Controlled Price Units (or CPU’s) are a unique feature to Playa Vista. In order to make some condos more affordable, approximately 1 out of 10 units in Playa Vista is designated as a CPU.
What this means is that from the time the unit was originally sold for the next 15 years, these properties are set at an below market, fixed price based on a formula tied to the consumer price index (essentially the rate of inflation). During this time there are no other restrictions on the use of the property and it may be re-sold, however not for more than the maximum fixed price at that time.
After 15 years from the first sale, the CPU tag comes off and the unit can be sold for market value. These properties are an incredible opportunity for first time buyers and people who may not be able to afford a regular property in Playa Vista to experience home ownership here. It is also an amazing investment, especially if held to the end of the CPU period, where you will automatically realize a large equity bonus. There is no set rule on how much below market CPU’s are priced, however recent sales have been about 25-30% below market. For this reason, and their relative scarcity, they are extremely popular and usually receive multiple offers when made available.
If you are interested in finding out more about available CPU’s and my strategies on how to make your offer stand out when outbidding your competition is not possible, please contact us.