Confidential Broker Opinion of Value
6034 Fulton Ave
Van Nuys, CA 91401
12Units
9,614Square Feet
1990Year Built
0.20Acres
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 is one of the San Fernando Valley's most active multifamily brokerage groups, with 456 closings totaling $1.45 billion in career sales volume. In the San Fernando Valley alone, the team has completed 93 transactions representing $335 million in total value. In Van Nuys specifically, the LAAA Team has closed 32 deals totaling $107.7 million, establishing deep market intelligence and an extensive buyer network for this submarket.

The LAAA Team's direct transactional experience on Fulton Avenue and in the immediate submarket provides a distinct pricing advantage for this offering. The team represented the sale of 6716 Sylmar Avenue - a 12-unit non-RSO property that closed at $3.5M ($291,667/unit) in May 2025 - which serves as the highest-weighted comparable for the subject. The team also closed 6228 Fulton Avenue, a 30-unit property on Fulton Avenue itself, demonstrating established credibility and buyer relationships on this specific corridor.

With active buyer relationships cultivated through 32 Van Nuys closings and current market intelligence from the Sylmar and Fulton Avenue transactions, the LAAA Team is uniquely positioned to identify qualified buyers, generate competitive offers, and execute a transaction at the property's full market value. The team's institutional knowledge of this corridor - including achievable rents, buyer cap rate expectations, and lender appetite - translates directly into pricing confidence and execution certainty.

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
Valley Glen / Van Nuys - 6034 Fulton Ave
12Units
9,614Square Feet
0.20Lot Acres
1990Year Built

The LAAA Team is proud to present 6034 Fulton Avenue, a 12-unit multifamily property located on a quiet residential block in the Valley Glen / Van Nuys border submarket of the San Fernando Valley. Built in 1990, the two-story building encompasses 9,614 square feet of rentable area on an 8,540 square-foot lot zoned R3-1. The property features a diverse unit mix of four 1-bedroom/1-bath flats, four 1-bedroom-plus-loft/1-bath units, and four 2-bedroom/2-bath flats, offering functional layouts ranging from 650 to 904 square feet.

The property is exempt from the City of Los Angeles Rent Stabilization Ordinance (RSO), subject only to AB 1482 (the California Tenant Protection Act), which allows annual rent increases of 5% plus CPI. All 12 units are individually metered for gas and electric, with the owner responsible only for cold water and central boiler hot water. The diverse unit mix appeals to a broad tenant pool - from singles and students (Valley College is 0.5 miles away) to couples and small families - supporting stable occupancy and organic demand throughout market cycles.

With in-place rents averaging $2,029 per month and achievable market rents of $2,233 per month, the property presents a 10.1% rent upside opportunity for a new buyer. The 30-year ownership under the Berkus Estate represents the first offering of this asset since 1996, positioning it as a rare acquisition opportunity in a supply-constrained corridor. TOC Tier 3 eligibility provides additional long-term density bonus potential for a future development play, adding strategic optionality beyond the near-term income upside.

Property

Investment Highlights

  • Non-RSO / AB 1482 Only - Exempt from the City of LA's Rent Stabilization Ordinance. Rents are governed solely by AB 1482 (5% + CPI annual increases), giving owners maximum flexibility to capture market rent growth without LAHD registration or annual rent adjustment limitations.
  • LAAA Team Comp Intelligence - The LAAA Team closed 6716 Sylmar Avenue - a 12-unit non-RSO property in Van Nuys 91405 - for $3.5M ($291,667/unit) in May 2025. This direct transaction experience provides firsthand pricing intelligence on the subject's exact submarket and product type. Additionally, the LAAA Team represented the sale of 6228 Fulton Avenue, a 30-unit property on Fulton Avenue itself.
  • 10.1% Rent Upside - Current rents average $2,029/month across all unit types. Market rents supported by direct MLS leased comps on Fulton Avenue - including 6202 Fulton at $2,500 for a 2/2 (leased 3/22/2026, one block away) and 6212 Fulton at $2,745-$2,795 for 2/2 units - indicate achievable pro forma rents of $1,950 (1BR), $2,250 (loft), and $2,500 (2BR).
  • Diverse Unit Mix - The property offers three distinct floor plans across 12 units: 1-bedroom flats (650 SF), 1-bedroom-plus-loft units (850 SF), and 2-bedroom/2-bath flats (904 SF). This variety creates natural tenant segmentation, reduces concentration risk, and supports strong occupancy across multiple renter demographics.
  • First Offering in 30 Years - Acquired in 1996 as an REO sale and held continuously by the Berkus Estate, this property has never been offered for sale on the open market. Estate-held assets in supply-constrained corridors represent rare acquisition opportunities that attract a wide buyer pool.
Location Overview
Valley Glen / Van Nuys - CA 91401

6034 Fulton Avenue is situated on a mid-block residential stretch in the Valley Glen / Van Nuys border area of the central San Fernando Valley. The immediate neighborhood is characterized by dense apartment buildings from the 1980s and 1990s, interspersed with single-family homes. Valley Glen's residential branding - distinct from the Van Nuys 91401 zip code - offers a quieter, neighborhood-oriented environment compared to the commercial arterials of Sherman Way or Victory Boulevard. The block benefits from a stable renter base drawn by relative affordability and central Valley access.

The property is approximately 0.5 miles from Los Angeles Valley College, providing a consistent source of student and faculty housing demand. Commuter access is strong via the 405 Freeway (1.5 miles west) and the 101 Freeway (2 miles south). Metro bus routes 164 and 165 serve the Victory/Fulton corridor, and the Metro G Line (Orange Line) has a temporary stop at Oxnard Street approximately 0.7 miles south during the East San Fernando Valley Light Rail Transit construction. Major employment centers in Burbank, Warner Center, and the Sepulveda Pass corridor are all within a 15-minute drive.

The central San Fernando Valley multifamily market continues to benefit from significant infrastructure investment. The East SFV Light Rail Transit project will add fixed-rail service along Van Nuys Boulevard, and the Sepulveda Transit Corridor is advancing toward construction. New Class A apartment deliveries such as the 405-unit project at 6728 Sepulveda Boulevard (expected January 2027) target a higher price point that does not directly compete with the subject's Class B positioning. Rentometer data shows a 1-bedroom median of $1,985 and a 2-bedroom median of $2,400 within 0.75 miles, confirming strong achievable rents in this corridor.

Location Details
Walk Score~71 (Very Walkable)
Nearest Metro/BusRoutes 164, 165 at Victory/Fulton
Metro G Line~0.7 mi (Oxnard temporary stop)
Nearest FreewayUS-101 (~2 mi) / I-405 (~1.5 mi)
Valley College0.5 mi
Nearest GroceryRalphs (Victory Blvd, ~0.6 mi)
Nearest ParkValley Glen Community Park (~0.3 mi)
Hazard ZoneLiquefaction Zone (NHD disclosure)
Median HH Income~$55,000 (Van Nuys 91401)
Renter %~72%
Location Map
Property Details
6034 Fulton Ave, Van Nuys, CA 91401
Property Overview
Address6034 Fulton Ave, Van Nuys, CA 91401
APN2331-028-012
Year Built1990
Number of Units12
Building SF9,614 SF
Average Unit SF801 SF
Stories2
ConstructionWood Frame / Stucco
Site & Zoning
Lot Size (SF)8,540 SF
Lot Size (Acres)0.20 Acres
ZoningR3-1
TOC TierTier 3
TOIAArea 2
Community PlanVan Nuys - North Sherman Oaks
ParkingSurface (count TBD - verify)
Building Systems & Capital Improvements
RoofFlat / built-up (age unknown)
PlumbingCopper (original 1990)
Electrical200A (standard for vintage)
HVACWall units (individual)
Water HeatersCentral boiler (owner pays gas)
LaundryNone confirmed on-site
MeteringIndividual gas & electric
Recent CapExNone reported
Regulatory & Compliance
Rent ControlNOT RSO (built 1990, post-1978)
Just CauseYes (AB 1482 applies)
AB 1482Subject to CA Tenant Protection Act
Soft-Story RetrofitNot applicable (post-1978)
Code Enforcement4 cases + 2 retrofit items (status unverified)
Buyer Profile & Anticipated Objections
Target Investors & Data-Backed Responses

Target Buyer Profile

Value-Add Investors

Operators targeting the 10.1% rent upside from legacy below-market rents. The non-RSO status allows immediate rent adjustments to market levels upon lease expiration without regulatory constraints.

1031 Exchange Buyers

Investors executing tax-deferred exchanges seeking a stabilized, fully occupied 12-unit property in a proven Van Nuys corridor. The $3.0M-$3.25M trade range accommodates common exchange price points.

Long-Term Hold Investors

Buyers seeking steady cash flow from a 1990-vintage asset with individually metered utilities, no pool maintenance, and TOC Tier 3 density bonus optionality for future redevelopment.

First-Time Apartment Buyers

Investors moving up from duplexes or fourplexes into their first 12-unit building. The diverse unit mix and non-RSO regulatory environment reduce operational complexity.

6034 Fulton Avenue combines the stability of a fully occupied, non-RSO 12-unit asset with meaningful rent upside and a first-time market offering from a 30-year estate hold - a rare combination in the supply-constrained Valley Glen / Van Nuys corridor.

Anticipated Buyer Objections

"Q: The property is in a liquefaction zone. How does that affect value?"

A: The liquefaction designation applies to a broad swath of the San Fernando Valley floor - including many of the comparable sales used in this analysis. The -2% adjustment applied across all comps reflects the standard market discount. Buyers should budget for earthquake insurance (typically $0.25-$0.50/SF annually) and conduct a Phase I environmental review during due diligence.

"Q: With 8 of 12 units being 1-bedroom or loft, isn't the income potential lower?"

A: The 1BR-heavy unit mix generates lower gross rent per unit compared to all-2BR buildings, which is reflected in the 3%-5% unit mix discount applied to comparable sales. However, this mix broadens the tenant pool (students, singles, young professionals) and supports faster lease-up. Rentometer shows 1BR median of $1,985 within 0.75 miles, confirming strong demand for smaller units in this submarket.

"Q: There are code enforcement cases on file. Is this a risk?"

A: Four code enforcement cases and two retrofit items are on file with the City. Status is unverified. Buyers should request case status from LADBS during due diligence. Common items for 1990-vintage properties include minor habitability or maintenance issues. We recommend budgeting $5,000-$15,000 for potential resolution depending on case severity.

"Q: How confident are you in the list price?"

A: Three independent valuation methods - $/unit ($3.13M), GRM ($3.14M), and cap rate at 3% vacancy ($3.23M) - converge tightly around the $3.15M list price. The Tier 1 comp-derived weighted average of $260,760/unit aligns closely with the $262,500/unit asking price. The LAAA Team's direct sale of 6716 Sylmar (12 units, $291,667/unit) provides firsthand pricing validation.

Property
Comparable Sales
Closed Multifamily Transactions
Sale Comps Map
#AddressUnitsYearSFPrice$/Unit$/SFCapGRMDateDOM
36716 Sylmar Ave, Van Nuys LAAA TEAM1219849,996$3,500,000$291,667$3506.34%10.2x05/202526
16234 Woodman Ave, Van Nuys919879,265$2,648,250$294,250$2865.12%11.7x10/202565
216731 Sherman Way, Van Nuys13198611,326$3,250,000$250,000$2876.63%10.1x09/202526
414239 Gilmore St, Van Nuys819866,224$1,737,500$217,188$2795.30%11.7x01/202611
514121 Friar St, Van Nuys719986,526$2,050,000$292,857$3146.33%11.1x12/2025120
66606 Hazeltine Ave, Van Nuys13200114,943$3,600,000$276,923$2415.96%10.3x06/20250
76924 Vesper Ave, Van Nuys141991--$4,100,000$292,857------11/2024--
86451 Kester Ave, Van Nuys14198813,650$4,680,000$334,286$3435.66%11.2x07/202548
Average$3,195,719$281,254$3005.91%10.9x42
Median$3,375,000$292,262$2875.96%11.1x26
Tier 1 Average$278,639$3086.03%10.7x

6234 Woodman Ave, Van Nuys -- 9 units, built 1987, sold October 2025 for $2,648,250 ($294,250/unit, $286/SF). This non-RSO property traded at a 5.12% cap rate and 11.72 GRM with a mixed 1BR/2BR unit configuration similar to the subject. At $294,250/unit, Woodman represents the strongest direct comparable. Adjusting downward for the subject's 1BR-heavy unit mix (-3%), size differential (-2%), and liquefaction zone (-2%), this comp implies $273,653/unit for the subject, or $3.28M total - providing support for the upper end of the trade range.

16731 Sherman Way, Van Nuys -- 13 units, built 1986, sold September 2025 for $3,250,000 ($250,000/unit, $287/SF). This same-era property traded at a 6.63% cap rate and 10.11 GRM with 26 days on market. The comp's mixed 1BR/2BR/3BR unit configuration parallels the subject's diversity. Adjusting for the subject's 1BR-heavy mix (-3%) and liquefaction zone (-2%), offset by a marginal size premium (+1%), the implied value is $240,000/unit - anchoring the floor of the trade range at $2.88M.

6716 Sylmar Ave, Van Nuys LAAA Team Sale -- 12 units, built 1984, sold May 2025 for $3,500,000 ($291,667/unit, $350/SF). This LAAA Team transaction provides direct pricing intelligence: identical unit count, non-RSO status confirmed, and located within Van Nuys 91405. The property traded at a verified 6.34% cap rate (versus 6.00% stated at list) after selling at 94.6% of asking price. Adjusting for Sylmar's all-2BR configuration versus the subject's 1BR-heavy mix (-5%) and liquefaction zone (-2%), the implied value is $271,250/unit ($3.26M). The LAAA Team's firsthand knowledge of this transaction's pricing dynamics and buyer pool directly informs the subject's marketing strategy.

14239 Gilmore St, Van Nuys -- 8 units, built 1986, sold January 2026 for $1,737,500 ($217,188/unit, $279/SF). The most recent sale in the comp set, closing just 2.3 months ago with only 11 days on market. This AB 1482 property has a similar 1BR/2BR mix to the subject. At $217,188/unit, Gilmore represents the pricing floor, reflecting its 1-story construction and 1BA units. Adjusting modestly for the subject's superior loft and 2BA product (+3%) and liquefaction zone (-2%), the adjusted value of $215,016/unit establishes the lower bound of the range.

14121 Friar St, Van Nuys -- 7 units, built 1998, sold December 2025 for $2,050,000 ($292,857/unit, $314/SF). A recent AB 1482 sale with complete financial data (6.33% verified cap rate). Friar's all-2BR townhome product is higher-quality than the subject's 1BR-dominant mix. Adjusting for unit mix (-5%), size (-3%), and liquefaction (-2%), the implied value is $269,428/unit.

6451 Kester Ave, Van Nuys -- 14 units, built 1988, sold July 2025 for $4,680,000 ($334,286/unit, $343/SF). This premium sale at a 5.66% cap rate reflects subterranean parking and an all-2BR configuration. Adjusting for unit mix (-5%), parking quality (-5%), and liquefaction (-2%), the heavily adjusted implied value of $297,514/unit represents the ceiling reference for the subject.

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--All 1BR
213430 Victory Blvd, Van Nuys10200311,730$2,950,000$295,000$251--Deep value-add
314218 Victory Blvd, Van Nuys819887,960$3,579,000$447,375$450--Fully renovated TH - ceiling

Three active listings provide additional market context. 7437 Haskell Avenue (10 units, $289,500/unit) is an all-1BR property asking a 5.48% cap rate, indicating current seller expectations for similar-vintage product. 13430 Victory Boulevard (10 units, $295,000/unit) is a deep value-add play with rents at $1,750 versus $2,750 projected, providing insight into how the market prices significant upside. 14218 Victory Boulevard (8 units, $447,375/unit) represents the post-renovation ceiling for same-vintage townhome product - fully renovated with in-unit washer/dryer and tenant-paid utilities.

Rent Comparables
Active Rental Listings in Submarket
Rent Comps Map
#AddressTypeSFRent$/SFSource
16202 Fulton Ave #101, Van Nuys2BR/2BA1,000$2,500$2.50MLS Leased 3/22/2026
26212 Fulton Ave #201, Van Nuys2BR/2BA1,203$2,795$2.32MLS Leased 3/18/2026
36212 Fulton Ave #205, Van Nuys2BR/2BA1,105$2,745$2.48MLS Leased 1/20/2026
46041 Fulton Ave, Van Nuys1BR/1BA713$2,295$3.22Rentometer 2/17/2026
56060 Fulton Ave, Van Nuys1BR/1BA800$2,195$2.74Rentometer 4/24/2025
66060 Fulton Ave, Van Nuys2BR/1.5BA970$2,150$2.22Rentometer 12/26/2025
77453 Haskell Ave #7, Van Nuys1BR/1BA800$1,995$2.49MLS Leased 1/29/2026
85821 Sylmar Ave #2, Van Nuys2BR/2BA1,100$2,400$2.18MLS Leased 3/19/2026
Financial Analysis
Investment Underwriting

Unit Mix & Rent Roll

UnitTypeSFCurrent RentRent/SFMarket RentMarket/SF
101 - 1/1 Flat1BR/1BA650$1,800$2.77$1,950$3.00
102 - 1/1 Flat1BR/1BA650$1,923$2.96$1,950$3.00
103 - 1/1 Flat1BR/1BA650$1,900$2.92$1,950$3.00
104 - 1/1 Flat1BR/1BA650$1,740$2.68$1,950$3.00
105 - 2/2 Flat2BR/2BA904$1,700$1.88$2,500$2.77
106 - 2/2 Flat2BR/2BA904$2,400$2.65$2,500$2.77
201 - 1+L/1 Loft1+L/1BA850$1,893$2.23$2,250$2.65
202 - 1+L/1 Loft1+L/1BA850$2,012$2.37$2,250$2.65
203 - 1+L/1 Loft1+L/1BA850$2,050$2.41$2,250$2.65
204 - 1+L/1 Loft1+L/1BA850$2,190$2.58$2,250$2.65
205 - 2/2 Flat2BR/2BA904$2,430$2.69$2,500$2.77
206 - 2/2 Flat2BR/2BA904$2,309$2.55$2,500$2.77
Total12 Units9,616$24,347$2.53$26,800$2.79

Operating Statement

IncomeAnnualPer Unit$/SF% EGI
Gross Scheduled Rent$292,164$24,347$30.39 -
Less: Vacancy (3%)$(8,765)$(730)$(0.91) -
Effective Gross Income$283,399$23,617$29.48100.0%
ExpensesAnnualPer Unit$/SF% EGI
Real Estate Taxes [1]$36,855$3,071$3.8313.0%
Insurance [2]$12,014$1,001$1.254.2%
Water / Sewer [3]$6,400$533$0.672.3%
Trash$3,600$300$0.371.3%
Gas (Central Boiler) [4]$1,200$100$0.120.4%
Common Area Electric [5]$2,125$177$0.220.7%
Repairs & Maintenance [6]$12,000$1,000$1.254.2%
Contract Services$3,000$250$0.311.1%
Administrative$1,500$125$0.160.5%
Management Fee (4% GSR) [7]$11,687$974$1.224.1%
Reserves [8]$3,000$250$0.311.1%
Other/Misc$500$42$0.050.2%
Total Expenses$93,881$7,823$9.7733.1%
Net Operating Income$189,518$15,793$19.7166.9%

Notes to Operating Statement

[1] Property Taxes: Buyer Year 1 tax at list price ($3,150,000 x 1.17%). Reassesses at close per Prop 13.

[2] Insurance: (12 units x $200) + (9,614 SF x $1.00/SF) = $12,014.

[3] Water/Sewer: 16 BD x $400 = $6,400. No pool, no laundry add-ons.

[4] Gas: Owner pays hot water via central boiler only. Tenants individually metered.

[5] Electric: Tier 2 base common area $2,125. No elevator, no laundry, no pool add-ons.

[6] R&M: $1,000/unit x 12 units. No pool maintenance.

[7] Management: 4% x $292,164 GSR. Increases to $12,864 at pro forma GSR.

[8] Reserves: $250/unit x 12 units.

Summary
OPERATING DATA
Price$3,150,000
Down Payment (35%)$1,102,500
Number of Units12
Price / Unit$262,500
Price / SF$328
Gross SF9,614
Lot Size8,540 SF (0.20 ac)
Year Built1990
ReturnsCurrentPro Forma
Cap Rate6.02%6.89%
GRM10.78x9.79x
Cash-on-Cash3.83%6.31%
DSCR1.29x1.47x
FINANCING
Loan Amount$2,047,500
Loan TypeFixed
Interest Rate6.00%
Amortization30 Years
Loan Constant7.19%
LTV (LTV)65.0%
DSCR1.29x
IncomeCurrentPro Forma
GSR$292,164$321,600
Vacancy (3%)$(8,765)$(9,648)
Other Income$0$0
EGI$283,399$311,952
Cash FlowCurrentPro Forma
NOI$189,518$216,894
Debt Service$(147,310)$(147,310)
Net Cash Flow$42,209$69,584
CoC Return3.83%6.31%
Principal Reduction$25,144$25,144
Total Return6.11%8.59%
EXPENSES
Real Estate Taxes$36,855
Insurance$12,014
Water / Sewer$6,400
Trash$3,600
Gas (Central Boiler)$1,200
Common Area Electric$2,125
Repairs & Maintenance$12,000
Contract Services$3,000
Administrative$1,500
Management Fee (4% GSR)$11,687
Reserves$3,000
Other/Misc$500
Total Expenses$93,881
Suggested List Price
$3,150,000
$262,500Price / Unit
$328Price / SF
6.02%Current Cap Rate
10.78xCurrent GRM

Pricing Matrix

Purchase PriceCurrent CapPro Forma CapCash-on-Cash$/SF$/UnitPF GRM
$3,275,0005.74%6.58%3.18%$341$272,91710.18x
$3,250,0005.80%6.64%3.26%$338$270,83310.11x
$3,225,0005.85%6.70%3.35%$335$268,75010.03x
$3,200,0005.90%6.76%3.51%$333$266,6679.95x
$3,175,0005.96%6.82%3.67%$330$264,5839.87x
$3,150,0006.02%6.89%3.83%$328$262,5009.79x
$3,125,0006.07%6.95%3.99%$325$260,4179.72x
$3,100,0006.13%7.02%4.16%$322$258,3339.64x
$3,075,0006.19%7.08%4.33%$320$256,2509.56x
$3,050,0006.25%7.15%4.50%$317$254,1679.48x
$3,025,0006.31%7.22%4.68%$315$252,0839.41x
A TRADE PRICE IN THE CURRENT INVESTMENT ENVIRONMENT OF
$3,000,000 — $3,250,000

Pricing Rationale

Our suggested list price of $3,150,000 ($262,500/unit) is anchored by three Tier 1 comparable sales - 6234 Woodman Avenue, 16731 Sherman Way, and 6716 Sylmar Avenue - which, after adjustments for the subject's 1BR-heavy unit mix, liquefaction zone, and size differentials, indicate a Tier 1 weighted average of $260,760/unit. The LAAA Team's direct sale of 6716 Sylmar (12 units, non-RSO, May 2025) provides firsthand pricing intelligence on the identical product type in the immediate submarket.

Based on eight comparable sales spanning May 2024 through January 2026, with three primary comps requiring moderate adjustments primarily for unit mix composition, we have MODERATE-strong support for the $3,000,000 to $3,250,000 trade range. Three independent valuation methods confirm this positioning: the $/unit method yields $3.13M, the GRM method yields $3.14M, and the income approach at a 5.85% cap rate (tax-adjusted) produces $3.23M - a tight convergence that reinforces pricing accuracy. At the $3.15M list price, the property offers a 6.02% current cap rate and 10.78 GRM on tax-adjusted income, with 10.1% rent upside to a 6.32% pro forma cap rate.

The pricing reflects appropriate discounts for the subject's 1BR-heavy unit mix (67% of units are 1-bedroom or loft configurations versus the predominantly 2BR comp set) and liquefaction zone designation, while capturing the premium associated with non-RSO status, 100% occupancy, and a first-time market offering from a 30-year estate hold. The property is positioned to attract value-add operators, 1031 exchange buyers, and long-term hold investors seeking stable income with near-term upside.

Assumptions & Conditions: This analysis is based on information believed to be reliable but not guaranteed. Projected rents and expenses are estimates using LAAA Team broker-optimistic benchmarks and comparable market data as of March 2026. Actual results may vary. Buyers should conduct independent due diligence including verification of code enforcement cases, liquefaction zone insurance requirements, and current lease terms.
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