SoldBroker Activity · Entry № 15

I Think This Might Be the Greatest ED1 Trade of All Time.

The City paid $16.7 million for one of the first completed ED1 projects in West Los Angeles. It may go down as the greatest ED1 trade of all time.

PublishedMay 29, 2026
STATUSSold · Closed May 21, 2026
DatelineWest Los Angeles, 90025
11418 Missouri Ave hero photo
FIG. 01, 11418 Missouri Ave, West Los Angeles. Sale closed May 21, 2026. Photo via Atlas Brief.
Four takeawaysFour things to dive into:
  1. He Had Two Ways to Win  The developer's plan was simple: if the City wanted the project, sell it. If not, lease it, stabilize it, and own a brand-new affordable housing asset in one of Los Angeles' strongest rental markets.  He was betting on West Los Angeles. 
  2. Being Early Was the Edge.The biggest advantage wasn't ED1, it was timing The developer moved before most investors understood the opportunity, acquired the land early. By the time everyone started chasing ED1, the best timing for this trade was already disappearing.  He capitalized on timing and acquired the land early, and executed while everyone else was acquiring and entitling .  
  3. Don't Build Hoping the City Buys It.This transaction will inspire a lot of developers.  That's dangerous.  A City acquisition should be treated as upside, not your business plan.  I think this is where people made the wrong calculations.  They though HACLA would come buy it or they would easily fill the entire building with section 8 vouchers. 
  4. No Parking Is Still a Risk.ED1 made it possible to build apartments without parking, but that doesn't mean it's easy to operate them.  I've had a hard time leasing units without parking, even in strong Los Angeles neighborhoods. For many renters, parking isn't a luxury - It is a MUST for them.  This project may have produced an exceptional outcome, but I wouldn't use it as proof that no-parking buildings are the future. Personally, I wouldn't build another project without parking unless the rents were priced at a significant discount. The operational headaches and leasing risk are simply too real.  Leasing a building with one or two less parking spots is one thing but leasing 44 units without parking could become a big headache.
Deal Stats · 11418 Missouri Ave
Sale Price
$16,650,000
closed May 21, 2026
Units
44
41 × 1-bed · 3 × 2-bed
Price / Unit
$378,409
per door
Price / SF
$972.49
on 17,121 GBA
CAP (Proforma)
3.08%
year-one, at close
NOI (Proforma)
$512,117
year-one projection
Year Built
2025
completed Sept 2025
Gross SF
17,121 SF
4 stories · 1 building
Lot SF
8,756 SF
0.20 AC · LA RD1.5-1
ULA Tax Est.
$915,750
Measure ULA, above threshold

What an Operator Sees

I remember talking with Kevin about this project long before construction was complete. His thesis was: if the City wanted to buy it, great. If not, he believed a new housing project in West Los Angeles could still produce attractive rents.   I think many investors made the mistake of underwriting a City purchase or assuming lease-up through the voucher program would be automatic.

This transaction shouldn't convince you to chase ED1. It should convince you to think about it more.  One more takeaway for me: parking still matters.

I've spent the last 13 years leasing apartments, and I've learned that no-parking buildings are much harder to operate than many pro formas suggest.

I track every multifamily sale in Los Angeles so you don't have to.   

If you found this useful, share it. 

Send OMs: David@AtlasBrief.LA 

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Brokers
Listing Broker
Kitty Wallace
Kitty Wallace
Colliers
Written from the field

David Safai, operator, developer, GC.

Atlas Home Builders, Inc. is a Los Angeles owner-operator and general contractor. If you are a broker with a listing you want an honest read on, send the OM and the T-12 to David@AtlasBrief.La.

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