REO Development Site Hits L.A. Market

Los Angeles

Continuing the rapid “fleshing-out” trend of distressed land assets within in the Los Angeles infill land market, a subdivided 9.47-acre REO development site recently hit the market. With an approved tentative tract map for 204 units, the site is expected to garner interest from a sizable list of both active homebuilders and land investors looking to take advantage of today’s discount land prices, says Frank Evanisko, president of Studio City, CA-based land brokerage Evanisko Realty & Investment Inc. which has been retained by a Chicago-based lender to market the site. The site is located at 13267-13275 Foothill Blvd. in Sylmar, CA. In the past 12 months there has been a significant increase in Los Angeles infill land transaction velocity as a general consensus has been reached amongst investors that the market has reached a definitive bottom. According to Evanisko, this consensus is beginning to have a noticeable propping effect on land values as it has ushered several new and previously dormant players back into the site acquisition market. Additionally, the recent emergence of several local banks within the construction lending market is helping many of these land deals close, adds David Melaugh, a partner at Evanisko Realty & Investment. Lending has proven to remain highly selective but the fact it exists is a great sign that recovery lies somewhere on the horizon they both contend.