Shlomi Assis Acquires Development Site In North Hollywood For $5.4M

A development site located at 5554-5560 Klump Ave in the North Hollywood market has been sold in a closed transaction. The property spans an area of 0.5 acres and consists of three lots. The sale was an all-cash deal in the NoHo Arts District, with a sale price of $5,400,000. The buyer of the property was Shlomi Assis, while the seller was Shlomo Orlovich.

Summary of transaction details:

• Property Type: Development Site
• Transaction Amount: $5,400,000
• Address: 5554-5560 Klump Ave
• Market: North Hollywood

The brokers involved in the transaction were Filip Niculete, Glen Scher, and Jonathan Erster from the LAAA Team at Marcus & Millichap. The property, situated in an Opportunity Zone, offered attractive zoning incentives and had the potential for development of up to 96 units. The building square footage (BSF) was 76,800, resulting in a price per buildable square foot (PPBSF) of $70.

According to the broker's note, the development site was unentitled and comprised 12 units regulated under the Rent Stabilization Ordinance (RSO). The zoning for the property allowed for both C2 and R4 use, with a Transit Oriented Communities (TOC) Tier 3 designation. The favorable location within an Opportunity Zone and the property's potential for increased development capacity contributed to its sale at $5,400,000, with a land price of approximately $248.15 per square foot. The cost per buildable square foot was estimated at $100,000 (by-right) and $56,000 (with bonus).