Prepared Exclusively for Ilan Gorodezki & Eyal Gamliel
I&L Investments and Management · July 2026
Since 2013, the LAAA Team has closed 460+ multifamily transactions totaling $1.47B+ in volume across Los Angeles, Ventura, and Santa Barbara counties - and today runs one of the most active development-land practices in the city. Current and recent land assignments include a 39-unit RTI site in Echo Park (2126 Branden St), a 121-unit mixed-income development site on Beverly Blvd, a 55-unit RTI ED1 site in Van Nuys, and a 105-unit near-RTI project in the San Gabriel Valley.
Our practice is built on disciplined underwriting, the deepest comparable-sales dataset in the submarket, and a marketing engine that reaches every active multifamily developer and investor in Los Angeles. We advise owners on when and how to sell - not just whether - and we price to clear, not to languish.
For 5600 Franklin Ave, that means a candid, numbers-first answer to the exact question ownership is weighing: build the project, or sell the site with plans - and if selling, at what price the RTI package clears in today's market.
• Chairman's Club - Marcus & Millichap's top-tier annual honor
• National Achievement Award - multiple years, both partners
• #1 Most Active Multifamily Team in LA County - CoStar 2019-2021
• Sales Recognition Award - every year since 2016
• 40+ transactions per year - one of SoCal's most active groups
5600 Franklin Ave (a.k.a. 1859 Garfield Place) is a fully entitled, ready-to-issue development site on the southwest corner of Franklin Avenue and Garfield Place in Franklin Village - the walkable retail-and-restaurant pocket on the Los Feliz edge of Hollywood, directly below the Hollywood Hills. The permit set was stamped by all departments on June 3, 2025 under case DIR-2020-3837-TOC-SPP-HCA.
The approved project is a four-story, 41-unit apartment building over one level of subterranean parking (41 spaces), with a recreation room, business center, and an outdoor pool and deck - designed by Sammie Tabrizi Architect. Ownership additionally plans to convert seven common-area spaces into 2BR/2BA ADUs in a concurrent phase, bringing the project to 48 units; the January 2026 Cushman & Wakefield bank appraisal values all 48.
The unit mix is unusually livable for the corridor: market-rate one-bedrooms average 848 SF with two baths, and studios average 710 SF - well above the 486-775 SF competitive range. Five units are reserved for extremely low-income households per the TOC Tier 3 entitlement. A construction loan has been approved, giving ownership a genuine choice: break ground, or sell the shovel-ready package.
Franklin Village is the boutique pocket of Hollywood that behaves like Los Feliz: a walkable strip of cafes, bookstores, and neighborhood restaurants along Franklin Avenue, framed by the Hollywood Hills to the north and the employment cores of Hollywood and Thai Town to the south. The subject sits on the corridor itself - a signalized corner with 190 feet of Franklin Avenue frontage and 100 feet on Garfield Place.
The renter profile is exactly the tenant this project is designed for: entertainment, media, and healthcare professionals who want new product with real square footage in a neighborhood setting. Within blocks are the Franklin Village retail strip, Gelson's, the 101 at Gower/Franklin, and the Hollywood Blvd and Sunset Blvd employment and nightlife corridors; Los Feliz Blvd and Griffith Park are minutes east.
Competitive new construction in the surrounding corridors - Gillis House, The 1860, The Louise 4850, Junction 4121 - is leasing studios at up to $4,270 and one-bedrooms at up to $3,779 on much smaller floor plans, which is precisely why the appraisal supports $3,900-$4,300 rents on the subject's oversized units.
| Location Details | |
|---|---|
| Neighborhood | Franklin Village / Los Feliz adjacent |
| Corner | SWC Franklin Ave & Garfield Pl |
| Frontage | 190 ft Franklin · 100 ft Garfield |
| ZIP | 90028 |
| Transit Context | TOC Tier 3 site; Metro B Line at Hollywood/Western ±0.5 mi |
| Freeway Access | US-101 at Gower / Franklin |
| Nearby Lease-Ups | Gillis House, The 1860, The Louise 4850 |
| Anchors | Franklin Village strip, Griffith Park, Hollywood core |
| Entitlement & Permits | |
|---|---|
| Status | RTI - permit set stamped by all departments 6/3/2025 |
| Planning Case | DIR-2020-3837-TOC-SPP-HCA |
| Building Permit App | 20010-10000-02776 |
| Program | TOC Tier 3 (R3-1, TOIA 2) |
| Affordable Set-Aside | 5 Extremely Low Income units |
| Tax Credits (LIHTC) | Not competitive — Low Resource area per the 2026 CTCAC/HCD Opportunity Map; outside HUD QCT/DDA |
| Architect | Sammie Tabrizi Architect, Encino |
| Site & Parcel | |
|---|---|
| APN | 5544-003-021 |
| Lot Size | 18,997 SF (0.44 ac), rectangular corner |
| Zoning | R3-1, TOC Tier 3, TOIA 2 |
| Current Improvements | ±1,900 SF auto center (MTM, $6,000/mo); balance vacant/cleared |
| Environmental | RWQCB UST case closure issued (low-threat closure) |
| Flood / Seismic | Zone X; Alquist-Priolo zone (new-code construction) |
| Approved Building | |
|---|---|
| Type | 4 stories over 1 subterranean level; Type V over podium |
| Gross Building Area | 44,366 SF |
| Net Rentable Area | 39,917 SF (48-unit program) |
| Parking | 41 garage spaces (0.90 / unit) |
| Amenities | Outdoor pool & deck, recreation room, business center |
| Fire / Life Safety | 100% sprinklered; passenger elevator |
| Ownership & Basis | |
|---|---|
| Owner Entities | LV/Soto LLC & 162-166 Douglas LLC |
| Acquired | 2019 - $3,300,000 |
| 2025/26 Assessed Value | $3,609,030 (taxes $44,646, current) |
| Construction Loan | Approved, not yet signed (per ownership) |
| Developer Budget | $17,497,600 (incl. $1.6M interest reserve) |
| Bank Appraisal | Cushman & Wakefield, report dated Jan 6, 2026 |
| Plan | Units | Avg SF | Total SF | Projected Rent | Rent / SF | Annual Income |
|---|---|---|---|---|---|---|
| Studio (market) | 4 | 710 | 2,840 | $3,900 | $5.49 | $187,200 |
| 1 BR / 2 BA (market) | 32 | 848 | 27,136 | $4,200 | $4.95 | $1,612,800 |
| Studio (ELI — Section 8) [S8] | 1 | 720 | 720 | $2,041 | $2.83 | $24,492 |
| 1 BR (ELI — Section 8) [S8] | 4 | 865 | 3,460 | $2,289 | $2.65 | $109,872 |
| 2 BR / 2 BA ADU (planned) | 7 | 823 | 5,761 | $4,300 | $5.22 | $361,200 |
| Total / Average | 48 | 832 | 39,917 | $3,985 avg | $4.79 | $2,295,564 |
[S8] The five ELI units are shown at Section 8 rents — studio $2,041 and 1BR $2,289, per the HACLA voucher payment standards schedule (effective 8/1/2025). Market rents per the Cushman & Wakefield appraisal (value date 11/3/2025) — intentionally below ownership's $4,300-$4,800 quoted rents on the studios/1BRs and above the $3,600 quoted on the ADUs. Note: C&W carried the affordable units at $2,800/month ($2,329,200 total GPI); its appraisal economics below rest on that basis, so the Section 8 basis shown here is the more conservative of the two.
Renderings are from the city-stamped permit set (Sheet R.1); aerial and site photographs from the January 2026 Cushman & Wakefield appraisal. Click any image to enlarge.
Ownership holds an approved construction loan and a fully stamped permit set, so all three paths below are genuinely available. The figures use the January 2026 Cushman & Wakefield appraisal (48-unit program) and ownership's own $17.5M project budget against the $3.3M land basis.
| # | Property | Status | Lot SF | Zoning | Unit Program | Price | $ / Land SF |
|---|---|---|---|---|---|---|---|
| S | 5600 Franklin Ave (subject) | Suggested list | 18,997 | R3-1, TOC Tier 3 | 48 (41 RTI + 7 ADU) | $4,500,000 | $237 |
| 1 | 4718-4726 Oakwood Ave, Los Angeles 90004 | Closed 2/27/2026 | ±22,310 | R3-1 | 128 (assisted living) | $4,700,000 | $211 |
| 2 | 4705-4709 Elmwood Ave, Los Angeles 90004 | Closed 11/10/2025 | 14,499 | C2-1 | ±40 (MIIP market-rate) | $3,050,000 | $210 |
| 3 | 4623-4631 Beverly Blvd, Los Angeles 90004 | In escrow · close sched. 7/17/2026 | 21,052 | C2-1 | 55 (MIIP market-rate) | $4,975,000 | $236 |
All three comparables are LAAA / Marcus & Millichap-controlled development-site transactions in the Beverly/Wilton corridor of 90004 — deals we know from the inside, not screen-scraped data. Oakwood (three parcels, R3-1 — the subject's zoning) closed February 27, 2026 at $4,700,000, or $211 per land SF, RTI for a 128-unit assisted-living (mental health) project — a ready-to-issue land print directly comparable to the subject's basis; Elmwood (two parcels, ED1 program for 103 units) closed November 10, 2025 at $3,050,000, or $210 per land SF, with the buyer planning approximately 40 market-rate units through MIIP; and Beverly (121 units maximum under MIIP) is in escrow at $4,975,000 ($236/SF), scheduled to close July 17, 2026, with the buyer planning to entitle a 55-unit market-rate project through MIIP. Against that $210–$236/SF band for sites still needing permits, the subject's suggested list works out to $237 per land SF with the entitlement work already done — stamped RTI plans, a bank appraisal in hand, and a Franklin Village corner location superior to the comp corridor. Lot areas per LA County assessor parcel geometry; pricing per LAAA transaction records and the listing brokers.
| Property | Address | Product | Current Asking | Notes |
|---|---|---|---|---|
| 5600 Franklin Ave (subject, proposed) | Franklin Ave & Garfield Pl | Studio · 1BR/2BA · 2BR ADU (832 SF avg) | $3,900–$4,300 | C&W projected market rents; 2027 delivery, pool & deck |
| Arrive Hollywood | 6201 Hollywood Blvd Photos | Studio–2BR | $2,121–$4,509 | Studios $2,189–$2,409 (563–624 SF) |
| El Centro Apartments & Bungalows | 6200 Hollywood Blvd Photos | Studio–2BR (577–1,309 SF) | $2,149–$3,850 | 1BR $2,538–$2,838 · 2BR $3,349–$3,850; up to 2 months free |
| Lumina Hollywood | 1522 Gordon St Photos | Studio–2BR (576–1,506 SF) | $2,254–$3,327 | Studios from $2,305 · 1BR from $2,505 |
| Sky Hollywood | 1550 N El Centro Ave Photos | 1BR–3BR penthouse | 2BR from $4,985 | Premium tower; the complex traded Apr 2026 ($99M) |
| Fusion Hollywood | 5750 Hollywood Blvd Photos | Studio–2BR+ (552–2,038 SF) | $2,300–$5,811 | Tower traded Aug 2025 ($73.9M) |
| Modera Argyle | 6220 Selma Ave Photos | 1BR–3BR | $2,659–$6,784 | 1BR from $2,600; up to 10 weeks free (lease-up) |
How to read this set: these are Hollywood's institutional elevator buildings — 200–300-unit towers leasing with heavy concessions (up to two months free at El Centro, ten weeks at Modera Argyle). Their entry studios set the market floor at $2,100–$2,400, while their larger and premium units clear $4,500–$6,800 per month — demonstrating deep renter demand at and above the subject's $3,900–$4,300 projected price points. The subject competes from a different position: boutique 48-unit scale, oversized floor plans (848 SF one-bedroom/two-bath layouts against the towers' typical 550–700 SF), and a Franklin Village address a block above the boulevard. The closest boutique benchmarks — Gillis House leasing 757 SF studios at $4,270 and The Louise 4850 achieving $3,779 one-bedrooms, both per the C&W survey — are the direct proof of the subject's rent basis. Askings surveyed July 2026 via the linked listings; concessions as advertised and subject to change.
The value of the RTI package rests on what the finished building is worth. The January 2026 Cushman & Wakefield appraisal - commissioned by Israel Discount Bank for the construction loan - concluded:
| Line Item | Annual | Per Unit | % of EGI |
|---|---|---|---|
| Potential Gross Revenue (net of non-revenue units) | $2,337,523 | $48,698 | — |
| Vacancy & Collection Loss (7.0%) | ($163,627) | ($3,409) | — |
| Effective Gross Revenue | $2,173,897 | $45,290 | 100.0% |
| Operating Expenses | ($454,775) | ($9,474) | 20.9% |
| Real Estate Taxes | ($306,950) | ($6,395) | 14.1% |
| Net Operating Income (stabilized) | $1,412,172 | $29,420 | 65.0% |
| Property | Built | Units | Bldg SF | Sale Date | Sale Price | $ / Unit | $ / SF | Dist. |
|---|---|---|---|---|---|---|---|---|
| The Sophia Hollywood · 1759 N Gower St (4.70% actual cap) | 2024 | 28 | ±40,332 | May-26 | $15,900,000 | $567,857 | $394 | 0.4 mi |
| The Baxter · 1818 N Cherokee Ave (5.50% actual cap) | 2024 | 86 | 85,770 | Apr-26 | $33,884,000 | $394,000 | $395 | 1.1 mi |
2026 sales of 2024-vintage new construction in the Hollywood submarket, per CoStar (price status confirmed on both; actual cap rates shown). The Sophia Hollywood is the closest analog to the subject's program — 28-unit boutique product four blocks west on the same Franklin corridor — at $567,857/unit, $394/SF, and a 4.70% actual cap. The Baxter (86 larger-format units, 997 SF average) printed $394,000/unit at $395/SF and a 5.50% actual cap — the exact cap rate C&W applied to the subject. Together they bracket C&W's conclusion of $525,000/unit stabilized ($25.2M) at 5.50% for the subject's brand-new 2027 delivery, with The Sophia clearing 8% above it on a per-unit basis. C&W's final reconciliation blended the sales, income ($25.7M), and cost ($23.0M) approaches.
"Are the rents believable?"
C&W already stress-tested them: ownership quoted $4,300-$4,800 on studios/1BRs, and the appraisal cut those to $3,900-$4,200 against eight surveyed lease-ups - then still concluded $24.1M at completion. The underwriting a buyer inherits is the conservative version.
"Would an affordable / LIHTC developer pay more?"
No - and that sharpens the buyer profile rather than hurting it. The site scores Low Resource on the 2026 CTCAC/HCD Opportunity (AFFH) Map and sits outside any HUD QCT/DDA, so it cannot compete for 9% credits and gets no basis boost on 4% deals. This is a market-rate TOC site: the five ELI units already satisfy the set-aside, and the marketing targets market-rate developers - the pool that pays the most for this corner.
"Alquist-Priolo fault zone?"
Disclosed and appraised: C&W notes market behavior shows no measurable value impact, and the project is new, fully sprinklered, current-code construction - the safest possible profile for the designation.
"Why is the owner selling a shovel-ready deal?"
This is an allocation decision, not distress: the construction loan is approved and ownership can build. They are weighing a clean, ULA-free land exit at a 30-36% gain against 21 months of construction and lease-up. A buyer should read that as optionality, not weakness - and move before ownership elects to break ground.
The recommendation is anchored to two independent supports. First, the bank's own appraisal: Cushman & Wakefield concluded an as-is value of $4,600,000 ($95,833 per unit on the 48-unit program) as of November 3, 2025, from an adjusted entitled-land comp range of $90,866-$101,864 per unit. Applied to 48 units, that adjusted range brackets $4.36M-$4.89M - the $4,500,000 list sits inside it, priced deliberately just below the appraised value so the deal reads as validated by the bank's own number and generates competition rather than market time. Second, the finished-product math: at $4,500,000 the land represents under 19% of the $24.1M completed value, a conventional land ratio for LA TOC development, and a buyer inheriting the stamped set skips 3-5 years of entitlement time and cost - the scarcest commodity in this cycle.
Two structural features protect seller economics at this price point. The sale stays below the $5,150,000 Measure ULA threshold, so the exit pays only the 0.56% documentary transfer tax - no 4% ULA hit. And the package sells at peak readiness: plans stamped June 2025, a January 2026 institutional appraisal in hand, and environmental case closure issued. Every month of delay ages the set and invites re-pricing of construction costs.
Marketing posture. We recommend a targeted-then-open campaign: a 7-14 day pre-launch to LAAA's developer and TOC-buyer database - the builders who already know this corridor - followed by full open-market exposure across all ten platforms. C&W's 4-8 month exposure estimate is consistent with our experience on comparable RTI sites; a credible pre-emptive offer inside the trade range can and should be taken.
Below is our current land & development inventory as shown on www.laaa.com — the same buyer pool actively bidding these sites will be the audience for 5600 Franklin Ave.
| Address | City | Buildable Units | Price | Status |
|---|---|---|---|---|
| 3219-3249 Overland Ave | Los Angeles | 100 | $11,995,000 | Available |
| 5151 E Arrow Hwy | Montclair | 300 | $10,500,000 | Available |
| 1120-1164 W Sunset Blvd | Los Angeles | 237 | $9,000,000 | In Escrow |
| 5511 Ethel Ave | Sherman Oaks | 199 | $9,000,000 | Available |
| 185 Monterey Rd | South Pasadena | 53 | $8,000,000 | Available |
| 2600 S Robertson Blvd | Los Angeles | 149 | $7,995,000 | Available |
| 4623-4631 Beverly Blvd | Los Angeles | 121 | $5,250,000 | In Escrow |
| 12335 Osborne Pl | Pacoima | 293 | $4,250,000 | Available |
| 601 Pearl Street | Ojai | 9 homes | $3,700,000 | Available |
| 1656 Sawtelle Blvd | Los Angeles | 38 | $2,995,000 | Available |
| 10425 Independence Ave | Chatsworth | 8 homes | $2,500,000 | In Escrow |
| 10898 Olinda St | Sun Valley | 78 | $2,500,000 | Available |
| 6540 Shoup Ave | West Hills | 10 homes | $2,000,000 | Available |
| 5321 Riverton Ave | North Hollywood | 27 | $2,000,000 | Available |
| 3837 College Ave | Culver City | 21 | $1,800,000 | Available |
| 631-637 W 6th Street | San Pedro | 10 homes | $1,725,000 | Available |
| 6901 Woodman Avenue | Van Nuys | 55 | $1,500,000 | Available |
17 active land & development listings totaling ≈$87M as of July 14, 2026. Source: www.laaa.com — live inventory updates there.