940 S Hill St 0.81 Acres of Commercial Land Offered at $17,950,000 in Los Angeles, CA 90015
INVESTMENT HIGHLIGHTS
- $511 PER LAND SF! Incredible development opportunity at the corner of Olympic & Hill in the center of Downtown Los Angeles
- $29,620 PER UNIT LAND COST — Build up to 606 units (assumes 80% efficiency and an average unit size of 600 SF
- RETAIL REDEVELOPMENT MODEL for build-to-suit achieves 6.39% YOC in 24 months with $200 PSF construction budget
- 13.0 BONUS F.A.R.! New Zoning Code going into effect January 27, 2025 allows for high-rise development with mixed commercial & residential uses
- PERMITTED USES with zoning include: high-density residential, supermarket, hospital, school, civic center, entertainment venue, medical office, etc
- ASSEMBLAGE POTENTIAL - Can be purchased with adjacent lot, the NWC of Olympic & Broadway, for a total land footprint of 55,749 SF
EXECUTIVE SUMMARY
Rooftop parking provides up to 75 spaces (83 spaces total) for a parking ratio of 3.4:1000. The property is eligible for AB 2097, which makes it exempt from the enforcement of parking ratio requirements by use. The existing building has a basement of approximately 8,500 SF, bringing the total RSF to ~33,000. There is an existing elevator (currently non-operable) that runs from the basement to the rooftop parking, along with a conveyor belt that services both floors. Existing power: 4000A (Supply), 1600A (Service), 208Y/120V, 3P 4W. The property is currently rented month-to-month by a parking operator paying $16,000 per month gross, and can be delivered vacant at close of escrow. An adjacent lot on the NWC of W Olympic Blvd and S Broadway is also available for sale and can be assembled with this lot for a larger development or to increase parking supply.
Three proposed development or redevelopment scenarios for the site:
Retail Build-to-Suit — Redevelopment for a single or multi-tenant retail center, such as for a supermarket/grocery operator. Please refer to the example retail model on pages 16 and 17 of the Offering Memorandum. The modeled scenario achieves a 6.39% trended yield on cost in 24 months with a $200 PSF construction budget and realistic lease-up time frame.
High-Rise Residential — Build 606 units, assuming an 80% efficiency, and an average unit size of 600 SF. This results in a land cost of only $29,620 per unit.
Mid-Rise Residential w/ Retail Podium — Build up to 250 units by building only 5 stories of Type IIIB construction over a retail podium. This results in a land cost of $71,800 per unit.
DATA ROOM Click Here to Access
- Offering Memorandum
PROPERTY FACTS
1 LOT AVAILABLE
Lot
| Price | $17,950,000 |
| Price Per AC | $22,285,291.46 |
| Lot Size | 0.81 AC |
228' x 154' commercial lot at NEC of W Olympic Blvd and S Hill St
DESCRIPTION
Saxum West is pleased to present for sale the NEC corner of Olympic & Hill in the center of Downtown LA, which features 35,086 SF of land with an existing 24,432 SF single-story (plus basement) retail structure with rooftop parking. This site has incredible potential, whether as a retail or medical office redevelopment, or as a high-rise residential project akin to the 60-story, 685-unit tower under construction directly across the street. The property will soon be benefiting from an up-zoning with the new Downtown Zoning Code (DTLA 2040) going into effect January 27, 2025, which allows for high-rise development on this site with a bonus FAR of 13.0. Rooftop parking provides up to 75 spaces (83 spaces total) for a parking ratio of 3.4:1000. The property is eligible for AB 2097, which makes it exempt from the enforcement of parking ratio requirements by use. The existing building has a basement of approximately 8,500 SF, bringing the total RSF to ~33,000. There is an existing elevator (currently non-operable) that runs from the basement to the rooftop parking, along with a conveyor belt that services both floors. Existing power: 4000A (Supply), 1600A (Service), 208Y/120V, 3P 4W. The property is currently rented month-to-month by a parking operator paying $16,000 per month gross, and can be delivered vacant at close of escrow. An adjacent lot on the NWC of W Olympic Blvd and S Broadway is also available for sale and can be assembled with this lot for a larger development or to increase parking supply. Two proposed development or redevelopment scenarios for the site: Retail Build-to-Suit — Redevelopment for a single or multi-tenant retail center, such as for a supermarket/grocery operator. Please refer to the example retail model on pages 16 and 17 of the Offering Memorandum. The modeled scenario achieves a 6.39% trended yield on cost, and a ~30% levered IRR in 24 months with a $200 PSF construction budget and realistic lease-up time frame. High-rise Residential — Build up to 445 units, resulting in a land cost of only $40,337 per unit. This assumes 75% efficiency and an average unit size of 800 SF. The site is also eligible for TOC Tier 3, ED-1, AB 2097 and AB 2334.
PROPERTY TAXES
| Parcel Number | 5139-003-017 | Improvements Assessment | $12,617 |
| Land Assessment | $12,233,776 | Total Assessment | $12,246,393 |
ZONING
| Zoning Code | [HM2-CHC1-5] [CX2-FA] (New zoning going into effect January 27, 2025. Mixed Commercial 2 - allows for commercial & high-density residential uses with a bonus FAR of 13.0) |
