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3243 Drew Street Los Angeles, CA 90065 Marketing Package
3243 Drew StreetLos Angeles, CA 90065Marketing Package
Opportunity toBuild 5 Small-Lot Homesin Glassell Park - Opportunity Zone
Presented By:
Ben KreitenbergListing Agent
DRE: 02103370O: (310) 853-8769M: (818) [email protected]
Kenny StevensPrincipal
DRE: 01090251O: (310) 971-9935M: (310) [email protected]
We sweat the details,so you don’t have to.
Neighborhood Overview
Local Developments
Local Hotspots
Property Overview
Property Description
Parcel Map
Site Plan
Subdivision Requirements
Site Plan
Drone Photography
Financials
Project Feasibility
Comparables
Sales Comparables
3243 Drew StreetMarketing Package
NeighborhoodOverview
Introducing:
Glassell ParkA Diverse & Charming Neighborhood, On the Rise
Glassell Park is a community nestled in a relatively small pocket between Atwater Village, Eagle
Rock, Highland Park, and Mount Washington. The area is bordered by the LA River to the South,
The Verdugo Mountains to the North, and views of Mt. Washington to the East. The zip code
gets its name from Andrew Glassell, a famous attorney and developer who was granted a large
portion of the land during the Great Partition of 1871. Glassell passed away in 1901 and the land
close family: Toland, Drew, Andrita, Marguarite, etc.
Glassell Park has experienced a tremendous change in the last 10 years. Hipsters from Atwater
Village, Highland Park, and Silver Lake are migrating into Glassell Park and occupying the
apartments and homes that once ran wild with questionable characters. The area provides a
breweries line the narrow commercial streets of Glassell Park providing entertainment and
dining to local residents. Median home prices in Glassell Park have increased by 10.5% over the
past year, and values are expected to continue rising as millennials keep pouring in, and the
city continues investing in infrastructure. Several large development/improvement projects are
expected to hit the area in the next 5 years, making it an attractive area to investors seeking
value where nobody else is looking.
Figueroa 31 The Victory on 30th
806 W. Adams
Orchard & 27th The Fig
Catch LA
Conservatory Laugh Factory8000 Sunset
Chateau MarmontSUR Restaurant
Sunset Plaza
Cafe BirdieGreyhound Bar & Grill
Mr. HolmesKindness & Mischief
Eaglerock Brewery
Momed
Division III
LocalHotspots1) Eaglerock Brewery
2) Momed
3) Proof Bakery
5) Salazar
6) Wax Paper
8)Target
9) Vanessa Mooney
10) Glassell Land
11) Division 3
12) King Taco
Local Hotspots Map
3243 Drew St.
1 7
8
9
10
11
12
2
3
4
5
6
Neighborhood OverviewLA River Developments
1) 19 Unit Luxury Apartment
Living Complex
Has been proposed by developers looking to acquire
the parcel running along the LA River known as the
Bow Tie Yard. The space was once a thriving train
station for the Union Pacific Railway, but has since
gone inactive and allows a potential opportunity for
investors to repurpose. As it stands, developers need
the city to grant a zoning change due to the fact
that the parcel is currently earmarked for heavy
manufacturing. However, with several projects
under construction adjacent to the Bow Tie Yard,
many believe the zoning change will be granted
which will benefit all neighborhing Glassell
Park Residents.
2) 56 Condominium Units
Luxury Condominium units known as “The River
House” have been developed on the waterfront
across from the Bow Tie Yard to meet growing
demand for luxury apartment living in Los Angeles.
Residents will be pioneers, becoming some of the
first to own a home on the LA River and witness its
revitalization first hand.
3) The Bend
This development sits on the Westside of the LA
River in Frogtown and was built by Killefer
Flammang Architects in 2017. The 3-story building
contains 40 loft-style units geared towards
creatives and makers. Some of the units feature
spiral staircases that lead to private roof decks
looking out to the LA River. Residents of this building
will get an incredible view that will only improve as
the city begins restoration of the LA River
4) 53 Live/Work Units
An LA - based Developer led plans to build 53 live/
work units on Blake Avenue directly adjacent to the
LA River. The new building would measure 54,000
SF and 11 percent of the units would be reserved for
low income tenants. The property is located on the
other side of the river from the Taylor Yard, a city-
owned site that will eventually be turned into a big
park.
6) Target
October of 2017, Target opened a store where the
Fresh and Easy previously shut down in late 2015.
There is already a Target nearby in Eagle Rock,
however Target executives believe a location in
Glassell Park will be a necessary void for a big-box
retailer to sink its roots and cater to this vibrant
local community.
7) 370 Aparment Living Complex
Has been proposed by a developer who recently
(Nov. 2016) acquired the 4.8 acre parcel adjacent to
the LA River in Glassell Park. Plans were submitted to
the city to build 370 units with 31 units set aside for
5) 117 Small Lot Homes & Condos
This project is currently the largest development
in Frogtown and sits directly across the river from
the Taylor Yard Parcel. This site was formerly a food
processing plant zoned for industrial use, but the
owners have led yet another zoning change to
multifamily. The project consists of two adjacent
parcels accounting for roughly 27,000 SF of land.
100 small lot homes will be developed on the Blake
Street parcel while 17 condo units will be developed
on the Blimp Street parcel. The property will include
amenities such as a dog park, playground, etc.
Neighborhood OverviewLA River DevelopmentsTie Yard and many other proposed developments
looking to achieve a zoning change from industrial
to multifamily.
40-acre Rio de Los Angeles State Park, residents
will enjoy a central paseo including lush landscaping
and 25,000 SF of retail space in the future. The
opportunities to live your dream in the heart of Los
Angeles. Half of the project has been completed
and is currently being leased, while the other half
is still undergoing construction.
8) LA River Restoration Plan
The city of Los Angeles has acquired the Taylor Yard
G2 Parcel, currently 42 acres of industrial rail yard,
and will have Union Pacific Railway clean up the soil
contamination. The plan includes restoring the area
into a wildlife sanctuary for the common use of
Glassell/Cypress Park residents. This means
widening the channel, restructuring channel walls
and banks to support vegetation, and the creation
of a pool system to support freshwater marsh
habitat. A bridge from Frogtown has also been
proposed which will connect residents on both sides
of the LA River. The road has been long and the
prize elusive, but its looking like the city is finally on
the cusp of beginning construction at the crown
jewel parcel on the Los Angeles River.
10) Taylor Yard Bikeway Bridge
A bright orange bridge across the LA River from
Frogtown to Cypress Park will start construction in
April 2019. The bridge will allow bicyclists and
pedestrians to travel safely across the River. The
architects seek to create the impression that the
bridge goes over the river instead of just spanning
it. This bridge is one of many that have been
planned across the LA River in the near future.
9) Taylor Yard Village Project
Nestled alongside the banks of the LA River in
Cypress Park, the 17-acre Taylor Yard Village master
plan includes 95 paired and detatched SFR homes
plus 262 apartments. Just steps away from the
LA River Developments MapLA River Developments Map
Upcoming Developments Near Drew St.
New ConstructionTriplex - Sold
for $500K/ unit
Juntos Family ParkRenovated
in 2018
Juntos Family ParkRenovated
in 2018
3243 Drew St.
Corner Triplexfor sale, soon
to be renovated
5 Unit ApartmentCurrently VacantUnder Renovation
7 Units NewConstruction
Plans Submitted
17 Unit ApartmentFully RenovatedRented in 2018
5 Unit ApartmentSold in 2019for $2.25M
Land for SaleFully Entitled
10 Small Lot Homes
18 Small Lot HomesComing Soon
Plans Submitted
5 UnitsNew Construction
Built in 2018
14 Small Lot HomesComing Soon
Plans Submitted
31 Units for SalePortfolio Sale$6,799,000
Upcoming Developments Near Drew St.
Major Renovations Taken Place Next Door3245 Drew Street
6 Unit Apartment Building on 10,099 SF LotProperty is currently vacant and undergoing major renovation.
3243 Drew St.3243 Drew St. 3245 Drew St.
PropertyOverview
Property Description
1522 N Mariposa Ave.
3243 Drew Street is located in the rapidly growing Northeast LA
neighborhood of Glassell Park and adjacent to the new LA River
Wetlands project. The o©ering consists of a VACANT Single Family Home
on a massive 11,111 SF lot zoned RD2-1-CDO. The land measures
50’ X 220’, making it a perfect candidate to subdivide into 5 Small Lot
Homes. The parcel is also located in an Opportunity Zone, which
qualifies the Owner for a special tax incentive program.
- Opportunity to Build 5 Small Lot Homes in Glassell Park!
- Northeast LA location: adjacent to Silverlake, Atwater Village and
Highland Park
- Minutes away from the LA River Revitalization Project
- Large 11,111 SF lot (50’ X 220’)
- Existing improvements include a vacant Single Family Home, Garage,
Shed, Small Filled Pool
- RD2-1-CDO Zoning (Build 5 Small Lot Homes by-right)
- Located in an Opportunity Zone
Property Highlights
Year Built - 1940
Existing Improvements
2 Bed | 1 Bath | Garage
Shed | Pool
Building Size - 1,613 SF
Lot Size - 11,111 SF
Zoning Type - LARD2-1-CDO
Submarket - Glassell Park
Cross Streets
Drew Street & Estara Avenue
APN
5458-015-040
Price - $1,125,000
Single Family Residential
VACANT
Land Cost - $101 / SF
Property Overview | Parcel Map
3243 Drew St.
Property Overview Opportunity Zone Development
3243 Drew Street is located in an
Opportunity Zone! What does this mean?
Opportunity Zones are a new community
development program established by
Congress in the Tax Cuts and Jobs Act of
2017 to encourage long-term investments in
low-income urban and rural communities
nationwide.
An investor can roll their capital gains into an
Opportunity Zone property and avoid paying
up to 15% on those gains. More importantly,
an investor can avoid paying up 100% of the
capital gains taxes accrued in the 10 year
required holding period if they substantially
improve the property. The substantial
improvement must cost at least as much as
the purchase price, and must be done 30
months of acquiring the property. The
Opportunity Zone Program favors ground-up
development and 3243 Drew Street is the
perfect Opportunity Zone deal.
Example: Purchase 3243 Drew Street with your capital gains (for $1,125,000),spend the substantial improvement money to build 5 homes (at least$1,125,000), hold the property for 10 years and cash out with 15% lesstax owed on the original gains rolled into the project, AND pay NOCAPITAL GAINS on the proceeds from your development project. Seefinancials page for more...
Opportunity Zone Map:https://cafinance.maps.arcgis.com/apps/webappviewer/index.html?id=d068b90cb97f4b429f3b180593036b7e
More on Opportunity Zones:https://www.irs.gov/newsroom/opportunity-zonesfrequently-asked-questions
ZoneMinimum Lot Width (feet)
Minimum Lot Area (square feet)
Minimum Lot Area Per Dwelling Unit of Guest
Room (square feet)
50RD1.5
50RD2
60RD3
60
70
70
RD4
RD5
RD6
5,000
5,000
6,000
8,000
10,000
12,000
2000
1,500
3,000
4,000
5,000
6,000
Subdivision Requirements
Lot Size - “RD” Zone
3243 Drew Street Lot Dimensions = 220’ X 50’
Property Overview
Property Overview | Drone Photography
3243 Drew St.
Property Overview | Drone Photography
3243 Drew St.
Property Overview | Drone Photography
3243 Drew St.
3243 Drew St.
Property Overview | Potential Rendering
Property Overview | Potential Rendering
3243 Drew St.
Financials
FinancialsProject Feasibility
10,100 Buildable SF (5 Units 2020 SF each)
X $240 - $275 per SF Construction Cost (Estimated)
= $2,424,000 - $2,777,500
Cost to Build 5 Homes
Total Cost to Build
-
=
$5,500,000 Proceeds from Selling 5 Homes
$3,799,000 - $4,152,500 Total Project Cost to Build 5 Homes
$1,347,500 - $1,701,000 N :32% - 45% Return on Cost
$5,250,000 Proceeds from Selling 5 Homes
- $3,799,000 - $4,152,500 Total Project Cost to Build 5 Homes
= $1,097,500 - $1,451,00026% - 38% Return on Cost
P if Homes Sell for $1,050,000
$1,125,000
+ $2,424,000 - $2,777,500 Cost to Build (Substantial Improvement**)
= $3,549,000 - $3,902,500
+ $250,000 Closing costs on $5m exit (5% sale price)
= $3,799,000 - $4,152,500 Total Project Cost to Build/Sell 5 Homes
Total Project Cost to Build/Sell 5 Homes
SubTotal Cost
Land Acquisition Price ($101/SF)
P if Homes Sell for $1,000,000
$5,000,000 Proceeds from Selling 5 Homes
- $3,799,000 - $4,152,500 Total Project Cost to Build 5 Homes
= $847,500 - $1,201,00020% - 32% Return on Cost
# Total Sales Price / SF
1 $5,500,000 $544/sf
2 $5,250,000 $519/sf
3 $5,000,000 $495/sf
4 $4,750,000 $470/sf
Sale Scenarios
Price / Home
$1,100,000/Home x 5 Homes
$1,050,000/Home x 5 Homes
$1,000,000/Home x 5 Homes
$950,000/Home x 5 Homes
$4,750,000 Proceeds from Selling 5 Homes
- $3,799,000 - $4,152,500 Total Project Cost to Build 5 Homes
= $597,500 - $951,00014% - 25% Return on Cost
P if Homes Sell for $950,000
Comparables
# on Map Address Sold Price Sold Price/sf Year Built Unit Mix Building Size Lot Size Stories Submarket
1 $920,000 $511/sf 8.11.17 2016 3 + 3 TH 1800 2000 3 Atwater Village
2 3116 Rivers Edge Court, Los Angeles, CA 90039 $1,050,000 $536/sf 3.27.18 2018 3 + 4 TH 1958 2178 3 Atwater Village
3 2926 Rowena Ave #6, Los Angeles, CA 90039 $1,048,000 $623/sf 10/4/18 2017 3 + 4 TH 1681 1640 3 Silver Lake
4 3001 Peak Place, Los Angeles, CA 90065 $920,000 $471/sf 9.5.18 2013 3 + 2 TH 1914 2372 2 Glassell Park
5 5103 E Echo Street, Los Angeles, CA 90042 $1,025,000 $498/sf 9.18.18 2018 3 + 3.5 TH 2055 1311 3 Highland Park
6 1631 Preston Lane, Los Angeles, CA 90026 $1,100,000 $718/sf 7.27.18 2018 3 + 3 TH 1530 1651 3 Echo Park
1 of 6 Small Lot Homes, Glassell Park, Close to Drew Street, Built 2013, Resold in 2018, 2 stories, backyard, 2 car garage
1 of 6 Small Lot Homes, Roof deck, views, outdoor patios, 2 car garage, 3 stories, modern architecture, large building
1 of 5 Small Lot Homes, technologically innovative features, modern architecture, 2 car garage, 3 stories, views
SMALL LOT HOME COMPS
Comments
1 of 6 Small Lot Homes, balconies, 2 car garage, modern architecture, backyard, LEED platinum certi�ed, 3 stories, views, Built 2016
1 of 6 Small Lot Homes, roof deck, 2 car garage, 3 stories, modern architecture, outdoor patios, views, close to Drew Street
1 of 33 Small Lot Homes, Roof deck, balcony, smart home technology, chef's kitchen, 3 stories, 2 car garage, views
ComparablesSmall Lot Home Comps
3540 La Clede Ave, Los Angeles, CA 90039 $920,000 $511 per SF 08.11.17 2016 3+3 TH 1800 SF 2000 SF 2 Atwater Village
$1,020,000 $520 per SF 03.27.18 2018 3+4 TH 1958 SF 2178 SF 3 Atwater Village
$1,048,000 $623 per SF 10.4.18 2017 3+4 TH 1681 SF 1640 SF 3 Siler Lake
$920,000 $471 per SF 09.05.18 2013 3+2 TH 1914 SF 2372 SF 2 Glassell Park
$1,025,000 $498 per SF 09.18.18 2018 3+3.5 TH 2055 SF 1311 SF 3 Highland Park
$1,100,000 $718 per SF 07.27.18 2018 3+3 TH 1530 SF 1651 SF 3 Echo Park
3116 Rivers Edge Ct, Los Angeles, CA 90039
2926 Rowena Ave #6, Los Angeles, CA 90039
3001 Peak Place, Los Angeles, CA 90065
5103 E. Echo Street, Los Angeles, CA 90042
1631 Preston Lane, Los Angeles, CA 90026
1 of 6 Small Lot Homes, balconies, 2 car garage, modern architecture, backyard, LEED platinum certified, 3 stories, views, built 2016
1 of 6 Small Lot Homes, roof deck, 2 car garage, 3 stories, modern architecture, outdoor patios, views, close to Drew Street2
3
4
5
6
1 of 33 Small Lot Homes, roof deck, balcony, smart home technology, Chef’s kitchen, 3 stories, 2 car garage, views
1 of 6 Small Lot Homes, Glassell Park, close to Drew Street, built 2013, resold in 2018, 2 stories, backyard, 2 car garage
1 of 6 Small Lot Homes, roof deck, views, outdoor patios, 2 car garage, 3 stories, modern architecture, large building
1 of 5 Small Lot Homes, technologically innovative features, modern architecture, 2 car garage, 3 stories, views
Address Sold Price Sold Price / SF Date Sold Year Built Unit Mix Building SF Lot SF Stories Submarket
# on Map
1
2
3
4
5
6
1
Address
$1,010,500 AVG $559/sf AVG
Sales Comparables Map
3243 Drew St.
1) 3540 La Clede Ave
2) 3116 Rivers Edge
4) 3001 Peak Place
5) 5103 E. Echo Park
6) 1631 Preston Ln.3) 2926 Rowena Ave
We sweat the details,
so you don’t have to.We Sweat the Details,So You Don’t Have To.
If you have additional questions, please contact:
Ben KreitenbergListing Agent
DRE: 02103370O: (310) 853-8769M: (818) [email protected]
Kenny StevensPrincipal
DRE: 01090251O: (310) 971-9935M: (310) [email protected]
