5 Units | Studio City
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The successful sale of 12021 Hoffman St in Studio City, CA.
How We Priced the Property
Whenever a client asks us to price a smaller rent-controlled apartment building in Los Angeles, we always consider the redevelopment potential of the lot in addition to the value of the existing units. What sets us apart from the competition is our ability to accurately analyze rent-controlled properties as redevelopment opportunities. With extensive experience in land sales—
In most cases, the challenges of redeveloping a rent-controlled property mean it’s more valuable to apartment investors. However, we believed this Hoffman lot had unique potential, particularly for a developer open to building a large ED 1 project with 100% affordable units.
Looking solely at the existing 5-unit building, we would have priced 12021 Hoffman with a 4.75%–5.00% CAP rate, reflecting the current market for rent-controlled apartments in Studio City. This CAP range would have put the value between $1,350,000 and $1,400,000— or about 10% below the price we ultimately achieved for our clients.
The successful sale of 12021 Hoffman St in Studio City, CA.
How We Priced the Property
Whenever a client asks us to price a smaller rent-controlled apartment building in Los Angeles, we always consider the redevelopment potential of the lot in addition to the value of the existing units. What sets us apart from the competition is our ability to accurately analyze rent-controlled properties as redevelopment opportunities. With extensive experience in land sales—
In most cases, the challenges of redeveloping a rent-controlled property mean it’s more valuable to apartment investors. However, we believed this Hoffman lot had unique potential, particularly for a developer open to building a large ED 1 project with 100% affordable units.
