UPLAND, CA—An institutional investor has purchased a 42-acre land site from Allied Retail Partners, an affiliate of LGB Real Estate, for $48 million. The raw site is entitled for 400 residential units and 100,000 square feet of commercial space.

Known as Park View, the development site is located in both Upland, CA and Claremont, CA. Allied Retail Partners purchased the site for $12 million in June of 2011 without entitlements. The company planned to obtain entitlements and turn the property for a profit when the market improved. “That is exactly what we did,” says David Goldman, a principal at LGB and Allied. This is part of Allied's business strategy. Since 2010, Allied has made a habit of acquiring properties like properties on the West Coast with the intent to sell the in an improved market.

According to LGB, land values increased dramatically in the last few years, but the steep price increase of this 42-acre site may also be attributed to the difficult entitlement process. “The entitlements were particularly complicated by the fact that the land straddles the city and county line, and therefore required approvals from Upland and Claremont, including certification of an environmental impact report, general plan amendments, zone changes and adoption of specific plans,” says Doug Beiswenger, principal of LBG and Allied. “Needless to say, we are thrilled with the outcome of the investment and wish the buyer great success with the land.”