Confidential Broker Opinion of Value
6860 Woodley Ave
Van Nuys, CA 91406
7Units
7,830Square Feet
1988Year Built
0.16Acres
Glen Scher
Glen Scher
Senior Managing Director Investments
Filip Niculete
Filip Niculete
Senior Managing Director Investments

Prepared Exclusively for Berkus Trust

March 2026

Team Track Record
LA Apartment Advisors at Marcus & Millichap
LAAA Team of Marcus & Millichap Expertise, Execution, Excellence.
456Closed Transactions
$1.45BTotal Sales Volume
4,170+Units Sold
34Median DOM
LAAA Closings Map

"We Didn't Invent Great Service, We Just Work Relentlessly to Provide It."

The LAAA Team at Marcus & Millichap has closed 456 transactions totaling $1.45 billion in sales volume, including 93 closings and $335 million in the San Fernando Valley and 32 closings totaling $107.7 million in Van Nuys specifically. This concentrated transaction history provides deep market intelligence on pricing trends, buyer demand, and achievable rent levels in the Van Nuys submarket.

Directly relevant to this offering, the LAAA Team sold 6551 Woodley Avenue - a 7-unit building on the same street with the same unit count as the subject - twice: first in 2017 at $1.3M and again in 2018 at $1.66M. The team also closed 7303 Woodley Avenue, providing additional corridor-specific pricing data. Among the sale comparables used in this analysis, 6716 Sylmar Avenue (12 units, $3.5M, May 2025) is an LAAA Team closing, giving us firsthand knowledge of buyer motivations, negotiation dynamics, and the final cap rate achieved in the Van Nuys multifamily market.

This depth of local transaction experience means the LAAA Team can position 6860 Woodley Avenue with precise market awareness, identify the right buyer pool from our proprietary database, and negotiate from a foundation of verified comparable data rather than estimates. For Woodley Avenue specifically, our repeat transaction history on the same corridor gives prospective buyers confidence in our pricing analysis.

Our Team
#1 Most Active Multifamily Sales Team in LA County
CoStar • 2019, 2020, 2021 • #4 in California
Glen Scher
Glen Scher
Senior Managing Director
Glen Scher is a Senior Managing Director at Marcus & Millichap and co-founder of the LAAA Team, one of Southern California's most active multifamily brokerage groups. A UC Santa Barbara graduate in Economics, Glen launched his career in 2014 and earned Rookie of the Year from the SFV Business Journal by 2016. A former Division I golfer, he captured three collegiate titles and was named UCSB Male Athlete of the Year. Glen has closed over 450 transactions totaling $1.4B+.
Filip Niculete
Filip Niculete
Senior Managing Director
Filip Niculete is a Senior Managing Director at Marcus & Millichap and co-founder of the LAAA Team. Born in Romania and raised in the San Fernando Valley, Filip studied Finance at San Diego State University and began his career at Marcus & Millichap in 2011. Known for execution, integrity, and relentless work ethic, Filip and the LAAA Team have closed over $1.4B in transactions and consistently lead the market in active inventory across the San Fernando Valley.
Aida Memary Scher
Aida Memary Scher
Senior Associate
Morgan Wetmore
Morgan Wetmore
Associate
Luka Leader
Luka Leader
Associate
Logan Ward
Logan Ward
Associate
Alexandro Tapia
Alexandro Tapia
Associate Investments
Blake Lewitt
Blake Lewitt
Associate Investments
Mike Palade
Mike Palade
Agent Assistant
Tony H. Dang
Tony H. Dang
Business Operations Manager
Key Achievements

Chairman's Club - a top-tier annual honor at Marcus & Millichap
National Achievement Award - Consistent top national performer
CoStar #1 Team - Most active multifamily sales team in LA County
456 Transactions - Over $1.45 billion in career sales volume
34-Day Median DOM - Properties sell faster than market average

As Featured In
Our Track Record in the San Fernando Valley
Exposed and Closed More Multifamily Deals Than Any Team in the Valley
93SFV Apartment Closings
$335M+SFV Sales Volume
32Van Nuys Closings
$107.7MVan Nuys Volume
DateAddressCity UnitsClose Price $/UnitNotes
5/2025 6716 Sylmar Ave LAAA COMP Van Nuys 12 $3,500,000 $291,667 LAAA Sale Comp
9/2025 5917 Buffalo Ave Van Nuys 5 $1,645,000 $329,000
12/2024 6228 Fulton Ave Van Nuys 30 $8,740,000 $291,333 On Fulton Ave
10/2024 11616 Burbank Blvd North Hollywood 21 $9,627,750 $458,464
10/2024 5630 Fair Ave North Hollywood 15 $7,625,000 $508,333
4/2024 7303 Woodley Ave Van Nuys 5 $950,000 $190,000 On Woodley Ave
4/2022 4838 Hazeltine Ave Sherman Oaks 16 $6,100,000 $381,250
12/2021 15716 Saticoy St Van Nuys 42 $14,200,000 $338,095
10/2021 13210 Victory Blvd Van Nuys 30 $5,635,000 $187,833
2/2020 14837 Delano St Van Nuys 8 $1,762,500 $220,312
3/2018 6551 Woodley Ave Van Nuys 7 $1,660,000 $237,143 On Woodley, 7 units
9/2017 6551 Woodley Ave Van Nuys 7 $1,300,000 $185,714 Same bldg, prior sale
10/2017 7453 Haskell Ave Van Nuys 10 $2,253,000 $225,300
8/2018 4522 Murietta Ave Van Nuys 13 $3,500,000 $269,231

Selected closings shown. Full track record available upon request.

Our Marketing Approach & Results
Data-Driven Marketing + Proven Performance
30K+Targeted Emails
10K+Listing Views
3.7Avg Offers / Listing
18Avg Days to Escrow
"We are PROACTIVE marketers, not reactive. Every listing gets a custom campaign designed to maximize exposure, create urgency, and drive competitive offers."

Direct Phone Outreach

  • 500+ targeted calls per listing
  • Focus: active buyers in submarket
  • Personal follow-up within 48 hours

Email Campaigns

  • 30,000+ qualified investor contacts
  • Segmented by geography and deal size
  • Multi-touch drip campaigns

Online Platforms

  • MarcusMillichap.com, CoStar, Crexi
  • LoopNet, CREXi, Ten-X
  • Custom property websites

Additional Channels

  • Office-wide agent blast (100+ agents)
  • Industry networking events
  • Strategic broker co-marketing
97.6%Avg SP/LP Ratio
21%Sold Above Ask
10Avg Day Contingency
61%1031 Exchange Buyers

Pricing Accuracy

  • 97.6% average sale-to-list ratio
  • 21% of listings sold above asking
  • Data-driven comp analysis

Marketing Speed

  • 18 average days to accepted offer
  • 34-day median days on market
  • Strategic pricing drives urgency

Contract Strength

  • 10-day average contingency period
  • Pre-qualified buyer verification
  • Streamlined due diligence process
  • 98% close rate on accepted offers

Exchange Expertise

  • 61% of buyers are 1031 exchangers
  • Dedicated exchange buyer database
  • Timeline management expertise
  • 85% higher cash flow for exchangers
Advertised On CREXI COSTAR LOOPNET ZILLOW REALTOR M&M APARTMENTS.COM REDFIN TEN-X
Investment Overview
Lake Balboa / Van Nuys - 6860 Woodley Ave
7Units
7,830Square Feet
0.16Lot Acres
1988Year Built

The LAAA Team is proud to present 6860 Woodley Avenue, a 7-unit multifamily property in the Lake Balboa neighborhood of Van Nuys. Built in 1988, the two-story building encompasses 7,830 square feet of rentable space on a 6,999-square-foot lot zoned [Q]R3-1. All seven units are 2-bedroom/2-bathroom flats averaging 1,119 square feet, offering a clean and uniform product type. The property is situated on a quiet residential stretch of Woodley Avenue, approximately one mile south of Van Nuys Airport and within walking distance of Lake Balboa Park.

The building's consistent unit mix makes it operationally straightforward, with individually metered gas and electric, no on-site manager requirement, and no pool or common laundry to maintain. As a post-1978 property, 6860 Woodley is exempt from the City of Los Angeles Rent Stabilization Ordinance, subject only to the statewide AB 1482 Tenant Protection Act. This regulatory status gives owners greater flexibility to adjust rents to market levels. Current rents range from $2,067 to $2,150 per month, well below the achievable market range of $2,400 to $2,600 for comparable 2-bedroom units on the Woodley Avenue corridor.

Lake Balboa offers stable renter demand driven by relative affordability compared to more central Valley submarkets. The subject's 18.5% rent upside from current to pro forma income presents a clear value-add opportunity for buyers seeking immediate cash flow improvement without capital renovation. The all-2BR/2BA format attracts a reliable tenant base of working professionals and families, and the 1,119-square-foot unit size is larger than most competing inventory on the corridor. At 100% occupancy with month-to-month leases on six of seven units, a new owner can begin implementing rent adjustments immediately upon close.

Property

Investment Highlights

  • Non-RSO / AB 1482 Only - Post-1978 construction (1988) exempts the property from the City of Los Angeles Rent Stabilization Ordinance, providing greater operational flexibility to adjust rents to market rates under statewide AB 1482 guidelines.
  • LAAA Team Comp Sales on Woodley Ave - The LAAA Team sold 6551 Woodley Ave (7 units) twice - in 2017 at $1.3M and again in 2018 at $1.66M - and also closed 7303 Woodley Ave and 6716 Sylmar Ave in the immediate area, providing direct pricing intelligence for this corridor.
  • 18.5% Rent Upside to Pro Forma - Current rents average $2,109/month across the seven units, compared to achievable market rents of $2,500/month. Six of seven tenants are on month-to-month leases, allowing a new owner to implement rent increases without waiting for lease expirations.
  • Clean All-2BR/2BA Product - All seven units are identically configured 2-bedroom/2-bathroom flats at approximately 1,119 square feet each, simplifying operations, marketing, and tenant turnover. The uniform mix eliminates unit-type discounting.
  • Lake Balboa Park Proximity - The property is located within walking distance of Lake Balboa Park, a 70-acre municipal park featuring the Anthony C. Beilenson Park lake, recreation facilities, and open space - a genuine quality-of-life amenity that supports tenant retention.
  • First Offering in 32 Years - The property has been held by the Berkus Trust since 1994 and is being offered for sale for the first time under current ownership, representing an estate disposition with no deferred maintenance from speculative value-add history.
Location Overview
Lake Balboa / Van Nuys - CA 91406

Lake Balboa is a residential neighborhood in the western San Fernando Valley, bordered by Van Nuys to the east and Encino to the south. The area is characterized by a mix of single-family homes and smaller multifamily buildings along its commercial corridors. Lake Balboa Regional Park, a 70-acre public park anchored by the Anthony C. Beilenson Park lake, serves as the neighborhood's primary amenity and distinguishes it from surrounding communities. The renter population skews toward working-class families and service-industry professionals who value the area's relative affordability compared to Sherman Oaks, Encino, and Valley Village.

The property is car-dependent, with a Walk Score of approximately 71. The Metro G Line (Orange Line BRT) Woodley Station is located roughly 1 to 2 miles south, providing bus rapid transit access to North Hollywood and the Red Line subway connection. Local bus routes 164 and 237 serve the Victory Boulevard and Woodley Avenue intersection. The Van Nuys FlyAway terminal at 7610 Woodley Avenue, approximately one mile north, offers direct bus service to LAX. The 405 Freeway is approximately one mile west, connecting residents to employment centers in West LA, the Westside, and the South Bay.

The Lake Balboa submarket benefits from limited new multifamily supply, as most development activity in Van Nuys concentrates along the Victory Boulevard and Van Nuys Boulevard corridors where TOC eligibility supports higher-density projects. Woodley Avenue's [Q]R3-1 zoning and airport hazard overlay (940-foot height limit) constrain new construction, which supports rent stability for existing product. Rentometer data shows a 2-bedroom median rent of $2,411 within a half-mile radius of the subject. The Van Nuys Airport Vision Study, a 20-year LAWA land use plan, is exploring noise mitigation and land-swap proposals that could improve the airport-adjacent corridor over time.

Location Details
Walk Score~71
Transit ScoreModerate (G Line BRT 1-2 mi south)
Nearest Metro StationG Line Woodley Station (~1-2 mi)
Nearest Freeway405 Freeway (~1 mi west)
FlyAway / LAX AccessVan Nuys FlyAway (~1 mi north)
Nearest ParkLake Balboa Park (70 acres, <1 mi)
Nearest GroceryAvailable on Victory Blvd corridor
Council District6
Median 2BR Rent (0.5 mi)$2,411 (Rentometer, 20 samples)
Renter Demand DriverAffordability vs. central SFV submarkets
Location Map
Property Details
6860 Woodley Ave, Van Nuys, CA 91406
Property Overview
Address6860 Woodley Ave, Van Nuys, CA 91406
APN2224-027-021
Year Built1988
Units7
Building SF7,830
Avg Unit SF~1,119
Stories2
ConstructionWood Frame / Stucco
Site & Zoning
Lot Size (SF)6,999
Lot Size (Acres)0.16
Zoning[Q]R3-1
TOC TierNot Eligible
Community PlanVan Nuys - North Sherman Oaks
Council District6
ParkingStandard surface (est. 14 spaces)
Building Systems & Capital Improvements
RoofStandard (age not verified)
PlumbingStandard (1988 original)
ElectricalStandard (1988 original)
HVACIndividual wall units (est.)
Water HeatersCentral boiler (owner-paid hot water)
LaundryNone on-site
WindowsStandard (1988 original)
Recent CapExNone reported - recommend DD verification
Regulatory & Compliance
Rent ControlNon-RSO (AB 1482 applies)
Just Cause EvictionYes (AB 1482)
Soft-Story RetrofitNot flagged
Airport Hazard ZoneYes - 940' height limit (Van Nuys Airport TSA)
ED1 EligibleYes
Buyer Profile & Anticipated Objections
Target Investors & Data-Backed Responses

Target Buyer Profile

Value-Add Investors

Buyers targeting the 18.5% rent upside from current to market rents. Six month-to-month leases allow immediate implementation. Non-RSO status provides the flexibility to move rents without CPI-based limitations.

1031 Exchange Buyers

Investors completing tax-deferred exchanges who need a stabilized asset with reliable cash flow. The 100% occupancy and $109,189 tax-adjusted NOI provide immediate income while the rent upside offers long-term growth.

Private / First-Time Investors

Individual buyers seeking a manageable 7-unit property that does not require an on-site manager. The simple all-2BR product type and individually metered utilities minimize operational complexity.

Long-Term Hold Investors

Buyers focused on basis and basis growth. The Prop 13 reassessment from the current $470K assessed value to the purchase price creates a known tax basis, and the clean product type requires minimal ongoing capital investment.

6860 Woodley Avenue offers a rare combination of clean product, non-RSO flexibility, and meaningful rent upside in a stable renter market, positioned at $285,714 per unit with direct LAAA Team comparable sales on the same street.

Anticipated Buyer Objections

"Q: The location is rated C- and sits in an airport hazard zone. How does this affect value?"

A: The airport hazard zone imposes a 940-foot height limit, which has no practical impact on a 2-story residential building. The C- location grade reflects car dependency and limited transit, not safety or structural concerns. Lake Balboa Park is a genuine amenity within walking distance, and the neighborhood's affordability drives consistent renter demand. The -2% airport adjustment has been applied to all comp-derived pricing.

"Q: Why are there only 2 Tier 1 comps for this property?"

A: The 7-unit size creates a naturally thinner comp pool, as most Van Nuys multifamily transactions involve 9-15 unit buildings. The two Tier 1 comps - 14121 Friar St (7 units, sold 12/2025 at $293K/unit) and 6234 Woodman Ave (9 units, sold 10/2025 at $294K/unit) - bracket the subject closely on size, vintage, and regulatory status. Four additional Tier 2 comps provide supporting validation.

"Q: The current cap rate is 5.46%. Is that competitive for a C- location?"

A: The 5.46% cap reflects current in-place rents that are 16-19% below market. The pro forma cap rate of 6.99% reflects the achievable income after rent adjustments. Buyers should evaluate on a stabilized basis. At $2M, the property offers immediate cash flow with clear upside, which is why 7-unit non-RSO buildings in Van Nuys trade at tighter going-in caps than larger stabilized assets.

"Q: How reliable is the $2,500/month pro forma rent?"

A: The $2,500 pro forma rent is supported by multiple data points. MLS leased comps show 7035 Woodley Ave (2/2, 906 SF, 1989) achieving $2,400/month for a smaller unit. Rentometer shows a $2,411 median for 2-bedrooms within 0.5 miles. Nearby 7025 Woodley Ave has achieved $2,427 to $2,530. The subject's 1,119-square-foot units are 15-24% larger than these comps, supporting the $2,500 target.

Property
Comparable Sales
Closed Multifamily Transactions
Sale Comps Map
#AddressUnitsYearSFPrice$/Unit$/SFCapGRMDateDOM
114121 Friar St, Van Nuys719986,526$2,050,000$292,857$3146.33%11.1x12/2025120
26234 Woodman Ave, Van Nuys919879,265$2,648,250$294,250$2865.12%11.7x10/202565
36716 Sylmar Ave, Van Nuys LAAA TEAM1219849,996$3,500,000$291,667$3506.34%10.2x5/202526
414239 Gilmore St, Van Nuys819866,224$1,737,500$217,188$2795.30%11.7x1/202611
514112 Delano St, Van Nuys519914,270$1,600,000$320,000$3756.61%12.8x3/202562
616731 Sherman Way, Van Nuys13198611,326$3,250,000$250,000$2876.63%10.1x9/202526
Average$2,464,292$277,660$3156.05%11.3x52
Median$2,349,125$292,262$3006.33%11.4x44
Tier 1 Average$293,554$3005.72%11.4x

6716 Sylmar Ave, Van Nuys (12 units, 1984) - LAAA Team Sale - Sold May 2025 for $3,500,000 ($291,667/unit, $350/SF). This all-2BR/2BA building is an LAAA Team closing, providing direct market intelligence. At 12 units, the building is 71% larger than the subject, warranting a +5% small-property premium adjustment. After applying the airport hazard discount (-2%), the adjusted value implies $300,417/unit. Classified as Tier 2 for Woodley due to the size differential, but the identical unit type and non-RSO status make it a strong supporting reference. The 94.6% SP/LP ratio reflects meaningful buyer negotiation leverage on larger assets.

14121 Friar St, Van Nuys (7 units, 1998) - Tier 1 - Sold December 2025 for $2,050,000 ($292,857/unit, $314/SF) at a 6.33% cap rate (verified). This is the strongest comp for the subject: identical unit count, identical all-2BR unit mix, and AB 1482-only regulatory status. The 10-year newer vintage warrants a -3% age adjustment, and the airport hazard zone adds a -2% discount, producing an adjusted $278,214/unit. At 2.8 months old with complete financial data, Friar establishes the floor of the Tier 1 range for 6860 Woodley.

6234 Woodman Ave, Van Nuys (9 units, 1987) - Tier 1 - Sold October 2025 for $2,648,250 ($294,250/unit, $286/SF) at a 5.12% cap rate (verified). Nearly identical vintage to the subject (1987 vs 1988), non-RSO, and predominantly 2BR. The slightly larger size (+2 units) and the airport hazard adjustment offset each other, producing a net 0% adjustment and an implied $294,250/unit for the subject. Woodman provides the ceiling of the Tier 1 range and validates the $286K/unit weighted average.

14239 Gilmore St, Van Nuys (8 units, 1986) - Tier 2 - Sold January 2026 for $1,737,500 ($217,188/unit) at a 5.30% cap rate (verified). Near-identical size and era, but the 1BA units and lower rent profile place this as a floor reference. Adjusted to $225,876/unit after accounting for the unit-quality differential.

14112 Delano St, Van Nuys (5 units, 1991) - Tier 2 - Sold March 2025 for $1,600,000 ($320,000/unit). A trust sale with unreliable expense data but useful $/unit reference. Adjusted to $297,600/unit after discounts for the smaller unit count premium offset and airport hazard zone. Provides an upper boundary reference.

16731 Sherman Way, Van Nuys (13 units, 1986) - Tier 2 - Sold September 2025 for $3,250,000 ($250,000/unit, $287/SF) at a 6.63% cap rate (verified). Lake Balboa location with complete financial data. The +86% size differential requires a +5% small-property premium, offset by the -2% airport hazard discount, yielding an adjusted $257,500/unit.

On-Market Comparables
Active Multifamily Listings
On-Market Comps Map
#AddressUnitsYearSFPrice$/Unit$/SFDOMNotes
17437 Haskell Ave, Van Nuys1019878,830$2,895,000$289,500$328--Active
213430 Victory Blvd, Van Nuys10200311,730$2,950,000$295,000$251--Active
314218 Victory Blvd, Van Nuys819887,960$3,579,000$447,375$450--Active

Three active listings provide current market context. 7437 Haskell Ave (10 units, 1987) is listed at $2,895,000 ($289,500/unit) - a similar vintage all-1BR building asking comparable $/unit to the subject. 13430 Victory Blvd (10 units, 2003) at $2,950,000 ($295,000/unit) is a heavy value-add with 57% rent upside. 14218 Victory Blvd (8 units, 1988) at $3,579,000 ($447,375/unit) represents the fully renovated ceiling for this vintage and product type, featuring in-unit laundry and tenant-paid utilities.

Rent Comparables
Active Rental Listings in Submarket
Rent Comps Map
#AddressTypeSFRent$/SFSource
17035 Woodley Ave #105, Van Nuys2/2906$2,400$2.65MLS Leased 10/2025
27025 Woodley Ave, Van Nuys2/2890$2,476$2.78Rentometer
37025 Woodley Ave, Van Nuys2/2824$2,427$2.95Rentometer
47025 Woodley Ave, Van Nuys2/21,110$2,530$2.28Rentometer
55821 Sylmar Ave #2, Van Nuys2/21,100$2,400$2.18MLS Leased 3/2026
66716 Sylmar Ave #204, Van Nuys2/2833$2,150$2.58MLS Leased 10/2025
77442 Hazeltine Ave #204, Van Nuys2/21,216$2,500$2.06MLS Leased 10/2025
86928 Woodley Ave #202, Van Nuys2/1800$2,300$2.88Rentometer
Financial Analysis
Investment Underwriting

Unit Mix & Rent Roll

UnitTypeSFCurrent RentRent/SFMarket RentMarket/SF
1012BD/2BA1,119$2,109$1.88$2,500$2.23
1022BD/2BA1,119$2,109$1.88$2,500$2.23
1032BD/2BA1,119$2,150$1.92$2,500$2.23
1042BD/2BA1,119$2,109$1.88$2,500$2.23
2012BD/2BA1,119$2,109$1.88$2,500$2.23
2022BD/2BA1,119$2,067$1.85$2,500$2.23
2032BD/2BA1,119$2,109$1.88$2,500$2.23
Total7 Units7,833$14,762$1.88$17,500$2.23

Operating Statement

IncomeAnnualPer Unit$/SF% EGI
Gross Scheduled Rent$177,144$25,306$22.62 -
Less: Vacancy (3%)$(5,314)$(759)$(0.68) -
Effective Gross Income$171,830$24,547$21.95100.0%
ExpensesAnnualPer Unit$/SF% EGI
Real Estate Taxes [1]$23,400$3,343$2.9913.6%
Insurance [2]$9,230$1,319$1.185.4%
Water / Sewer [3]$5,600$800$0.723.3%
Trash [4]$2,450$350$0.311.4%
Gas (Central Boiler) [5]$700$100$0.090.4%
Common Area Electric [6]$1,275$182$0.160.7%
Repairs & Maintenance [7]$8,400$1,200$1.074.9%
Contract Services [8]$1,500$214$0.190.9%
Administrative [9]$1,000$143$0.130.6%
Management Fee (4%) [10]$7,086$1,012$0.904.1%
Reserves [11]$1,750$250$0.221.0%
Other / Misc [12]$250$36$0.030.1%
Total Expenses$62,641$8,949$8.0036.5%
Net Operating Income$109,189$15,598$13.9463.5%

Notes to Operating Statement

[1] Real Estate Taxes: Placeholder at current assessed value ($470,290). Buyer Year 1 tax at $2M = $23,400 (1.17%).

[2] Insurance: (7 units x $200) + (7,830 SF x $1.00/SF) = $9,230.

[3] Water/Sewer: 14 bedrooms x $400/BD. Owner pays all water. No pool or laundry add-ons.

[4] Trash: 7 units x $350/unit (Tier 1 benchmark).

[5] Gas: Owner pays hot water via central boiler. Units individually metered for gas.

[6] Common Area Electric: 85% x $1,500 Tier 1 flat. No elevator or pool add-ons.

[7] Repairs & Maintenance: $1,200/unit x 7 units (Tier 1 benchmark). 1988 vintage, no pool.

[8] Contract Services: $1,500 flat (landscaping + cleaning).

[9] Administrative: $1,000 flat (Tier 1 benchmark).

[10] Management Fee: 4% of GSR. Current: 4% x $177,144 = $7,086. Pro Forma: 4% x $210,000 = $8,400.

[11] Reserves: $250/unit x 7 units (benchmark for 1980-1999 vintage).

[12] Other/Misc: $250 flat (Tier 1 benchmark).

Summary
OPERATING DATA
Price$2,000,000
Down Payment (40%)$800,000
Number of Units7
Price / Unit$285,714
Price / SF$255
Gross SF7,830
Lot Size6,999 SF (0.16 ac)
Year Built1988
ReturnsCurrentPro Forma
Cap Rate5.46%6.99%
GRM11.29x9.52x
Cash-on-Cash2.86%6.68%
DSCR1.26x1.62x
FINANCING
Loan Amount$1,200,000
Loan TypeFixed
Interest Rate6.00%
Amortization30 Years
Loan Constant7.19%
LTV (LTV)60.0%
DSCR1.26x
IncomeCurrentPro Forma
GSR$177,144$210,000
Vacancy (3%)$(5,314)$(6,300)
Other Income$0$0
EGI$171,830$203,700
Cash FlowCurrentPro Forma
NOI$109,189$139,745
Debt Service$(86,335)$(86,335)
Net Cash Flow$22,853$53,410
CoC Return2.86%6.68%
Principal Reduction$14,736$14,736
Total Return4.70%8.52%
EXPENSES
Real Estate Taxes$23,400
Insurance$9,230
Water / Sewer$5,600
Trash$2,450
Gas (Central Boiler)$700
Common Area Electric$1,275
Repairs & Maintenance$8,400
Contract Services$1,500
Administrative$1,000
Management Fee (4%)$7,086
Reserves$1,750
Other / Misc$250
Total Expenses$62,641
Suggested List Price
$2,000,000
$285,714Price / Unit
$255Price / SF
5.46%Current Cap Rate
11.29xCurrent GRM

Pricing Matrix

Purchase PriceCurrent CapPro Forma CapCash-on-Cash$/SF$/UnitPF GRM
$2,125,0005.07%6.51%2.32%$271$303,57110.12x
$2,100,0005.14%6.60%2.40%$268$300,00010.00x
$2,075,0005.22%6.69%2.49%$265$296,4299.88x
$2,050,0005.30%6.79%2.58%$262$292,8579.76x
$2,025,0005.38%6.89%2.68%$259$289,2869.64x
$2,000,0005.46%6.99%2.86%$255$285,7149.52x
$1,975,0005.54%7.09%3.07%$252$282,1439.40x
$1,950,0005.63%7.20%3.28%$249$278,5719.29x
$1,925,0005.72%7.31%3.50%$246$275,0009.17x
$1,900,0005.81%7.42%3.73%$243$271,4299.05x
$1,875,0005.90%7.53%3.96%$239$267,8578.93x
A TRADE PRICE IN THE CURRENT INVESTMENT ENVIRONMENT OF
$1,900,000 — $2,075,000

Pricing Rationale

Our suggested list price of $2,000,000 ($285,714/unit) is anchored by two primary comparable sales. 14121 Friar Street (7 units, December 2025) and 6234 Woodman Avenue (9 units, October 2025) produce a Tier 1 weighted average of $286,232/unit after adjustments for vintage, size, and the airport hazard zone. The Friar comp is particularly instructive: identical unit count, identical unit mix, and AB 1482 regulatory status, trading at $293K/unit just 2.8 months ago. Woodman confirms the range at $294K/unit with nearly identical vintage. Four Tier 2 comps spanning $226K to $300K/unit provide additional validation. The trade range of $1,900,000 to $2,075,000 ($271K to $296K/unit) reflects the spread between the income-derived floor ($1.875M at a tax-adjusted 5.90% cap) and the upper end of Tier 1 comp support. The GRM method independently produces $1.99M at an 11.25x multiple, converging tightly with the $/unit result. At the recommended price, the property delivers a 5.46% current cap rate (tax-adjusted) and a 6.99% pro forma cap on the achievable $210,000 GSR. Based on two primary comparable sales within a 5-month window, both with complete financial data and requiring minimal adjustments, we have support for this value range. The limited Tier 1 comp count (2 vs the ideal 3+) is offset by the quality of the matches: Friar is identical in size and product type, and Woodman is identical in vintage. The LAAA Team's direct transaction history on Woodley Avenue - including two closings at 6551 Woodley (same street, same unit count) and 6716 Sylmar Ave - provides corridor-specific intelligence that reinforces the pricing basis.

Assumptions & Conditions: All financial projections are estimates based on current market conditions and comparable data. Actual results may vary. Buyer should verify all information through independent due diligence. Property tax will reassess at the purchase price upon transfer of ownership. Pro forma rents reflect achievable market rates based on comparable leased transactions and are not guaranteed.
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