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.
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• 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 |
| 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 | C&W Market 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 affordable) | 1 | 720 | 720 | $2,800 | $3.89 | $33,600 |
| 1 BR (ELI affordable) | 4 | 865 | 3,460 | $2,800 | $3.24 | $134,400 |
| 2 BR / 2 BA ADU (planned) | 7 | 823 | 5,761 | $4,300 | $5.22 | $361,200 |
| Total / Average | 48 | 832 | 39,917 | $4,044 avg | $4.86 | $2,329,200 |
Unit mix and market rents per the Cushman & Wakefield appraisal (value date 11/3/2025). C&W's rents are intentionally below ownership's $4,300-$4,800 quoted rents for the studios/1BRs and above the $3,600 quoted on the ADUs - a bank-appraisal basis a buyer will treat as credible.
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 | Site SF | Units | Zoning | Sale Date | Sale Price | $ / Unit | Adj. $ / Unit |
|---|---|---|---|---|---|---|---|---|
| S | 5600 Franklin Ave (subject) | 18,997 | 48 | R3-1, TOC 3 | — | — | — | — |
| 1 | 4136 Rosewood Ave, Los Angeles | 9,902 | 16 | R4-1 | Feb-24 | $1,460,000 | $91,250 | $96,615 |
| 2 | 2771 Rowena Ave, Los Angeles (Silver Lake) | 12,876 | 39 | C4-1D | Sep-23 | $3,450,000 | $88,462 | $90,866 |
| 3 | 1838 S Brand Blvd, Glendale | 27,595 | 80 | SFMU | Aug-22 | $8,080,000 | $101,000 | $101,853 |
| 4 | 4100 Melrose Ave, Los Angeles | 15,004 | 33 | C2-1 | Jul-22 | $3,850,000 | $116,667 | $101,864 |
| Adjusted range (C&W) · concluded $95,000/unit × 48 units | → $4,600,000 | $88,462–$116,667 | $90,866–$101,864 | |||||
Comparables, adjustments, and conclusion per the Cushman & Wakefield appraisal (Land Valuation section, value date 11/3/2025). Adjusted values reflect C&W's market-condition, location, and zoning adjustments; C&W weighted Sale 1 (most recent) most heavily.
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 | Avg Unit SF | Sale Date | Sale Price | $ / Unit | Cap |
|---|---|---|---|---|---|---|---|
| Oakwood Larchmont Village · 4804 Oakwood Ave | 2022 | 30 | 805 | Mar-24 | $13,350,000 | $445,000 | 5.21% |
| 552 Hobart · 552 N Hobart Blvd | 2021 | 26 | 920 | Oct-22 | $13,700,000 | $526,923 | 4.01% |
| Macro at Echo · 706 N Alvarado St | 2020 | 34 | 561 | Jan-22 | $14,600,000 | $429,412 | 4.20% |
| 552 Hobart · 552 N Hobart Blvd (prior sale) | 2021 | 26 | 920 | Jan-22 | $13,000,000 | $500,000 | 4.20% |
| Adjusted $480,339–$527,294/unit · C&W concluded $525,000/unit stabilized | → $25,200,000 | $508,642 avg | — | ||||
Sales and adjustments per the C&W Sales Comparison Approach (adjusted to the April 2028 stabilization date). C&W's final reconciliation blended the sales, income ($25.7M), and cost ($23.0M) approaches.
"The 7 ADUs aren't permitted yet."
Correct - the RTI covers 41 units. Converting common-area space to ADUs during or after construction is standard LA practice, and the bank's own appraisal valued the project on all 48 units under exactly that assumption. The ADU upside is real but the entitled 41 stand on their own.
"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.
"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 30-45% 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 list price sits inside the upper half of it, and the expected trade range sits squarely on the appraised value. Second, the finished-product math: at $4,750,000 the land represents just under 20% 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.