Prepared Exclusively for Berkus Trust
March 2026
The LAAA Team at Marcus & Millichap has built one of the most active multifamily brokerage practices in the San Fernando Valley. With 32 closings and $107.7M in Van Nuys transactions alone -- and 93 closings totaling over $335M across the SFV -- our team brings unmatched local market intelligence, buyer relationships, and pricing precision to every engagement.
Our direct transaction experience on streets adjacent to this portfolio provides a pricing advantage no competing broker can offer. The LAAA Team closed 6716 Sylmar Ave (12 units, $3.5M, May 2025) -- the highest-weighted comparable for this property and a non-RSO asset in the same zip code. We also closed 6228 Fulton Ave and 6551 Woodley Ave, transactions on the same streets as the other two Berkus portfolio properties. These are not research comps pulled from a database -- they are deals our team personally negotiated, marketed, and closed, giving us proprietary insight into buyer behavior and achievable pricing in this submarket.
With 456 closings and $1.45B in career volume, the LAAA Team has the infrastructure, buyer network, and execution track record to deliver an exceptional result for the Berkus Estate. We welcome the opportunity to discuss our marketing strategy and demonstrate why we are the right team to represent this portfolio.
• 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
| Date | Address | City | Units | Close Price | $/Unit | Notes |
|---|---|---|---|---|---|---|
| 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.
The LAAA Team is proud to present 13915 Sherman Way, a 15-unit townhouse-style multifamily property in Van Nuys, California. Built in 1989, the property comprises 12 two-bedroom/2.5-bath townhome units and three one-bedroom/1.5-bath flats across 16,144 square feet of improvements on a 13,998 SF lot. The two-story construction features individually metered gas and electric, a community pool, on-site laundry, and surface parking, all situated on the Sherman Way transit corridor with direct arterial access to the 405 Freeway.
The property is 100% exempt from the Los Angeles Rent Stabilization Ordinance and subject only to AB 1482 statewide rent caps, providing a new owner with meaningful operational flexibility. The townhome-style floor plans with 2.5 bathrooms represent a premium product type that consistently commands rent premiums over standard flat-style apartments. Several units remain on month-to-month leases at rents well below current market levels, with two legacy tenants paying $1,184/month against achievable rents of $2,500 to $2,650 -- creating an immediate value-add opportunity through normal turnover.
This is a first-time offering following more than 30 years of continuous ownership by the Berkus Trust, presented as an estate sale with the manager unit delivered vacant to the buyer. The property's TOC Tier 1 designation reflects its proximity to the planned East SFV Light Rail station approximately 0.3 miles south, a $3.4B transit investment expected to open in 2031. Van Nuys maintains stable renter demand with submarket vacancy below 5%, and the SFV's limited new Class B inventory ensures sustained competition for well-located, townhome-format apartments.
The subject property is situated along Sherman Way, one of the San Fernando Valley's primary east-west arterials and a designated high-frequency transit corridor. The surrounding neighborhood is a dense, working-class renter community anchored by affordable housing stock from the 1970s through 1990s. Walk Score rates the immediate area approximately 77 (Very Walkable), with commercial services, grocery, and daily necessities accessible within a half-mile. The neighborhood character is utilitarian and apartment-heavy, with pockets of single-family homes to the north and south.
Transportation access is a defining feature of this location. Metro buses 158 and 162 operate on Sherman Way, the G Line (Orange) station at Van Nuys is approximately 0.5 miles south (currently under reconstruction through 2028), and the Metrolink station is 1.8 miles away. The 405 Freeway is approximately one mile west, providing direct north-south connectivity. The planned East SFV Light Rail will add a station approximately 0.3 miles from the property by 2031, a $3.4B federally funded project that will further reinforce transit access and renter demand in this corridor.
Van Nuys maintains submarket vacancy of 4.7% (Q3 2025, Matthews), below the broader LA metro average of 5.3%. New construction activity is concentrated in Class A product -- 633 units under construction at 2.6% inventory growth -- which does not compete with the subject's Class B segment. The Sepulveda Transit Corridor (heavy rail subway approved January 2026) will connect the Valley to the Westside in approximately 20 minutes, adding a generational infrastructure investment to the area's long-term demand profile. Rent growth has been flat over the past 12 months but is expected to resume as transit investments materialize.
| Location Details | |
|---|---|
| Walk Score | ~77 (Very Walkable) |
| Transit Access | Metro buses 158/162 on Sherman Way; G Line ~0.5 mi; East SFV LRT station ~0.3 mi (2031) |
| Freeway Access | 405 Freeway ~1 mile west |
| Neighborhood | Dense renter community, working-class, apartment-heavy corridor |
| Council District | CD 6 (Van Nuys) |
| Zip Code | 91405 |
| Submarket | Van Nuys / East San Fernando Valley |
| Property Overview | |
|---|---|
| Address | 13915 Sherman Way |
| City/State/Zip | Van Nuys, CA 91405 |
| APN | 2216-005-004 |
| Units | 15 |
| Year Built | 1989 |
| Building SF | 16,144 |
| Lot SF | 13,998 |
| Lot Acres | 0.32 |
| Site & Zoning | |
|---|---|
| Zoning | R3-1 |
| General Plan | Medium Residential |
| TOC Tier | Tier 1 |
| Lot Shape | Rectangular |
| Topography | Flat |
| Parking | Surface lot |
| Building Systems & Capital Improvements | ||
|---|---|---|
| Construction | Wood frame / stucco | |
| Stories | 2 | |
| A/C | Individual wall units | |
| Pool | Yes - community pool | |
| Laundry | On-site common area | |
| Roof | Composition shingle | |
| Foundation | Concrete slab | |
| Regulatory & Compliance | |
|---|---|
| RSO Status | Exempt (built 1989, post-1978) |
| Just Cause Ordinance | Yes (LA City-wide) |
| AB 1482 (CA Tenant Protection) | Applies - annual rent cap CPI + 5%, max 10% |
| Ellis Act | Available |
| Seismic Zone | No active fault; Verdugo fault 6 km |
| Flood Zone | Zone B/X (outside primary flood area) |
Value-Add Investors
Operators seeking below-market rent rolls with turnover-driven upside. The 21.7% gap between current GSR and pro forma market rents, combined with month-to-month lease structures on legacy tenants, offers immediate income growth without capital-intensive renovations.
1031 Exchange Buyers
Tax-motivated investors seeking a replacement property with stable in-place income and long-term appreciation. The townhome-format product, non-RSO status, and Van Nuys location provide a straightforward exchange landing with minimal operational complexity.
Developer / TOC Entitlement Buyers
Investors who value the TOC Tier 1 designation and 13,998 SF R3-1 lot for future density bonus entitlement. The current cash flow covers hold costs while entitlements are pursued, offering a risk-mitigated development play.
Private Family Office / Long-Term Hold
Institutional-quality 15-unit asset with individually metered utilities, low expense ratio (28.3%), and a premium townhome product type that minimizes management intensity. Suitable as a generational hold with organic rent growth.
With 15 units of RSO-exempt townhome product, 21.7% rent upside, TOC Tier 1 designation, and an estate-sale acquisition basis, 13915 Sherman Way appeals to a broad range of multifamily investors seeking income growth, regulatory flexibility, and long-term value in one of the San Fernando Valley's most active rental markets.
"Q: The 5.23% current cap rate is tight for Van Nuys. Why should a buyer pay this?"
A: The 5.23% cap is calculated on tax-adjusted NOI after Prop 13 reassessment at the sale price. On a placeholder tax basis (current assessed value), the cap rate is higher. More importantly, the pro forma cap of 6.42% reflects achievable rents validated by MLS leased comps on Sherman Way ($2,595/mo) and nearby TH-style units ($2,695/mo). Three Tier 1 comps traded at verified caps of 5.66% (Kester), 6.34% (Sylmar), and 6.63% (Sherman Way) -- all before reassessment.
"Q: There are 4 code enforcement cases on record. What is the exposure?"
A: The 4 cases have unknown status and should be verified during due diligence. Code enforcement cases on properties of this age and type are common in LA and typically involve minor maintenance items (landscaping, exterior paint, trash enclosure). The property has been continuously occupied and maintained for 30+ years. We recommend the buyer request case status from LADBS during the inspection period.
"Q: The manager unit is delivered vacant. Does the building require an on-site manager?"
A: No. California law requires a resident manager only for buildings with 16 or more units. At 15 units, the manager position was voluntary under the prior ownership. Unit 111 will be delivered vacant, allowing the buyer to lease it at market rent ($2,500/mo scheduled) and add $30,000/year to gross income.
"Q: Sherman Way is a busy commercial corridor. Does that affect renter demand?"
A: Sherman Way is a major transit arterial with high visibility and commercial services, which many renters prefer for convenience. The townhome units face the interior courtyard with pool access, providing separation from street activity. Vacancy in Van Nuys is 4.7% (below LA metro), and the property has maintained full occupancy -- confirming that the location supports strong tenant retention.
| # | Address | Units | Year | SF | Price | $/Unit | $/SF | Cap | GRM | Date | DOM |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 6716 Sylmar Ave, Van Nuys LAAA TEAM | 12 | 1984 | 9,996 | $3,500,000 | $291,667 | $350 | 6.34% | 10.2x | 05/2025 | 26 |
| 2 | 6451 Kester Ave, Van Nuys | 14 | 1988 | 13,668 | $4,680,000 | $334,286 | $342 | 5.66% | 11.2x | 07/2025 | 138 |
| 3 | 16731 Sherman Way, Van Nuys | 13 | 1986 | 11,326 | $3,250,000 | $250,000 | $287 | 6.63% | 10.1x | 09/2025 | 26 |
| 4 | 6234 Woodman Ave, Van Nuys | 9 | 1987 | 9,265 | $2,648,250 | $294,250 | $286 | 5.12% | 11.7x | 10/2025 | 65 |
| 5 | 14121 Friar St, Van Nuys | 7 | 1998 | 6,526 | $2,050,000 | $292,857 | $314 | 6.33% | 11.1x | 12/2025 | 120 |
| 6 | 6606 Hazeltine Ave, Van Nuys | 13 | 2001 | 14,943 | $3,600,000 | $276,923 | $241 | 5.33% | 11.4x | 06/2025 | 0 |
| 7 | 6924 Vesper Ave, Van Nuys | 14 | 1991 | 13,961 | $4,100,000 | $292,857 | $294 | -- | -- | 11/2024 | 0 |
| 8 | 14239 Gilmore St, Van Nuys | 8 | 1986 | 6,224 | $1,737,500 | $217,188 | $279 | 5.30% | 11.7x | 01/2026 | 11 |
| Average | $3,195,719 | $281,254 | $299 | 5.82% | 11.1x | 48 | |||||
| Median | $3,375,000 | $292,262 | $290 | 5.66% | 11.2x | 26 | |||||
| Tier 1 Average | $291,984 | $326 | 6.21% | 10.5x |
6716 Sylmar Ave, Van Nuys (12 units, 1984, sold May 2025 at $3.5M) -- LAAA Team Sale. This is the highest-weighted comparable and an LAAA Team transaction, providing direct pricing intelligence. The property traded at $291,667/unit and a verified 6.34% cap rate (versus 6.00% stated at list). All 12 units are 2BR/2BA flats at approximately 833 SF each, compared to the subject's townhome format at 1,150 SF. Adjusting upward +3% for the subject's pool and townhome premium, this comp implies approximately $300,400/unit for the subject. Located in the same zip code (91405) less than one mile away, the Sylmar sale confirms strong buyer demand for non-RSO product in this immediate submarket.
6451 Kester Ave, Van Nuys (14 units, 1988, sold July 2025 at $4.68M) -- The closest match to the subject in size (-7%) and vintage (one year older). Kester traded at $334,286/unit and a verified 5.66% cap rate, the tightest cap in the comp set. The property features subterranean parking and all 2BR variants, reflecting a higher construction quality than the subject's surface lot. Adjusting downward -5% for the subterranean parking premium and upward +2% for the subject's pool, the net -3% adjustment implies $324,257/unit for the subject. Kester's premium pricing reflects institutional-quality construction and validates the upper end of the trade range.
16731 Sherman Way, Van Nuys (13 units, 1986, sold September 2025 at $3.25M) -- Located on the same corridor as the subject, this sale traded at $250,000/unit and a verified 6.63% cap rate, the widest cap among Tier 1 comps. The property has 13 units with a mixed bedroom configuration (1/2/3BR flats) and gated covered parking but no pool and no townhome units. Adjusting upward +3% for the subject's pool and townhome premium, this comp implies $257,500/unit. The Sherman Way corridor sale establishes the floor for subject pricing and confirms active buyer interest in this specific location.
6234 Woodman Ave, Van Nuys (9 units, 1987, sold October 2025 at $2.65M) -- A strong supporting comp with excellent vintage match (2 years) and confirmed non-RSO status. Traded at $294,250/unit and a verified 5.12% cap rate. The -40% size differential and Valley Glen location require a modest +1% net adjustment, implying $297,193/unit. Complete financial data with a 38.1% expense ratio provides reliable income metric validation.
14121 Friar St, Van Nuys (7 units, 1998, sold December 2025 at $2.05M) -- The most recent sale in the comp set (2.8 months), traded at $292,857/unit and a 6.33% verified cap rate. Notable for its 2BR TH product match (one unit is a 2BR/2.5BA townhome). The -53% size differential limits comparability, but the recency and product type alignment make it a useful supporting data point at $289,929/unit after adjustment.
6606 Hazeltine Ave, Van Nuys (13 units, 2001, sold June 2025 at $3.6M) -- Good size match (-13%) but 12 years newer with subterranean parking and a 3BR-heavy unit mix. Traded at $276,923/unit and a verified 5.33% cap rate. Multiple adjustments for vintage, parking, and unit mix produce a net -2% adjustment to $271,385/unit. The higher construction standard and newer vintage position this comp below the subject's pricing, which is consistent.
6924 Vesper Ave, Van Nuys (14 units, 1991, sold November 2024 at $4.1M) -- The best size match in the comp set (-7%) with same-vintage all-2BR/2BA product. Traded at $292,857/unit. No financial data available, limiting this comp to a $/unit reference. At 16 months old, it carries reduced recency weight but validates the $290K/unit range for Van Nuys 91405 product of this type and size.
| # | Address | Units | Year | SF | Price | $/Unit | $/SF | DOM | Notes |
|---|---|---|---|---|---|---|---|---|---|
| 1 | 7437 Haskell Ave, Van Nuys | 10 | 1987 | 8,830 | $2,895,000 | $289,500 | $328 | -- | All 1BR/1BA. Market sentiment reference. |
| 2 | 13430 Victory Blvd, Van Nuys | 10 | 2003 | 11,730 | $2,950,000 | $295,000 | $251 | -- | Heavy value-add. All 2BR/2.75BA. |
| 3 | 14218 Victory Blvd, Van Nuys | 8 | 1988 | 7,960 | $3,579,000 | $447,375 | $450 | -- | CEILING comp. Fully renovated TH. |
Three active listings provide competitive context. 7437 Haskell Ave (10 units, 1987) is listed at $289,500/unit -- a smaller, all-1BR building that represents a different buyer pool. 13430 Victory Blvd (10 units, 2003) is listed at $295,000/unit with rents deeply below market ($1,750 actual vs $2,750 projected), positioning it as a heavy value-add play. The most instructive listing is 14218 Victory Blvd (8 units, 1988) at $447,375/unit -- a fully renovated townhome property nearly identical in vintage and unit style to the subject, with tenant-paid utilities and in-unit washer/dryers. The Victory Blvd listing represents the ceiling for what the Berkus property could achieve post-renovation, while the subject at $291,667/unit offers buyers significant margin to capture that upside.
| # | Address | Type | SF | Rent | $/SF | Source |
|---|---|---|---|---|---|---|
| 1 | 14839 Sherman Way #6, Van Nuys | 2BR/2BA | 837 | $2,595 | $3.10 | MLS Leased 1/13/2026 |
| 2 | 7422 Hazeltine Ave #8, Van Nuys | TH 2BR/3BA | 1,114 | $2,695 | $2.42 | MLS Leased 10/21/2025 |
| 3 | 5821 Sylmar Ave #2, Van Nuys | 2BR/2BA | 1,100 | $2,400 | $2.18 | MLS Leased 3/19/2026 |
| 4 | 6716 Sylmar Ave #204, Van Nuys | 2BR/2BA | 833 | $2,150 | $2.58 | MLS Leased 10/15/2025 |
| 5 | 7453 Haskell Ave #7, Van Nuys | 1BR/1BA | 800 | $1,995 | $2.49 | MLS Leased 1/29/2026 |
| 6 | 15114 Sherman Way #106, Van Nuys | TH 2BR/3BA | 1,456 | $3,100 | $2.13 | MLS Leased 10/15/2025 |
| 7 | 13959 Victory Blvd #3, Van Nuys | TH 2BR/3BA | 1,184 | $3,000 | $2.53 | MLS Leased 2/5/2026 |
| 8 | 7035 Woodley Ave #105, Van Nuys | 2BR/2BA | 906 | $2,400 | $2.65 | MLS Leased 10/11/2025 |
| Unit | Type | SF | Current Rent | Rent/SF | Market Rent | Market/SF |
|---|---|---|---|---|---|---|
| 101 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $1,184 | $1.03 | $2,650 | $2.30 |
| 102 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,200 | $1.91 | $2,650 | $2.30 |
| 103 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,130 | $1.85 | $2,650 | $2.30 |
| 104 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,130 | $1.85 | $2,650 | $2.30 |
| 105 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,600 | $2.26 | $2,650 | $2.30 |
| 106 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,249 | $1.96 | $2,650 | $2.30 |
| 107 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $1,958 | $1.70 | $2,650 | $2.30 |
| 108 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,320 | $2.02 | $2,650 | $2.30 |
| 109 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,606 | $2.27 | $2,650 | $2.30 |
| 110 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,200 | $1.91 | $2,650 | $2.30 |
| 111 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $2,500 | $2.17 | $2,650 | $2.30 |
| 112 - TH 2/2.5 | 2BR/2.5BA | 1,150 | $1,958 | $1.70 | $2,650 | $2.30 |
| 113 - Flat 1/1.5 | 1BR/1.5BA | 781 | $2,000 | $2.56 | $2,050 | $2.62 |
| 114 - Flat 1/1.5 | 1BR/1.5BA | 781 | $1,950 | $2.50 | $2,050 | $2.62 |
| 115 - Flat 1/1.5 | 1BR/1.5BA | 781 | $1,184 | $1.52 | $2,050 | $2.62 |
| Total | 15 Units | 16,143 | $31,169 | $1.93 | $37,950 | $2.35 |
| Income | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Gross Scheduled Rent | $374,028 | $24,935 | $23.17 | - |
| Less: Vacancy (3%) | $(11,221) | $(748) | $(0.70) | - |
| Other Income [*] | $3,600 | $240 | $0.22 | - |
| Effective Gross Income | $366,407 | $24,427 | $22.70 | 100.0% |
| Expenses | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Real Estate Taxes [1] | $51,188 | $3,413 | $3.17 | 14.0% |
| Insurance [2] | $19,144 | $1,276 | $1.19 | 5.2% |
| Water/Sewer [3] | $13,550 | $903 | $0.84 | 3.7% |
| Trash | $4,500 | $300 | $0.28 | 1.2% |
| Gas - Central Boiler [4] | $1,500 | $100 | $0.09 | 0.4% |
| Common Area Electric [5] | $5,125 | $342 | $0.32 | 1.4% |
| Repairs & Maintenance [6] | $19,000 | $1,267 | $1.18 | 5.2% |
| Contract Services | $3,000 | $200 | $0.19 | 0.8% |
| Administrative | $1,500 | $100 | $0.09 | 0.4% |
| Management Fee (4% GSR) [7] | $14,961 | $997 | $0.93 | 4.1% |
| Reserves [8] | $3,750 | $250 | $0.23 | 1.0% |
| Other/Misc | $500 | $33 | $0.03 | 0.1% |
| Total Expenses | $137,718 | $9,181 | $8.53 | 37.6% |
| Net Operating Income | $228,689 | $15,246 | $14.17 | 62.4% |
[1] Property Taxes: Buyer Year 1 tax at list price ($4,375,000 x 1.17%). Reassesses at close per Prop 13.
[2] Insurance: (15 units x $200) + (16,144 SF x $1.00/SF) = $19,144.
[3] Water/Sewer: 27 BD x $400 + $2,000 pool + $750 laundry.
[4] Gas: Owner pays hot water via central boiler only.
[5] Electric: Base common area $2,125 + $500 laundry + $2,500 pool equipment.
[6] R&M: $1,000/unit x 15 + $4,000 pool maintenance.
[7] Management: 4% x $374,028 GSR. Increases to $18,216 at pro forma GSR.
[8] Reserves: $250/unit x 15 units.
| OPERATING DATA | |
|---|---|
| Price | $4,375,000 |
| Down Payment (45%) | $1,968,750 |
| Number of Units | 15 |
| Price / Unit | $291,667 |
| Price / SF | $271 |
| Gross SF | 16,144 |
| Lot Size | 13,998 SF (0.32 ac) |
| Year Built | 1989 |
| Returns | Current | Pro Forma |
|---|---|---|
| Cap Rate | 5.23% | 6.96% |
| GRM | 11.70x | 9.61x |
| Cash-on-Cash | 2.82% | 6.67% |
| DSCR | 1.32x | 1.76x |
| FINANCING | |
|---|---|
| Loan Amount | $2,406,250 |
| Loan Type | Fixed |
| Interest Rate | 6.00% |
| Amortization | 30 Years |
| Loan Constant | 7.19% |
| LTV (LTV) | 55.0% |
| DSCR | 1.32x |
| Income | Current | Pro Forma |
|---|---|---|
| GSR | $374,028 | $455,400 |
| Vacancy (3%) | $(11,221) | $(13,662) |
| Other Income | $3,600 | $3,600 |
| EGI | $366,407 | $445,338 |
| Cash Flow | Current | Pro Forma |
|---|---|---|
| NOI | $228,690 | $304,366 |
| Debt Service | $(173,120) | $(173,120) |
| Net Cash Flow | $55,569 | $131,245 |
| CoC Return | 2.82% | 6.67% |
| Principal Reduction | $29,549 | $29,549 |
| Total Return | 4.32% | 8.17% |
| EXPENSES | |
|---|---|
| Real Estate Taxes | $51,188 |
| Insurance | $19,144 |
| Water/Sewer | $13,550 |
| Trash | $4,500 |
| Gas - Central Boiler | $1,500 |
| Common Area Electric | $5,125 |
| Repairs & Maintenance | $19,000 |
| Contract Services | $3,000 |
| Administrative | $1,500 |
| Management Fee (4% GSR) | $14,961 |
| Reserves | $3,750 |
| Other/Misc | $500 |
| Total Expenses | $137,718 |
| Purchase Price | Current Cap | Pro Forma Cap | Cash-on-Cash | $/SF | $/Unit | PF GRM |
|---|---|---|---|---|---|---|
| $4,500,000 | 5.05% | 6.73% | 2.43% | $279 | $300,000 | 9.88x |
| $4,475,000 | 5.08% | 6.78% | 2.50% | $277 | $298,333 | 9.83x |
| $4,450,000 | 5.12% | 6.82% | 2.58% | $276 | $296,667 | 9.77x |
| $4,425,000 | 5.15% | 6.87% | 2.66% | $274 | $295,000 | 9.72x |
| $4,400,000 | 5.19% | 6.91% | 2.74% | $273 | $293,333 | 9.66x |
| $4,375,000 | 5.23% | 6.96% | 2.82% | $271 | $291,667 | 9.61x |
| $4,350,000 | 5.26% | 7.00% | 2.90% | $269 | $290,000 | 9.55x |
| $4,325,000 | 5.30% | 7.05% | 2.99% | $268 | $288,333 | 9.50x |
| $4,300,000 | 5.34% | 7.10% | 3.07% | $266 | $286,667 | 9.44x |
| $4,275,000 | 5.38% | 7.15% | 3.16% | $265 | $285,000 | 9.39x |
| $4,250,000 | 5.42% | 7.20% | 3.24% | $263 | $283,333 | 9.33x |
Our suggested list price of $4,375,000 ($291,667/unit) is anchored by three primary comparable sales -- 6716 Sylmar Ave (LAAA Team sale), 6451 Kester Ave, and 16731 Sherman Way -- which, after adjustments for size, parking type, pool, and townhome premium, indicate a Tier 1 weighted average of $293,480/unit. The subject at $291,667/unit is positioned marginally below this weighted average, reflecting appropriate market entry pricing for a first-time offering. The $/unit method, weighted at 35% of the reconciliation, produces $4.38M. Cap rate analysis at 5.75% (tax-adjusted) produces $4.03M after Prop 13 reassessment, and the GRM method at 11.0x produces $4.11M. The four-method weighted average of $4.31M supports the recommended price. The most recent transaction, 14121 Friar St (December 2025, $292,857/unit), confirms current buyer appetite at this price point. 6451 Kester Ave (July 2025, $334,286/unit) demonstrates that premium 1980s-vintage 2BR product in Van Nuys trades well above the subject's list price, even after discounting for its subterranean parking. Based on 8 comparable sales spanning May 2025 through January 2026, with 3 primary comps requiring minimal adjustments, we support a trade range of $4.2M to $4.5M ($280,000 to $300,000/unit). The 21.7% rent upside from current to pro forma GSR, non-RSO status, and townhome product type position this property to attract competitive buyer interest at or above the list price.