10637 MOUNT GLEASON AVE, Sunland, CA, 91040

We are pleased to present 10637 Mount Gleason Ave in Sunland, CA. This listing is currently a 30,892 SqFt lot which has a single family house in the front. The seller has a tentative tract map to split the lot into 6 different small lots. The plan will be to keep the current house in place in the front, and then for the 5 other lots, a developer can build 5 single family homes. In the end, a savvy investor/developer will be able to have 5 brand new homes plus a fully renovated 1940s home on 6 different lots/APNs. Then, the developer can sell them off individually for a very strong projected profit.The list price of $1,900,000 is broken down into two sections: 1) the value of the single family house as-is, and 2) the value of the 5 lots that will be developed. The current house is 1,555 SqFt, 2 Bed / 1.75 Bath + a Bonus Room, and it was built in 1943. After the subdivision, the house will sit on a large 8,540 SqFt lot. After a detailed review of recent sale comparables in the area, we have found that older homes of around the same size are selling for about $650 per sqft on average, after being renovated. Using this average sale price/sqft, we can assume the post-renovation value of this house will be around $1.0M, plus or minus a bit. There is no doubt this older house needs some work, but with our current estimate of value at $700,000, the buyer of the property will have a lot of room to spend on improvements and still achieve a healthy profit. After subdividing into 6 separate lots, there will be 5 vacant lots to be developed into new construction single family homes. Per the Tentative Tract Map, the 5 lots will be an average of 4,502 SqFt each, and then a developer can build an average home size of 2,016 rentable SqFt. Per our research, we believe these 5 future new-construction homes will sell for an average of $1,200,000 each (about $600 per SqFt on average).Our current assigned value for these 5 lots is $1.2M, which means each lot has a value of $240,000. With the assumption that it will cost about $300 per SqFt to build, each house should be about $605,000 in development costs. All put together, if a developer sells each house for $1.20M on average, and the cost per lot is $845k on average (land cost + development cost), there will be over $350,000 in gross profit left over on each lot. In total, that is nearly $1.8M in gross profit available for all 5 lots combined.