Conversion of a 4-Unit Building into Condos in Hancock Park
Clients of The Bienstock Group bought a fourplex on Sycamore Ave in Hancock Park, turned it into condos, and made a nice profit. On October 27, 2011 clients bought the building at 114 N Sycamore for $1,500,000. Over the next two years – 2012 and 2013 – they did the legal and city work to turn the units into condos (requiring creating additional parking spots) and they also renovated the units (with our guidance.) At the beginning of 2014, we sold 3 of the units for around 900,000 each. The owners held on to the fourth unit. We sold the fourth unit in 2016 for $1,150,000. At each point of sale, the units sold very quickly with multiple offers.
A neighbor approached us and asked for guidance on doing the same with his four unit building in 2014 when we were selling the units. He started the process of turning his units into condos then. We will put his units up for sale as condos in the near future. He will be asking 1,275,000 for each unit. Our prediction is that the units will sell quickly and for his price.
The attraction of these condos to buyers is: 1. Low price of entry into the market in our area 2. Safety in living in a building with neighbors and secure access 3. Easy maintenance since the condos are just two beds and two baths and in remodeled move-right-in condition 4. Great location close to hot eateries and shopping venues.
Four unit buildings are the most in-demand properties in our area as income, investment, owner-user, or condo conversion opportunities. These buildings appreciate in value no matter the use.
At the Bienstock Group we love what we do, which is selling houses for top top dollar. We sold $97M in 2016. So far in 2017 we closed 41 transaction, year-to-date closed volume of $60M, we have $10M in escrow and we have $15M in active homes for sale.