Land in Los Angeles

[Brandon Foster]

Hello BP.  I'm a commercial agent in Los Angeles and I have an off-market land for sale in the heart of Koreatown, Los Angeles.  I haven't had much experience in land and I was wondering how ya'll usually go about evaluating whether this is a good deal and what the best use would be for the land.  The current owner is going through the process of having the land entitled for 158 units.  183 units are possible.  His entitlement plans are for hotel/apartments.  The land consists of three parcels totaling about 36,000 sq ft.  The owner is asking $15 million and he wants to sell because he's about to turn 90 and wants to retire from the real estate game.   Let me know what you think.  

[Manolo D.]

That all depends if he gets it entitled. It's a design and build type of thing. But it is pretty much the same as your commercial properties, but it has a very big ticket on the rehab/construction side of it. I'm sure you have calculators. And there are a lot of design build and operate companies in LA. Owner might need to carry some which is not unheard of in those kind of deals.