A development site in Silver Lake with plans for a 30-unit multifamily project has sold.
At the time of the sale, the double lot at 627 to 631 N. Dillon St. was vacant. It is already entitled for 30 residential units.
627 Dillon Associates and Galaxy Commercial Holdings sold the property to MDT Properties Inc. for $3.35 million.
Berkadia’s Adrienne Barr, Jim Fisher and Mike Smith represented the sellers in the transaction.
“There is tremendous demand for entitled sites in prime Los Angeles locations,” Barr said in a statement. “Silver Lake is in especially high demand as it has become the epicenter for a young, chic demographic searching for an urban lifestyle, and we see this reflected in rents for luxury apartments in the submarket, which can go over $4.50 per square foot.”
The current market rent per unit in Silver Lake is $1,998, according to CoStar Group Inc. data.
No new units are currently under construction, and no new units were absorbed in the market in the past year, according to CoStar.
The development site sale is one of the largest in the area in the past year, but there were a few other noteworthy sales as well.
In February, Cypress Equity Investments purchased land at 2231 W. Sunset Blvd. as a redevelopment opportunity for $16.4 million. The 1-acre property is zoned for 170 multifamily units and 10,000 square feet of retail.
And an individual purchased a portfolio over the summer for $6.3 million. The purchase included a restaurant, parking lot and five-unit multifamily building.