverly Hills area). I have posted the deal on Biggerpockets and reached out to my buyer list but I have yet to receive any feedback or offers. If anyone can give me their thoughts on the deal and what I can improve to make the deal more appealing, I would appreciate it.

Property Details:

Asking $2,500,000

4 bedrooms, 2 bathrooms

6,000 square foot lot

 The lot is zoned R-3 and it has great potential for additional units (5 - 6 units). Property is best suited as a tear down. Condition of the interior will not allow for conventional financing. 

The asset has a redevelopment opportunity as well. The duplex is 820 feet from a qualifying bus Transit Stop on Olympic and La Cienega and 1,300 feet from New Metro Station at La Cienega and Wilshire Blvd.

The location qualifies for a Tier 3 TOC zoning bonus of 70%. The zoning bonus would allow for 8 -10 units on the lot.

[Cesar Ruiz]

Seems like it might be a bit overpriced ?

The lot seems a bit small for the build?

8-10 units on the lot for zoning but with set backs and all building 3 level townhomes max seems like 4 units if that?

at 2.5 mill/4 625k for each lot plus build cost assuming it can be cheap looking like 300k/unit 925k per townhome....Now Im not totally sure if the numbers are right and the comps are there but build cost for each property to be at the 900k seems pretty steep?

What do you personally think of the deal? If you were to build or list it on market would their be alot of action on it?