Prepared Exclusively for Wyman Dunford
March 2026
The LAAA Team - Glen Scher, Filip Niculete, and Morgan Wetmore - brings over a decade of focused expertise in Los Angeles multifamily investment sales. With more than 500 transactions and $1.6 billion in closed sales volume, the team has established itself as one of the leading apartment brokerage teams in the San Fernando Valley and greater Los Angeles market.
The LAAA Team has been active in the North Hollywood and Van Nuys submarkets since 2013, providing direct insight into the pricing dynamics, buyer pool, and regulatory landscape that define these neighborhoods. Our deep familiarity with the SFV multifamily market - from RSO-governed assets to newer-construction value-add opportunities - translates directly into accurate pricing and efficient execution for our clients.
Our commitment extends beyond the transaction. We guide our clients through every phase - from market positioning and pricing strategy through buyer qualification, due diligence, and closing execution - delivering results that reflect the full market potential of each asset.
• 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
• 500+ Transactions - Over $1.6 billion in career sales volume
• 34-Day Median DOM - Properties sell faster than market average
The LAAA Team is proud to present 12040 Dehougne St - a 5-unit multifamily property built in 2005 in North Hollywood's 91605 submarket. The two-story, wood-frame building totals 5,343 square feet on an 8,098 square foot lot, featuring a mix of two-bedroom and three-bedroom units with central air conditioning, fire sprinklers, and a concrete block perimeter wall. The 2005 construction provides modern building systems including copper plumbing and updated electrical.
The property offers a compelling value-add profile driven by deep loss-to-lease on the two three-bedroom units, where long-term tenants (10+ years) pay $2,400 per month against a market rent of $3,748 - a 36% discount. The building is 100% occupied with a stable tenant base, and its non-RSO status allows full market resets upon turnover without rent control limitations. The property also supports ADU potential under current California law, with capacity for one ADU and one JADU.
Situated in an established multifamily corridor with direct access to the 170 Freeway and proximity to the NoHo Red Line station, the property benefits from consistent rental demand driven by employment centers at Universal Studios, NBC/Universal, and the Lankershim commercial corridor. The submarket's supply-constrained infill character and relative affordability continue to attract both renters and investors seeking strong rent-to-price ratios.
North Hollywood's 91605 submarket is an established multifamily corridor in the eastern San Fernando Valley, characterized by a stable mix of newer-vintage apartment buildings and single-family residences. The neighborhood serves a working-class and blue-collar renter base with a median household income of $65,481 and a renter percentage of 63%, producing consistently low vacancy rates driven by the area's relative affordability within the Los Angeles basin.
The property benefits from strong transit connectivity, with the 170 Freeway approximately half a mile to the west and the NoHo Metro Red/Purple Line station approximately one mile to the southeast. Six bus routes operate within half a mile, including Lines 230, 165, and 237. Major employment centers are accessible within a short commute, including Universal Studios, the NBC/Universal campus, and the commercial corridors along Lankershim and Victory Boulevards.
North Hollywood has seen sustained multifamily investment activity as buyers seek value relative to more westerly submarkets like Studio City and Sherman Oaks. The submarket's supply-constrained character - limited new construction sites and restrictive zoning - has supported steady rent growth, with Van Nuys/NoHo two-bedroom median rents tracking at $2,495 with 4% year-over-year growth per Zumper's March 2026 data. The area's designation as a TOC Tier 2 location reflects its transit-rich environment.
| Location Details | |
|---|---|
| Walk Score | 82 - Very Walkable |
| Transit Score | 49 - Some Transit |
| Bike Score | 72 - Very Bikeable |
| Nearest Metro | NoHo Red/Purple Line Station (~1 mi SE) |
| Nearest Freeway | 170 Freeway (~0.5 mi) |
| Bus Routes | 6 lines within 0.5 mi (230, 165, 237, 162, 224, 152) |
| Median HH Income | $65,481 |
| Renter Percentage | 62.97% |
| ZIP Population | 49,868 |
| Property Overview | |
|---|---|
| Address | 12040 Dehougne St, North Hollywood, CA 91605 |
| APN | 2321-025-001 |
| Year Built | 2005 |
| Units | 5 |
| Building SF | 5,343 |
| Avg Unit SF | 1,069 |
| Stories | 2 |
| Construction | Type V-N, Wood Frame |
| Site & Zoning | |
|---|---|
| Lot Size (SF) | 8,098 |
| Lot Size (Acres) | 0.19 |
| Zoning | RD1.5-1 |
| TOC Tier | 2 (60% Density Bonus) |
| Community Plan | North Hollywood |
| Council District | CD2 (Krekorian) |
| Parking | Surface/Covered |
| Building Systems & Capital Improvements | ||
|---|---|---|
| Roof | Composition shingle | |
| Plumbing | Copper | |
| Electrical | Updated (2005) | |
| HVAC | Central A/C | |
| Water Heaters | Individual | |
| Laundry | In-unit hookups | |
| Windows | Dual-pane | |
| Fire Safety | Sprinklered | |
| Regulatory & Compliance | |
|---|---|
| Rent Control | Not RSO (AB 1482 Governed) |
| Soft-Story | Not Applicable (2005) |
| Code Enforcement | 1 stale case (2003, Under Investigation) |
| Certificate of Occupancy | NOT ON FILE - buyer DD item |
| Active Permits | None |
Value-Add Investors
Investors targeting near-term rent upside through tenant turnover on the two deeply below-market 3BR units, with non-RSO flexibility enabling immediate market resets
1031 Exchange Buyers
Tax-deferred exchange buyers seeking a stabilized, 100% occupied asset with built-in upside and modern 2005 construction requiring minimal capital investment
Small Portfolio Builders
Investors building a North Hollywood multifamily portfolio, adding a non-RSO asset to complement RSO-governed holdings in the same submarket
Owner-Operators
Hands-on investors comfortable managing a 5-unit building directly, capturing the 4% management fee as additional return
12040 Dehougne St offers a rare combination of non-RSO flexibility, deep loss-to-lease upside, and modern 2005 construction in a supply-constrained North Hollywood submarket - positioned for both immediate cash flow and near-term rent growth on turnover.
"Why is there no Certificate of Occupancy on file?"
The building was constructed in 2005 with all permits finaled on 8/31/2005. The absence of a CofO in LADBS records appears to be an administrative gap rather than a compliance issue. Buyers should budget for a formal clearance letter or retroactive CofO during due diligence, typically $5K-$15K.
"What explains the high utility expenses?"
The $10,000 normalized water/sewer/trash figure reflects bundled LADWP billing for a 5-unit building in Los Angeles. All units are individually metered for electric; gas and water are master metered. The normalized figure is defensible based on comparable buildings in the submarket.
"Is AB 1482 a concern for rent growth?"
AB 1482 caps annual increases at CPI + 5% (max 10%) for existing tenants, but imposes no limit on rent resets at turnover. Given the 36% loss-to-lease on the 3BR units, the primary upside comes from turnover events, which are uncapped under AB 1482.
"What is the ADU potential?"
Current RD1.5-1 zoning and California state law permit one ADU and one JADU, potentially increasing the unit count from 5 to 7. TOC Tier 2 designation provides additional density bonus options for qualifying projects.
| # | Address | Units | Year | SF | Price | $/Unit | $/SF | Cap | GRM | Date | DOM |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 14622 Gilmore St, Van Nuys | 6 | 2009 | 7,770 | $2,050,000 | $341,667 | $264 | 5.39% | 12.1x | 05/2025 | 8 |
| 2 | 11218 Oxnard St, N Hollywood | 6 | 1985 | 4,152 | $2,000,000 | $333,333 | $482 | 5.80% | 11.7x | 09/2025 | 58 |
| 3 | 14243 Victory Blvd, Van Nuys | 5 | 2022 | 5,888 | $2,665,000 | $533,000 | $453 | 5.16% | 13.8x | 10/2024 | 17 |
| 4 | 14121 Friar St, Van Nuys | 7 | 1998 | 6,526 | $2,050,000 | $292,857 | $314 | 6.33% | 11.3x | 12/2025 | 120 |
| 5 | 8425 Glenoaks Blvd, Sun Valley | 8 | 2003 | 6,508 | $1,950,000 | $243,750 | $300 | 4.98% | 12.4x | 08/2025 | 23 |
| Average | $2,143,000 | $348,921 | $363 | 5.53% | 12.3x | 45 | |||||
| Median | $2,050,000 | $333,333 | $314 | 5.39% | 12.1x | 23 | |||||
| Tier 1 Average | $337,500 | $373 | 5.59% | 11.9x |
14622 Gilmore St, Van Nuys - 6 units, 2009, sold May 2025 at $2,050,000 ($341,667/unit) at a 5.39% verified cap rate and 12.10 GRM. The closest vintage match to the subject's 2005 construction, Gilmore is the primary pricing anchor. Adjusting upward 2% for the subject's smaller unit count (5 vs 6 units), the implied value is $349K/unit. The subject at $280K/unit reflects a 20% discount to this anchor, accounting for the elevated utility expense profile and missing Certificate of Occupancy.
11218 Oxnard St, North Hollywood - 6 units, 1985 (remodeled), sold September 2025 at $2,000,000 ($333,333/unit) at a 5.80% verified cap rate and 11.73 GRM. Located less than one mile from the subject, Oxnard provides the strongest location proxy in the comp set. Adjusting downward 5% for the 1985 vintage and upward 2% for size, the implied value is $323K/unit. The subject's 2005 construction and modern building systems support pricing above this older-vintage benchmark.
14243 Victory Blvd, Van Nuys - 5 units, 2022 new construction, sold October 2024 at $2,665,000 ($533,000/unit). After a 13% downward adjustment for the 2022 new-construction premium, the implied value is $464K/unit. This comp sets an upper bound but requires significant vintage adjustment.
14121 Friar St, Van Nuys - 7 units, 1998, sold December 2025 at $2,050,000 ($292,857/unit) at a 6.33% verified cap rate after 120 days on market. Friar reflects motivated-seller pricing with concessions. Adjusted to $287K/unit, it establishes a conservative value floor.
8425 Glenoaks Blvd, Sun Valley - 8 units, 2003, mixed RSO, sold August 2025 at $1,950,000 ($243,750/unit). After a 15% upward adjustment for RSO-to-non-RSO conversion and size differential, the implied value is $280K/unit - closely aligned with the subject's list price.
| # | Address | Type | SF | Rent | $/SF | Source |
|---|---|---|---|---|---|---|
| 1 | 6819 Laurel Canyon Blvd | 2/2 | 950 | $2,295 | $2.42 | Comp file |
| 2 | 11817 Victory Blvd | 2/2 | 900 | $2,250 | $2.50 | Comp file |
| 3 | 6830 Morella Ave | 3/2 | 1,100 | $3,495 | $3.18 | Comp file |
| 4 | 7639 Radford Ave | 3/2 | 1,150 | $4,000 | $3.48 | Comp file |
| Unit | Type | SF | Current Rent | Rent/SF | Market Rent | Market/SF |
|---|---|---|---|---|---|---|
| 1 | 2BD/2BA | 1,069 | $2,050 | $1.92 | $2,273 | $2.13 |
| 2 | 2BD/1BA | 1,069 | $1,950 | $1.82 | $2,100 | $1.96 |
| 3 | 2BD/2BA | 1,069 | $2,050 | $1.92 | $2,273 | $2.13 |
| 4 | 3BD/2BA | 1,069 | $2,400 | $2.25 | $3,748 | $3.51 |
| 5 | 3BD/2BA | 1,069 | $2,400 | $2.25 | $3,748 | $3.51 |
| Total | 5 Units | 5,345 | $10,850 | $2.03 | $14,142 | $2.65 |
| Income | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Gross Scheduled Rent | $130,200 | $26,040 | $24.37 | - |
| Less: Vacancy (5%) | $(6,510) | $(1,302) | $(1.22) | - |
| Effective Gross Income | $123,690 | $24,738 | $23.15 | 100.0% |
| Expenses | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Real Estate Taxes [1] | $0 | $0 | $0.00 | 0.0% |
| Insurance [2] | $4,000 | $800 | $0.75 | 3.2% |
| Water / Sewer [3] | $4,800 | $960 | $0.90 | 3.9% |
| Trash | $1,750 | $350 | $0.33 | 1.4% |
| Gas (Master Metered) [4] | $2,550 | $510 | $0.48 | 2.1% |
| Common Area Electric | $1,275 | $255 | $0.24 | 1.0% |
| Repairs & Maintenance [5] | $5,750 | $1,150 | $1.08 | 4.6% |
| Contract Services | $1,500 | $300 | $0.28 | 1.2% |
| Admin / Legal | $1,000 | $200 | $0.19 | 0.8% |
| Management (4%) [6] | $4,948 | $990 | $0.93 | 4.0% |
| Reserves | $1,000 | $200 | $0.19 | 0.8% |
| Other / Misc | $250 | $50 | $0.05 | 0.2% |
| Total Expenses | $28,823 | $5,765 | $5.39 | 23.3% |
| Net Operating Income | $94,867 | $18,973 | $17.76 | 76.7% |
[1] Real Estate Taxes: Reassessed at list price × 1.17% (LA County rate).
[2] Insurance: Broker-optimistic benchmark at $800/unit for Tier 1 (5-8 units).
[3] Water/Sewer: $400/bedroom × 12 bedrooms. Master metered, separated from bundled LADWP.
[4] Gas: 85% × $600/unit × 5 units. Master metered.
[5] R&M: $1,150/unit (2000-2009 bracket with $50 age adjustment).
[6] Management: 4% of EGI. Owner-operator profile for 5-unit building.
| OPERATING DATA | |
|---|---|
| Price | $1,400,000 |
| Down Payment (41%) | $572,167 |
| Number of Units | 5 |
| Price / Unit | $280,000 |
| Price / SF | $262 |
| Gross SF | 5,343 |
| Lot Size | 8,098 SF (0.19 ac) |
| Year Built | 2005 |
| Returns | Current | Pro Forma |
|---|---|---|
| Cap Rate | 5.61% | 8.18% |
| GRM | 10.75x | 8.25x |
| Cash-on-Cash | 2.74% | 9.04% |
| DSCR | 1.25x | 1.82x |
| FINANCING | |
|---|---|
| Loan Amount | $827,833 |
| Loan Type | Fixed |
| Interest Rate | 6.50% |
| Amortization | 30 Years |
| Loan Constant | 7.58% |
| LTV (DCR) | 59.1% |
| DSCR | 1.25x |
| Income | Current | Pro Forma |
|---|---|---|
| GSR | $130,200 | $169,704 |
| Vacancy (5%) | $(6,510) | $(8,485) |
| Other Income | $0 | $0 |
| EGI | $123,690 | $161,219 |
| Cash Flow | Current | Pro Forma |
|---|---|---|
| NOI | $78,487 | $114,515 |
| Debt Service | $(62,790) | $(62,790) |
| Net Cash Flow | $15,697 | $51,725 |
| CoC Return | 2.74% | 9.04% |
| Principal Reduction | $9,253 | $9,253 |
| Total Return | 4.36% | 10.66% |
| EXPENSES | |
|---|---|
| Real Estate Taxes | $0 |
| Insurance | $4,000 |
| Water / Sewer | $4,800 |
| Trash | $1,750 |
| Gas (Master Metered) | $2,550 |
| Common Area Electric | $1,275 |
| Repairs & Maintenance | $5,750 |
| Contract Services | $1,500 |
| Admin / Legal | $1,000 |
| Management (4%) | $4,948 |
| Reserves | $1,000 |
| Other / Misc | $250 |
| Total Expenses | $28,823 |
| Purchase Price | Current Cap | Pro Forma Cap | Cash-on-Cash | $/SF | $/Unit | PF GRM |
|---|---|---|---|---|---|---|
| $1,525,000 | 5.05% | 7.41% | 2.16% | $285 | $305,000 | 8.99x |
| $1,500,000 | 5.15% | 7.56% | 2.26% | $281 | $300,000 | 8.84x |
| $1,475,000 | 5.26% | 7.70% | 2.36% | $276 | $295,000 | 8.69x |
| $1,450,000 | 5.37% | 7.86% | 2.48% | $271 | $290,000 | 8.54x |
| $1,425,000 | 5.49% | 8.02% | 2.61% | $267 | $285,000 | 8.40x |
| $1,400,000 | 5.61% | 8.18% | 2.74% | $262 | $280,000 | 8.25x |
| $1,375,000 | 5.73% | 8.35% | 2.90% | $257 | $275,000 | 8.10x |
| $1,350,000 | 5.86% | 8.53% | 3.06% | $253 | $270,000 | 7.96x |
| $1,325,000 | 5.99% | 8.71% | 3.25% | $248 | $265,000 | 7.81x |
| $1,300,000 | 6.13% | 8.90% | 3.46% | $243 | $260,000 | 7.66x |
| $1,275,000 | 6.27% | 9.10% | 3.83% | $239 | $255,000 | 7.51x |
Our suggested list price of $1.4M ($280K/unit) is anchored by two primary comparables - 14622 Gilmore St ($342K/unit, 2009 vintage, closest age match) and 11218 Oxnard St ($333K/unit, closest location match) - which, after adjustments for vintage, size, and location, indicate a Tier 1 weighted average of $336K/unit. The subject at $280K/unit reflects a 17% discount to this anchor, driven by the elevated LADWP utility profile and the missing Certificate of Occupancy, both of which create buyer friction that is appropriately reflected in pricing.
The most recent transaction, 14121 Friar St (December 2025, $293K/unit at a 6.33% cap), provides the freshest indicator of current market conditions. Based on 5 comparable sales spanning October 2024 to December 2025, with 2 primary comps requiring minimal adjustment, we have MODERATE confidence in this value range. The trade range of $1.3M-$1.5M ($260K-$300K/unit) reflects the range of plausible outcomes depending on buyer tolerance for the CofO and utility issues.