LAAA Team  |  Marcus & Millichap

Range of Value — Cap Rate Sensitivity

Prepared for Christine Luu  |  4307 Whitsett Ave, Studio City, CA 91604

16 Units  |  Built 1985  |  Not RSO  |  100% Occupied  |  EGI: $542,802  |  GSR: $552,780
±$500,000 range in $100,000 steps  |  Property tax and insurance scale with price at each level
Sale Price Price / Unit Price / SF GRM Cap Rate
$6,200,000$387,500$370.8111.22×5.67%
$6,300,000$393,750$376.7911.40×5.55%
$6,400,000$400,000$382.7811.58×5.44%
$6,500,000$406,250$388.7611.76×5.34%
$6,600,000$412,500$394.7411.94×5.23%
$6,700,000$418,750$400.7212.12×5.13%
$6,800,000$425,000$406.7012.30×5.03%
$6,900,000$431,250$412.6812.48×4.94%
$7,000,000$437,500$418.6612.66×4.85%
$7,100,000$443,750$424.6412.84×4.76%
$7,200,000$450,000$430.6213.03×4.67%
At $6,700,000, the property trades at a 5.13% cap on buyer-underwritten expenses — consistent with recent Studio City non-RSO transactions. At $418,750/unit, the subject carries a modest premium to the most comparable recent sale (Valleyheart Dr, $413,889/unit, Oct 2024), supported by its non-RSO status and 100% occupancy.
GRM = Price ÷ GSR ($552,780). Cap Rate = NOI ÷ Price. NOI = EGI ($542,802) minus property tax (Price × 1.25%) minus insurance (Price × 0.237%) minus fixed OpEx ($99,312). $/SF based on 16,720 SF. PPU based on 16 units.
Morgan Wetmore  |  Associate Investments  |  (818) 212-2724  |  Morgan.Wetmore@marcusmillichap.com  |  CA 02209935
Glen Scher  |  Senior Managing Director  |  (818) 212-2808  |  Glen.Scher@marcusmillichap.com  |  CA 01962976
Filip Niculete  |  Senior Managing Director  |  (818) 212-2748  |  Filip.Niculete@marcusmillichap.com  |  CA 01905352