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 experience with RSO-governed properties and Opportunity Zone transactions is particularly relevant to this asset, where the intersection of rent control, OZ benefits, and deep loss-to-lease creates a nuanced investment story.
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 6656 Lemp Ave - a 5-unit multifamily property built in 2010 in North Hollywood's 91606 submarket, situated within a designated Opportunity Zone. The two-story, wood-frame building totals 4,575 square feet on a 6,749 square foot lot, featuring a mix of three-bedroom and four-bedroom units plus a recently completed 561 SF ADU. The property includes fire sprinklers and modern construction standards consistent with its 2010 vintage.
The property presents one of the deepest loss-to-lease profiles in the portfolio, with current rents averaging 35-44% below market on the three-bedroom and four-bedroom units. The ADU, completed in December 2024 with a Certificate of Occupancy, is already leased near market at $1,650 per month. A Section 8 tenant in Unit 2 provides a stable government-backed income floor. The Opportunity Zone designation adds a capital gains deferral incentive for qualifying buyers.
Located within the gravitational pull of the North Hollywood commercial district and half a mile from the Metro G Line at Laurel Canyon Station, the property benefits from bus rapid transit access and proximity to neighborhood retail along Victory Boulevard and Laurel Canyon Avenue. The area has seen increased multifamily investment activity as buyers seek value relative to more westerly submarkets.
North Hollywood's 91606 submarket sits at the western edge of the Valley Glen residential corridor, within reach of the North Hollywood commercial district. The neighborhood is characterized by a mix of multifamily buildings and single-family homes serving a stable renter base of Valley-based workers, healthcare employees, and entertainment industry professionals commuting to Burbank and Studio City. The median household income is $66,200 with a renter percentage of 68%.
The property benefits from proximity to the Metro G Line at Laurel Canyon Station, approximately half a mile west, providing bus rapid transit access to the broader Valley corridor and connections to the Red/Purple Line subway system. Victory Boulevard and Laurel Canyon Avenue, both within a short drive, offer grocery anchors, dining, and neighborhood retail. Seven bus lines operate within walking distance.
The North Hollywood Community Plan area has attracted increasing multifamily investment as buyers seek value relative to more westerly submarkets. The area's designation as a TOC Tier 1 location and its Opportunity Zone status have reinforced investor interest. Rental demand is supported by a steady workforce pool and limited new supply, with Van Nuys/NoHo two-bedroom rents showing 4% year-over-year growth.
| Location Details | |
|---|---|
| Walk Score | 63 - Somewhat Walkable |
| Transit Score | 52 - Good Transit |
| Bike Score | 63 - Bikeable |
| Nearest Metro | G Line Laurel Canyon Station (~0.5 mi) |
| Bus Routes | 7 lines within walking distance |
| Opportunity Zone | Yes - Qualified |
| Median HH Income | $66,200 |
| Renter Percentage | 68.18% |
| ZIP Population | 43,559 |
| Property Overview | |
|---|---|
| Address | 6656 Lemp Ave, North Hollywood, CA 91606 |
| APN | 2320024002 |
| Year Built | 2010 |
| Units | 5 (4 + ADU) |
| Building SF | 4,575 |
| Avg Unit SF | 915 |
| Stories | 2 |
| Construction | Wood Frame |
| Site & Zoning | |
|---|---|
| Lot Size (SF) | 6,749 |
| Lot Size (Acres) | 0.15 |
| Zoning | RD1.5-1 |
| TOC Tier | 1 (50% Density Bonus) |
| Opportunity Zone | Yes |
| Community Plan | North Hollywood |
| Council District | CD2 (Krekorian) |
| Building Systems & Capital Improvements | ||
|---|---|---|
| Roof | Composition | |
| Plumbing | Copper | |
| Electrical | Updated (2010) | |
| HVAC | Wall units | |
| Water Heaters | Individual | |
| Laundry | In-unit hookups | |
| ADU | 561 SF, 1BD/1BA, CofO 12/11/2024 | |
| Fire Safety | Sprinklered | |
| Regulatory & Compliance | |
|---|---|
| Rent Control | RSO (confirmed by ZIMAS) |
| Soft-Story | Not Applicable (2010) |
| Code Enforcement | None |
| Certificate of Occupancy | Yes (original + ADU 12/2024) |
| Active Permits | 1 stale demo permit (2009, administrative) |
QOZ Fund Buyers
Qualified Opportunity Zone fund investors seeking capital gains deferral and potential elimination through a 10+ year hold of this OZ-designated property
Patient Value-Add Investors
Investors comfortable with an RSO timeline who recognize the $74K annual loss-to-lease as long-term upside realizable through natural tenant turnover
1031 Exchange Buyers
Tax-deferred exchange buyers seeking a stabilized, 100% occupied asset with government-backed Section 8 income and built-in growth potential
Owner-Operators
Hands-on investors willing to manage an RSO property directly, capturing management fees and positioning for turnover events over a 5-10 year hold
6656 Lemp Ave offers the rare combination of Opportunity Zone tax benefits, deep below-market rents, a newly built ADU, and Section 8 income stability - an RSO value-add story with multiple layers of buyer appeal.
"Why is a 2010-built property subject to RSO?"
RSO status is confirmed by ZIMAS for this parcel (APN 2320024002). While unusual for post-1978 construction, ZIMAS is the authoritative source for rent control status in Los Angeles. The RSO designation may relate to the property's entitlement history. Buyers should verify with LAHD during due diligence.
"How does RSO affect the upside story?"
RSO limits annual rent increases to 3-4% for existing tenants but imposes no cap on rent resets at turnover. With current rents 35-44% below market, each turnover event captures $15K-$19K in annual income. The Section 8 tenant in Unit 2 provides stable income regardless of RSO dynamics.
"What about the property tax discrepancy?"
The seller's P&L shows $2,172 in property tax, which is clearly a partial-year figure or data error. Our underwriting uses $17,550, based on Prop 13 reassessment at the list price of $1.5M. Buyers should expect taxes to reset to approximately 1.17% of their purchase price.
"Is the ADU properly permitted?"
Yes. The ADU received a Certificate of Occupancy from LADBS on 12/11/2024. It is a 561 SF conversion from a former rec room/gym. The assessor has not yet updated the unit count from 4 to 5, but the ADU is legally permitted and occupied.
| # | Address | Units | Year | SF | Price | $/Unit | $/SF | Cap | GRM | Date | DOM |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 8425 Glenoaks Blvd, Sun Valley | 8 | 2003 | 6,508 | $1,950,000 | $243,750 | $300 | 4.98% | 12.4x | 08/2025 | 23 |
| 2 | 6234 Woodman Ave, Van Nuys | 9 | 1987 | 9,265 | $2,648,250 | $294,250 | $286 | 5.12% | 12.1x | 10/2025 | 65 |
| 3 | 14622 Gilmore St, Van Nuys | 6 | 2009 | 7,770 | $2,050,000 | $341,667 | $264 | 5.39% | 12.1x | 05/2025 | 8 |
| 4 | 11356 Erwin St, N Hollywood | 7 | 1980 | 6,461 | $2,047,000 | $292,429 | $317 | 4.77% | 13.3x | 08/2024 | 34 |
| Average | $2,173,812 | $293,024 | $292 | 5.06% | 12.5x | 32 | |||||
| Median | $2,048,500 | $293,340 | $293 | 5.05% | 12.3x | 28 | |||||
| Tier 1 Average | $243,750 | $300 | 4.98% | 12.4x |
8425 Glenoaks Blvd, Sun Valley - 8 units, 2003, mixed RSO/non-RSO, sold August 2025 at $1,950,000 ($243,750/unit) at a 4.98% verified cap rate and 12.42 GRM. As the closest RSO-comparable transaction, Glenoaks is the primary pricing anchor. After adjusting upward 5% for smaller building size, the implied value is $256K/unit. The subject at $300K/unit reflects a premium justified by the 2010 newer construction, recently completed ADU, and $74K annual loss-to-lease upside story.
6234 Woodman Ave, Van Nuys - 9 units, 1987, RSO, sold October 2025 at $2,648,250 ($294,250/unit) at a 5.12% verified cap rate. After adjusting for older vintage, the implied value is $294K/unit. This RSO-matched comp supports the subject's pricing near $300K/unit.
14622 Gilmore St, Van Nuys - 6 units, 2009, non-RSO, sold May 2025 at $2,050,000 ($341,667/unit). After applying a 12% RSO discount, the adjusted value is $301K/unit. This vintage-matched comp confirms the 2010-era value band after accounting for rent control dynamics.
| # | Address | Type | SF | Rent | $/SF | Source |
|---|---|---|---|---|---|---|
| 1 | 6129 Cahuenga Blvd | 1/1 | 650 | $1,700 | $2.62 | Comp file |
| 2 | 7718 Beck Ave | 1/1 | 640 | $1,720 | $2.69 | 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 |
| 5 | 6056 Craner Ave | 4/2 | 1,400 | $4,120 | $2.94 | Comp file |
| 6 | 7727 Lankershim Blvd | 4/2 | 1,350 | $3,900 | $2.89 | Comp file |
| Unit | Type | SF | Current Rent | Rent/SF | Market Rent | Market/SF |
|---|---|---|---|---|---|---|
| 1 | 4BD/2BA | 1,004 | $2,450 | $2.44 | $4,010 | $3.99 |
| 2 | 3BD/2BA | 1,004 | $2,440 | $2.43 | $3,748 | $3.73 |
| 3 | 3BD/2BA | 1,003 | $2,115 | $2.11 | $3,748 | $3.74 |
| 4 | 3BD/2BA | 1,003 | $2,115 | $2.11 | $3,748 | $3.74 |
| 5 (ADU) | 1BD/1BA | 561 | $1,650 | $2.94 | $1,710 | $3.05 |
| Total | 5 Units | 4,575 | $10,770 | $2.35 | $16,964 | $3.71 |
| Income | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Gross Scheduled Rent | $129,240 | $25,848 | $28.25 | - |
| Less: Vacancy (5%) | $(6,462) | $(1,292) | $(1.41) | - |
| Effective Gross Income | $122,778 | $24,556 | $26.84 | 100.0% |
| Expenses | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Real Estate Taxes [1] | $0 | $0 | $0.00 | 0.0% |
| Insurance [2] | $4,000 | $800 | $0.87 | 3.3% |
| Water / Sewer [3] | $5,600 | $1,120 | $1.22 | 4.6% |
| Trash | $1,750 | $350 | $0.38 | 1.4% |
| Gas (Master Metered) [4] | $2,550 | $510 | $0.56 | 2.1% |
| Common Area Electric | $1,275 | $255 | $0.28 | 1.0% |
| Repairs & Maintenance [5] | $5,500 | $1,100 | $1.20 | 4.5% |
| Contract Services | $1,500 | $300 | $0.33 | 1.2% |
| Admin / Legal | $1,000 | $200 | $0.22 | 0.8% |
| Management (4%) [6] | $4,911 | $982 | $1.07 | 4.0% |
| Reserves | $750 | $150 | $0.16 | 0.6% |
| Other / Misc | $250 | $50 | $0.05 | 0.2% |
| Total Expenses | $29,086 | $5,817 | $6.36 | 23.7% |
| Net Operating Income | $93,692 | $18,738 | $20.48 | 76.3% |
[1] Real Estate Taxes: Reassessed at list price x 1.17% (LA County rate). Seller P&L showed $2,172 (partial year/data error).
[2] Insurance: Broker-optimistic benchmark at $800/unit for Tier 1 (5-8 units).
[3] Water/Sewer: $400/bedroom x 14 bedrooms. Master metered, separated from bundled LADWP.
[4] Gas: 85% x $600/unit x 5 units. Master metered.
[5] R&M: $1,100/unit (2010+ bracket with $100 age adjustment). Seller $16,306 inflated by ADU conversion costs.
[6] Management: 4% of EGI. Owner-operator profile for 5-unit building.
| OPERATING DATA | |
|---|---|
| Price | $1,500,000 |
| Down Payment (46%) | $696,901 |
| Number of Units | 5 |
| Price / Unit | $300,000 |
| Price / SF | $328 |
| Gross SF | 4,575 |
| Lot Size | 6,749 SF (0.15 ac) |
| Year Built | 2010 |
| Returns | Current | Pro Forma |
|---|---|---|
| Cap Rate | 5.08% | 9.60% |
| GRM | 11.61x | 7.37x |
| Cash-on-Cash | 2.19% | 11.91% |
| DSCR | 1.25x | 2.36x |
| FINANCING | |
|---|---|
| Loan Amount | $803,099 |
| Loan Type | Fixed |
| Interest Rate | 6.50% |
| Amortization | 30 Years |
| Loan Constant | 7.58% |
| LTV (DCR) | 53.5% |
| DSCR | 1.25x |
| Income | Current | Pro Forma |
|---|---|---|
| GSR | $129,240 | $203,568 |
| Vacancy (5%) | $(6,462) | $(10,178) |
| Other Income | $0 | $0 |
| EGI | $122,778 | $193,390 |
| Cash Flow | Current | Pro Forma |
|---|---|---|
| NOI | $76,142 | $143,929 |
| Debt Service | $(60,914) | $(60,914) |
| Net Cash Flow | $15,228 | $83,015 |
| CoC Return | 2.19% | 11.91% |
| Principal Reduction | $8,976 | $8,976 |
| Total Return | 3.47% | 13.20% |
| EXPENSES | |
|---|---|
| Real Estate Taxes | $0 |
| Insurance | $4,000 |
| Water / Sewer | $5,600 |
| Trash | $1,750 |
| Gas (Master Metered) | $2,550 |
| Common Area Electric | $1,275 |
| Repairs & Maintenance | $5,500 |
| Contract Services | $1,500 |
| Admin / Legal | $1,000 |
| Management (4%) | $4,911 |
| Reserves | $750 |
| Other / Misc | $250 |
| Total Expenses | $29,086 |
| Purchase Price | Current Cap | Pro Forma Cap | Cash-on-Cash | $/SF | $/Unit | PF GRM |
|---|---|---|---|---|---|---|
| $1,625,000 | 4.60% | 8.77% | 1.78% | $355 | $325,000 | 7.98x |
| $1,600,000 | 4.69% | 8.92% | 1.85% | $350 | $320,000 | 7.86x |
| $1,575,000 | 4.78% | 9.08% | 1.93% | $344 | $315,000 | 7.74x |
| $1,550,000 | 4.87% | 9.25% | 2.01% | $339 | $310,000 | 7.61x |
| $1,525,000 | 4.97% | 9.42% | 2.09% | $333 | $305,000 | 7.49x |
| $1,500,000 | 5.08% | 9.60% | 2.19% | $328 | $300,000 | 7.37x |
| $1,475,000 | 5.18% | 9.78% | 2.29% | $322 | $295,000 | 7.25x |
| $1,450,000 | 5.29% | 9.97% | 2.39% | $317 | $290,000 | 7.12x |
| $1,425,000 | 5.40% | 10.16% | 2.51% | $311 | $285,000 | 7.00x |
| $1,400,000 | 5.52% | 10.36% | 2.65% | $306 | $280,000 | 6.88x |
| $1,375,000 | 5.64% | 10.57% | 2.79% | $301 | $275,000 | 6.75x |
Our suggested list price of $1.5M ($300K/unit) is anchored by the primary comparable - 8425 Glenoaks Blvd ($244K/unit, mixed RSO, closest rent control profile) - which, after adjustments for building size, indicates a value of $256K/unit. The subject's premium to this anchor is supported by 2010 newer construction, a recently completed ADU, and the deepest loss-to-lease in the portfolio at $74K annually.
Supporting comparables at 6234 Woodman Ave ($294K/unit, RSO-matched, October 2025) and 14622 Gilmore St ($342K/unit, non-RSO with RSO discount applied to $301K/unit) bracket the subject's pricing. The GRM of 11.60 at the list price is within the 11.30-12.42 range of accepted comps. Based on 4 comparable sales spanning August 2024 to October 2025, with 1 primary RSO comp and 2 supporting comparables, we have MODERATE confidence in this value range.