FK Nursery Development Portfolio 9 Land Properties Offered at $40,498,277 CAD in Los Angeles, CA

DEVELOPERS DREAM-This is a once in a lifetime development opportunity located in the heart of the Sawtelle district of West Los Angeles. The offering consists of 9 parcels, all zoned LAR2, totaling approximately 111,311 sq. ft. 7 of the 9 parcels are contiguous, and the remaining 2 parcels are contiguous on the East side of Colby Ave. The largest of the 9 parcels (2020 Federal Ave.) runs block to block from Colby Ave. to Federal Ave. There are currently 5 single-family residences at the site (2024 Federal Ave., 2026 S. Colby Ave., 2045 S. Colby Ave., 2035 S. Colby Ave., and 2031 S. Colby Ave). The remaining 4 parcels are being utilized by F.K. Nursery, Inc., a family-owned and operated nursery business that has been a staple of the Sawtelle neighborhood since 1939. F.K. Nursery is truly a California landmark! The nursery is set to close operations in July of 2024. 2027 S. Colby Ave. is also a single-family residence that is currently being used as part of the F.K. Nursery business.
Rarely does a piece of residential land (LAR2) of this magnitude come along in one of Los Angeles’ most desirable westside neighborhoods. Over the past five years, there have been a number of new construction “two-on-a-lot” developments in the immediate vicinity of the subject properties. However, given the size of the contiguous properties, a developer should also be able to obtain bonus density and build a substantial number of for-sale townhomes on the property or large apartment building(s).
The subject properties are located between Federal Ave. and Colby Ave, South of La Grange Ave., and North of Mississippi Ave. The properties benefit from their unique location in the center of the Sawtelle district, less than half a mile from the historic Sawtelle Japan town. Sawtelle Blvd. is widely renowned as one of the best streets for food in all of Los Angeles, featuring a myriad of different restaurants including Tsujita LA, Chichikurin, Daikokuya, Menya Tigre, Sonoritas Prime Tacos, Hermanito, and many others. Due to the incredible restaurants, this area has some of the best foot traffic in all of Los Angeles. The properties also benefit from direct access to the 405 and 10 freeways which are located just minutes away, as well as the proximity to UCLA and the upscale Santa Monica shopping and beaches.
Included in this listing is the Offering Memorandum and a Feasibility Study, which includes a plat map with addresses, conducted by a top architecture firm, Ennead Architects, along with a corresponding Land Use Assessment prepared by Somos Law Group, who specializes in land use and real estate transactions.
Per Ennead’s Feasibility Study, a developer should be able to utilize the state density bonus incentives to build 58 for-sale townhomes, 6 of which would be affordable housing. The state density bonus might allow a developer to build under the R3 requirements (instead of R2 as currently zoned). Also included in the Feasibility Study is a potential Rezoning Strategy. This would entail taking the property from R2 to R4, which would allow for apartment building(s) of approximately 270 units, 40 of which would be affordable housing.
The asking price for the portfolio is $29,822,000, which is $267.92/sq. ft.
Given the incredible location of the portfolio and the unique opportunity to acquire just under 3 acres of residential land, we expect significant interest in this offering. As you know, there is a major need for housing in California and Los Angeles specifically, so this is the perfect climate to take advantage of significant bumps in density through state and local programs.