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 submarket since 2013, providing direct insight into the pricing dynamics, buyer pool, and regulatory landscape specific to this neighborhood. Our experience structuring RSO transactions with Opportunity Zone overlays is directly applicable to this asset, where the intersection of rent control, OZ benefits, and deep below-market rents creates a layered investment thesis.
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 6842 Morella Ave - a 6-unit multifamily property built in 2007 on a quiet residential street in North Hollywood's 91605 submarket, designated as an Opportunity Zone. The two-story, wood-frame building totals 5,671 square feet on a 7,901 square foot lot, featuring five three-bedroom units and a recently converted ADU. Fire sprinklers and modern construction standards are consistent with the 2007 vintage.
Morella presents the cleanest investment profile in the portfolio - zero code enforcement cases, all permits finaled, clean title, and no outstanding regulatory issues. The property carries the largest loss-to-lease in the portfolio at $86K annually, with three-bedroom units averaging 37-42% below market. Two Section 8 tenants provide a stable, government-backed income floor. The ADU, converted and permitted with a CofO in January 2023, is leased near market at $2,200 per month.
The Opportunity Zone designation is a significant differentiator for capital gains-motivated buyers, and the property's interior residential location on Morella Avenue provides relative tranquility compared to arterial-fronting competitors. Investor demand in North Hollywood continues to be supported by low vacancy, achievable rents, and ongoing densification pressure from LA's structural housing shortage.
North Hollywood's 91605 submarket along Morella Avenue is a quiet residential corridor in the interior of the neighborhood, characterized by a mix of small multifamily buildings and single-family homes. The area serves a stable renter base with a median household income of $65,481 and a renter percentage of 63%, reflecting the neighborhood's role as a primary workforce housing corridor in the eastern San Fernando Valley.
The property provides convenient freeway access via the 170 Freeway at Vanowen Street, connecting residents to employment centers throughout the Valley and into central Los Angeles. The Lankershim Boulevard commercial corridor, approximately one mile east, offers neighborhood retail, dining, and services. Five bus routes operate within 0.1 mile, and the Metro G Line is accessible via connecting routes.
North Hollywood has benefited from steady multifamily demand driven by its role as a workforce housing hub for Valley-based industries including healthcare, entertainment support, and logistics. The property's interior residential location provides relative tranquility compared to arterial-fronting properties, a feature valued by family renters occupying the three-bedroom units. Investor demand is supported by historically low vacancy, achievable rents, and limited new supply.
| Location Details | |
|---|---|
| Walk Score | 67 - Somewhat Walkable |
| Transit Score | ~55 (Estimated) |
| Bike Score | 69 - Bikeable |
| Bus Routes | 5 routes within 0.1 mi (165, 163, 162, 237, 152) |
| Nearest Freeway | 170 Freeway at Vanowen St |
| Opportunity Zone | Yes - Qualified |
| Median HH Income | $65,481 |
| Renter Percentage | 62.97% |
| ZIP Population | 49,868 |
| Property Overview | |
|---|---|
| Address | 6842 Morella Ave, North Hollywood, CA 91605 |
| APN | 2321019018 |
| Year Built | 2007 |
| Units | 6 (5 + ADU) |
| Building SF | 5,671 |
| Avg Unit SF | 945 |
| Stories | 2 |
| Construction | Wood Frame |
| Site & Zoning | |
|---|---|
| Lot Size (SF) | 7,901 |
| Lot Size (Acres) | 0.18 |
| Zoning | RD1.5-1 |
| TOC Tier | 2 (60% Density Bonus) |
| Opportunity Zone | Yes |
| Community Plan | North Hollywood |
| Council District | CD2 (Krekorian) |
| Building Systems & Capital Improvements | ||
|---|---|---|
| Roof | Composition | |
| Plumbing | Copper | |
| Electrical | Updated (2007) | |
| HVAC | Wall units | |
| Water Heaters | Individual | |
| Laundry | In-unit hookups | |
| ADU | 2BD/1BA, CofO 1/2023 | |
| Fire Safety | Sprinklered | |
| Regulatory & Compliance | |
|---|---|
| Rent Control | RSO (confirmed by ZIMAS, APN 2321019018) |
| Soft-Story | Not Applicable (2007) |
| Code Enforcement | ZERO - Cleanest in Portfolio |
| Certificate of Occupancy | Yes (original 8/2007 + ADU 1/2023) |
| Active Permits | 1 minor (Corrections Issued, administrative) |
QOZ Fund Buyers
The primary target - Opportunity Zone designation provides capital gains deferral and potential elimination on a 10+ year hold, with the cleanest regulatory profile in the portfolio minimizing execution risk
Patient RSO Value-Add Investors
Investors comfortable with RSO constraints who recognize the $86K annual loss-to-lease as the largest upside opportunity in the portfolio, realizable through natural tenant turnover over a 5-10 year horizon
1031 Exchange Buyers
Tax-deferred exchange buyers seeking a clean, fully stabilized asset with government-backed Section 8 income and zero regulatory red flags
Owner-Operators
Hands-on investors seeking a low-maintenance 6-unit building on a quiet residential street, with Section 8 tenants providing reliable income and minimal management friction
6842 Morella Ave is the cleanest asset in the portfolio - zero code enforcement, Opportunity Zone designation, $86K in annual upside, and two Section 8 tenants providing a government-backed income floor - ideal for QOZ fund buyers or patient value-add investors.
"RSO limits my upside - why should I pay $299K/unit?"
The Opportunity Zone designation provides a separate, tax-driven return that partially offsets the RSO constraint. A 10-year hold with capital gains elimination can add 200-400 basis points of effective annual return. Combined with the $86K loss-to-lease realized through natural turnover, the total return profile is competitive with non-RSO assets at similar pricing.
"How long until I capture the full loss-to-lease?"
Average tenant tenure in the portfolio is 5-7 years for the longest-tenured occupants. Unit 3 (Rodriguez, since 2009) and Unit 5 (Martinez, since 2007) represent the largest gaps and longest tenancies. Buyers should model a 7-10 year absorption of the full loss-to-lease under RSO constraints.
"Why is there no code enforcement or permit issues?"
This is the cleanest property in the portfolio. Zero code enforcement cases, all permits finaled, CofOs for both the original building (2007) and ADU (2023), and clean title. This clean regulatory profile reduces due diligence friction and supports faster closing timelines.
"What is the Section 8 tenant stability?"
Both Section 8 tenants have been in place for 16+ years (Unit 3 since 2009, Unit 5 since 2007). Section 8 provides guaranteed rent payment via HACLA, annual rent adjustments tied to Fair Market Rent schedules, and strong tenant retention. These are the most stable income streams in the building.
| # | Address | Units | Year | SF | Price | $/Unit | $/SF | Cap | GRM | Date | DOM |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 6234 Woodman Ave, Van Nuys | 9 | 1987 | 9,265 | $2,648,250 | $294,250 | $286 | 5.12% | 12.1x | 10/2025 | 65 |
| 2 | 8425 Glenoaks Blvd, Sun Valley | 8 | 2003 | 6,508 | $1,950,000 | $243,750 | $300 | 4.98% | 12.4x | 08/2025 | 23 |
| 3 | 5621 Klump Ave, N Hollywood | 9 | 1987 | 9,748 | $2,450,000 | $272,222 | $251 | 5.31% | 11.6x | 07/2025 | 0 |
| 4 | 14622 Gilmore St, Van Nuys | 6 | 2009 | 7,770 | $2,050,000 | $341,667 | $264 | 5.39% | 12.1x | 05/2025 | 8 |
| 5 | 11356 Erwin St, N Hollywood | 7 | 1980 | 6,461 | $2,047,000 | $292,429 | $317 | 4.77% | 13.3x | 08/2024 | 34 |
| Average | $2,229,050 | $288,864 | $284 | 5.11% | 12.3x | 26 | |||||
| Median | $2,050,000 | $292,429 | $286 | 5.12% | 12.1x | 23 | |||||
| Tier 1 Average | $269,000 | $293 | 5.05% | 12.2x |
6234 Woodman Ave, Van Nuys - 9 units, 1987, AB 1482, sold October 2025 at $2,648,250 ($294,250/unit) at a 5.12% verified cap rate and 12.08 GRM. The strongest transaction in the comp set and the most recent sale, Woodman provides the primary pricing anchor. After adjusting downward 5% for the 1987 vintage and upward 3% for the subject's smaller size, the implied value is $288K/unit. The subject at $299K/unit is closely aligned with this anchor. Morella's zero code enforcement and clean regulatory profile support pricing at or slightly above this level.
8425 Glenoaks Blvd, Sun Valley - 8 units, 2003, AB 1482, sold August 2025 at $1,950,000 ($243,750/unit) at a 4.98% verified cap rate. After adjusting upward 3% for the subject's smaller building size, the implied value is $251K/unit. This comp anchors the lower bound of the value range. The subject's RSO status is partially offset by deep below-market rents with $86K in annual loss-to-lease upside.
5621 Klump Ave, N Hollywood - 9 units, 1987, AB 1482, sold July 2025 at $2,450,000 ($272,222/unit) at a 5.31% verified cap rate. The closest unit-count match at 9 units, Klump provides a strong value reference point. After adjusting for vintage, the implied value is $253K/unit, supporting the lower end of the subject's trade range.
14622 Gilmore St, Van Nuys - 6 units, 2009, AB 1482, sold May 2025 at $2,050,000 ($341,667/unit). After adjusting downward 12% for the subject's RSO status, the implied value is $301K/unit. This vintage-matched comp provides an upper-bound reference for the subject's pricing.
| # | 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 | 3BD/2BA | 945 | $2,350 | $2.49 | $3,748 | $3.97 |
| 2 | 3BD/2BA | 945 | $2,400 | $2.54 | $3,748 | $3.97 |
| 3 | 3BD/2BA | 945 | $2,176 | $2.30 | $3,748 | $3.97 |
| 4 | 3BD/2BA | 945 | $2,400 | $2.54 | $3,748 | $3.97 |
| 5 | 3BD/2BA | 945 | $2,284 | $2.42 | $3,748 | $3.97 |
| 6 (ADU) | 2BD/1BA | 945 | $2,200 | $2.33 | $2,273 | $2.41 |
| Total | 6 Units | 5,670 | $13,810 | $2.44 | $21,013 | $3.71 |
| Income | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Gross Scheduled Rent | $165,720 | $27,620 | $29.22 | - |
| Less: Vacancy (5%) | $(8,286) | $(1,381) | $(1.46) | - |
| Effective Gross Income | $157,434 | $26,239 | $27.76 | 100.0% |
| Expenses | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Real Estate Taxes [1] | $0 | $0 | $0.00 | 0.0% |
| Insurance [2] | $4,800 | $800 | $0.85 | 3.0% |
| Water / Sewer [3] | $6,800 | $1,133 | $1.20 | 4.3% |
| Trash | $2,100 | $350 | $0.37 | 1.3% |
| Gas (Master Metered) [4] | $3,060 | $510 | $0.54 | 1.9% |
| Common Area Electric | $1,275 | $212 | $0.22 | 0.8% |
| Repairs & Maintenance [5] | $6,900 | $1,150 | $1.22 | 4.4% |
| Contract Services | $1,500 | $250 | $0.26 | 1.0% |
| Admin / Legal | $1,000 | $167 | $0.18 | 0.6% |
| Management (4%) [6] | $6,297 | $1,050 | $1.11 | 4.0% |
| Reserves | $1,200 | $200 | $0.21 | 0.8% |
| Other / Misc | $250 | $42 | $0.04 | 0.2% |
| Total Expenses | $35,182 | $5,864 | $6.20 | 22.3% |
| Net Operating Income | $122,252 | $20,375 | $21.56 | 77.7% |
[1] Real Estate Taxes: Reassessed at list price x 1.17% (LA County rate).
[2] Insurance: Broker-optimistic benchmark at $800/unit for Tier 1 (5-8 units).
[3] Water/Sewer: $400/bedroom x 17 bedrooms. Master metered, separated from bundled LADWP.
[4] Gas: 85% x $600/unit x 6 units. Master metered.
[5] R&M: $1,150/unit (2000-2009 bracket with $50 age adjustment). Seller actual $2,721 below range.
[6] Management: 4% of EGI. Owner-operator profile for 6-unit building.
| OPERATING DATA | |
|---|---|
| Price | $1,795,000 |
| Down Payment (41%) | $727,072 |
| Number of Units | 6 |
| Price / Unit | $299,167 |
| Price / SF | $317 |
| Gross SF | 5,671 |
| Lot Size | 7,901 SF (0.18 ac) |
| Year Built | 2007 |
| Returns | Current | Pro Forma |
|---|---|---|
| Cap Rate | 5.64% | 10.03% |
| GRM | 10.83x | 7.12x |
| Cash-on-Cash | 2.79% | 13.63% |
| DSCR | 1.25x | 2.22x |
| FINANCING | |
|---|---|
| Loan Amount | $1,067,928 |
| Loan Type | Fixed |
| Interest Rate | 6.50% |
| Amortization | 30 Years |
| Loan Constant | 7.58% |
| LTV (DCR) | 59.5% |
| DSCR | 1.25x |
| Income | Current | Pro Forma |
|---|---|---|
| GSR | $165,720 | $252,156 |
| Vacancy (5%) | $(8,286) | $(12,608) |
| Other Income | $0 | $0 |
| EGI | $157,434 | $239,548 |
| Cash Flow | Current | Pro Forma |
|---|---|---|
| NOI | $101,250 | $180,080 |
| Debt Service | $(81,000) | $(81,000) |
| Net Cash Flow | $20,250 | $99,079 |
| CoC Return | 2.79% | 13.63% |
| Principal Reduction | $11,937 | $11,937 |
| Total Return | 4.43% | 15.27% |
| EXPENSES | |
|---|---|
| Real Estate Taxes | $0 |
| Insurance | $4,800 |
| Water / Sewer | $6,800 |
| Trash | $2,100 |
| Gas (Master Metered) | $3,060 |
| Common Area Electric | $1,275 |
| Repairs & Maintenance | $6,900 |
| Contract Services | $1,500 |
| Admin / Legal | $1,000 |
| Management (4%) | $6,297 |
| Reserves | $1,200 |
| Other / Misc | $250 |
| Total Expenses | $35,182 |
| Purchase Price | Current Cap | Pro Forma Cap | Cash-on-Cash | $/SF | $/Unit | PF GRM |
|---|---|---|---|---|---|---|
| $2,045,000 | 4.81% | 8.66% | 1.95% | $361 | $340,833 | 8.11x |
| $1,995,000 | 4.96% | 8.91% | 2.08% | $352 | $332,500 | 7.91x |
| $1,945,000 | 5.12% | 9.17% | 2.22% | $343 | $324,167 | 7.71x |
| $1,895,000 | 5.28% | 9.44% | 2.38% | $334 | $315,833 | 7.52x |
| $1,845,000 | 5.46% | 9.73% | 2.57% | $325 | $307,500 | 7.32x |
| $1,795,000 | 5.64% | 10.03% | 2.79% | $317 | $299,167 | 7.12x |
| $1,745,000 | 5.84% | 10.35% | 3.04% | $308 | $290,833 | 6.92x |
| $1,695,000 | 6.04% | 10.69% | 3.33% | $299 | $282,500 | 6.72x |
| $1,645,000 | 6.26% | 11.05% | 3.80% | $290 | $274,167 | 6.52x |
| $1,595,000 | 6.49% | 11.44% | 4.47% | $281 | $265,833 | 6.33x |
| $1,545,000 | 6.74% | 11.84% | 5.18% | $272 | $257,500 | 6.13x |
Our suggested list price of $1.795M ($299K/unit) is anchored by two primary comparables — 6234 Woodman Ave ($294K/unit, strongest transaction, most recent sale) and 8425 Glenoaks Blvd ($244K/unit, 2003 vintage) — which, after adjustments for vintage and size, indicate a Tier 1 weighted average of $270K/unit. The subject at $299K/unit reflects an 11% premium to this anchor, justified by the cleanest regulatory profile in the portfolio (zero code enforcement, all permits finaled) and the largest loss-to-lease at $86K annually.
The most recent transaction, 6234 Woodman Ave (October 2025, $294K/unit at a 5.12% cap), provides the freshest indicator of multifamily pricing in the submarket. No true RSO-matched comps exist in the current market — the comp pool consists of AB 1482 properties, with RSO adjustments applied to non-RSO comps where appropriate. Based on 5 comparable sales spanning August 2024 to October 2025, we have HIGH confidence in this value range. The trade range of $1.65M–$1.85M ($275K–$308K/unit) is the tightest in the portfolio, reflecting strong comp support and excellent alignment with Morgan's independent pricing model at $1.75M.