Broker Opinion of Value - 1114 S Sherbourne Dr

Team Track Record

LA Apartment Advisors at Marcus & Millichap

LAAA Team of Marcus & MillichapExpertise, Execution, Excellence.

460+Closed Transactions

$1.47B+Total Sales Volume

4,200+Units Sold

#1Most Active · LA County

"We Didn't Invent Great Service, We Just Work Relentlessly to Provide It."

Since 2011, the LAAA Team has closed 460+ multifamily transactions totaling $1.47B+ in volume across Los Angeles, Ventura, and Santa Barbara counties, with deep, continuous transaction experience in the Westside-adjacent rental corridors of Beverlywood, Pico-Robertson, Mid-City, and Beverly Grove that surround 1114 S Sherbourne Dr.

Our practice is built on disciplined underwriting, the deepest comparable-sales dataset in the submarket, and a marketing engine that reaches every active multifamily buyer in Los Angeles. For this offering, the LAAA Team is joined by Vangelis Korasidis of Coldwell Banker Global Luxury — a top-1% international agent based in Beverly Hills — combining institutional multifamily execution with a global luxury buyer network.

For 1114 S Sherbourne Dr, that means an evidence-based opinion of value anchored in current in-place income, a clear rent-controlled mark-to-market story, and recent Westside small-apartment sales — presented with the same rigor we would bring to defending the price against a buyer's due-diligence challenge.

Your Listing Team

#1 Most Active Multifamily Sales Team in LA County

CoStar • 2019, 2020, 2021 • #4 in California

Filip Niculete

Senior Managing Director Investments · Marcus & Millichap

Co-founder of the LAAA Team and one of Southern California's top multifamily brokers. Since 2011, Filip has built a reputation for execution, integrity, and relentless work ethic, helping lead the team to $1.47B+ in closed transactions while consistently leading the market in active inventory across the Westside and San Fernando Valley.

Glen Scher

Senior Managing Director Investments · Marcus & Millichap

Co-founder of the LAAA Team and one of the most active multifamily brokers in Los Angeles, with 450+ transactions and $1.4B+ in closed sales. A Los Angeles market specialist since 2014 with deep experience pricing and trading rent-controlled small-apartment product across the county's core rental submarkets.

Co-Listing Agent · Coldwell Banker Global Luxury

Vangelis Korasidis

Global Luxury Estates Director

Beverly Hills–based Global Luxury Estates Director with Coldwell Banker Global Luxury and a member of the International Society of Excellence. A Top 1% Agent Internationally, Top 100 Agent in California, and Top 10 Agent in North America in Rental Income, Vangelis brings an international luxury and investor buyer network to the offering, complementing the LAAA Team's multifamily depth. Office 310-247-1500 · Cell 310-405-9500 · Greek@ColdwellBanker.com · DRE 01222626 · VangelisKorasidis.com

Aida Memary Scher

Associate Director

Luka Leader

Associate Investments

Morgan Wetmore

Associate Investments

Logan Ward

Associate Investments

Alexandro Tapia

Associate Investments

Blake Lewitt

Associate Investments

Mike Palade

Agent Assistant

Tony H. Dang

Business Operations Manager

Key Achievements

• Chairman's Club - Marcus & Millichap's top-tier annual honor
• National Achievement Award - multiple years, both partners
• #1 Most Active Multifamily Team in LA County - CoStar 2019-2021
• Sales Recognition Award - every year since 2016
• 40+ transactions per year - one of SoCal's most active groups

As Featured InBISNOWYAHOO FINANCECONNECT CRESFVBJTHE PINNACLE LIST

Our Marketing Approach & Reach

Every Active LA Multifamily Buyer, Plus a Global Luxury Network

23,795+Email Subscribers

26.1%Avg Open Rate

7 DaysTo Full Market Reach

2 FirmsM&M + Coldwell Banker

"We are proactive marketers, not reactive. Your property goes in front of every active buyer in the market - by email, by phone, and on every platform investors use to find deals - now amplified by Coldwell Banker's global luxury network."

Direct & Database

23,795-subscriber Mailchimp list (26.1% avg open)
APTO / Salesforce investor database
Direct outreach to qualified 1031 and active Westside multifamily buyers

Listing Platforms

TheMLS - full LA County agent reach
LoopNet, Crexi, CoStar - the institutional and 1031 trifecta
Zillow, Redfin, Brevitas, DuxRE & ApartmentBuildings.com
www.laaa.com dedicated listing page

Global Luxury Network

Coldwell Banker Global Luxury international referral network
Beverly Hills–based high-net-worth and 1031 investor relationships
Cross-firm buyer coverage from two established Westside offices

Positioning

Just Listed email blast at launch
Inclusion in the next All-Inventory send
Quarterly 1031 Exchange Opportunities newsletter

Advertised OnTHEMLSLOOPNETCREXICOSTARZILLOWREDFINBREVITASDUXREAPARTMENTBUILDINGS.COMWWW.LAAA.COM

Investment Overview

Beverlywood / Pico-Robertson - 1114 S Sherbourne Dr

7Units

6,278Building SF

1955Year Built

$188,796Current GSR

1114 S Sherbourne Dr is a 7-unit walk-up apartment building in a prime Westside-adjacent rental corridor, positioned just south of Olympic Boulevard between Robertson and La Cienega in the Beverlywood / Pico-Robertson pocket of Los Angeles (90035). The unit mix is a favorable blend of four one-bedroom and three two-bedroom homes over gated carport parking.

The property has been meaningfully de-risked by recent ownership: four of the seven unit interiors have been renovated, the building received fresh exterior paint in 2024, and a new roof was installed in 2024 — materially reducing near-term capital exposure for a buyer. Four of the seven units have turned to market rents since January 2026, proving out achievable rent levels.

The core of the opportunity is a durable, in-place rent-controlled (LARSO) income stream of $188,796 today, with a clear mark-to-market path: two long-tenured units remain roughly $1,000–$1,350/month below market, and full stabilization lifts gross scheduled rent to approximately $237,600 — a ~26% embedded upside that carries the going-in cap from the high-4% range toward the high-6% range.

Investment Highlights

Recent capital already spent - new roof (2024), fresh exterior paint (2024), and 4 of 7 interiors renovated
Proven mark-to-market - 4 units turned to market since Jan 2026; two below-market units drive ~$49K/yr of embedded rent upside
Prime Westside-adjacent location - minutes to Beverly Hills, Century City, Culver City & Cedars-Sinai employment
Favorable unit mix - 4x 1BR + 3x 2BR, spacious layouts, gated carport parking
Durable RSO income - stabilized, low-vacancy asset in a supply-constrained rental pocket

Location Overview

Beverlywood / Pico-Robertson - 90035

1114 S Sherbourne Dr sits in one of central Los Angeles's most established and supply-constrained rental corridors — the Beverlywood / Pico-Robertson pocket just south of Olympic Boulevard, between Robertson and La Cienega. The area blends single-family character with pockets of well-tenanted small apartment product and draws consistent renter demand from its unmatched access to Westside employment.

Residents are within minutes of the job and lifestyle hubs of Beverly Hills, Century City, Culver City, and West Hollywood, and a short drive to Cedars-Sinai Medical Center. The Pico, Olympic, and Robertson corridors provide dense neighborhood retail, cafes, grocery, and houses of worship, while quick connections to the 10 Freeway tie the location to the greater Westside and Downtown.

Limited nearby multifamily development and a deep, credit-worthy renter base underpin low vacancy and steady long-term rent growth — the fundamentals that make the Westside a perennial target for private and 1031 exchange capital.

Location Details
Submarket	Beverlywood / Pico-Robertson
ZIP	90035 (MLS Area 9)
Cross Streets	S of Olympic, btwn Robertson & La Cienega
Major Employment	Beverly Hills, Century City, Cedars-Sinai
Retail Corridors	Pico Blvd, Robertson Blvd, Olympic Blvd
Freeway Access	I-10 (Robertson / La Cienega on-ramps)
Zoning	LAR3
Rent Control	City of LA RSO (LARSO)

Property Details

1114 S Sherbourne Dr

Property Overview
Units	7 (4x 1BR + 3x 2BR)
Year Built	1955
Building SF	6,278 (vendor)
Rentable SF	~6,060 (per rent roll)
Stories	2 over parking
Condition	4 of 7 interiors renovated

Site & Zoning
APN	4332-023-003
Lot Size	6,400 SF (0.147 ac)
Zoning	LAR3
Parking	Carport (per MLS: 10 spaces)
Buildings	1
MLS #	26831037 (prior, canceled)

Building Systems
Roof	New (2024)
Exterior Paint	Refreshed (2024)
Heating	Wall units
Cooling	None / wall A/C (per unit)
Laundry	Common (laundry income)
Appliances	Range/oven, refrigerator

Regulatory & Utilities
Rent Control (RSO)	Yes - City of LA (1955 build)
AB1482	Superseded by RSO
Owner Pays	Water/sewer, trash, gas (common), gardening
Tenant Pays	Electric, in-unit gas
Registration	LAHD / SCEP (RSO)
Occupancy	6 of 7 leased (85.7%)

Buyer Profile & Anticipated Objections

Target Investors & Data-Backed Responses

Target Buyer Profile

1031 Exchange Buyers

Westside-focused exchange buyers seeking a stable, land-rich RSO asset with in-place income and a defined mark-to-market path in a location that rarely trades.

Private Local Westside Investors

Long-hold owners who value the Beverlywood / Pico-Robertson address, the recent roof/paint/interior capital, and the durability of RSO cash flow through cycles.

Value-Add / Mark-to-Market Buyers

Investors underwriting the two remaining below-market units and future RSO-allowable increases to drive the yield from the high-4% range toward the high-6% range over the hold.

The combination of a trophy-adjacent Westside location, recent capital already spent, and a proven mark-to-market thesis broadens the buyer pool from pure yield buyers to location-and-appreciation buyers alike.

Anticipated Objections

"It's rent-controlled - the upside is capped."

Four of seven units already turned to market between January and June 2026 at $2,395–$3,068, proving the market rents are real. Two long-tenured units remain ~$1,000–$1,350/mo below market - roughly $49,000/yr of embedded upside captured on natural turnover, plus annual RSO-allowable increases.

"The reported expenses look low - no taxes shown."

Correct - the seller's Chase operating statements carry no property tax (a low Prop-13 basis) and no management. Our underwriting reassesses taxes at 1.25% of price and adds a 4% management line, so the ~4.9% going-in cap is on a fully-loaded, reassessed basis.

"It's a 1955 building - what about deferred capital?"

The two largest near-term capital items are already handled: a new roof (2024) and fresh exterior paint (2024), with four unit interiors renovated. That materially lowers a buyer's first-five-year capital reserve versus comparable unrenovated vintage stock.

Sale Comparables

Vetted Pico-Robertson / Beverlywood Sold Set

Comparable set drawn from the LAAA Team's own Marcus & Millichap sale of 1010 S Bedford St and its underwritten sold-comp file for the immediate submarket. Several comps sit within blocks of the subject — including 919 S Sherbourne Dr, on the same street.

Address	Submarket	Yr	Units	Sale Price	$/Unit	$/SF	Cap	Close
1. 1010 S Bedford St JUST CLOSED · LAAA TEAM	Pico-Robertson	1963	12	$3,650,000	$304,167	$283	5.16%	2026
2. 1110 S Oakhurst Dr	Beverlywood-adj.	1966	13	$4,495,000	$345,769	$322	5.24%	May 2025
3. 650 S La Jolla Ave	Beverly Grove · 90048	1928	12	$4,300,000	$358,333	$352	5.41%	Mar 2025
4. 1036 S Wooster St	Beverlywood	1965	5	$2,100,000	$420,000	$343	—	Dec 2025
5. 1111 S Holt Ave	Pico-Robertson	1953	6	$1,785,000	$297,500	$386	5.04%	Dec 2025
6. 919 S Sherbourne Dr	Pico-Robertson	1958	5	$2,240,000	$448,000	$390	4.96%	Nov 2025
7. 1026 S Shenandoah St	Beverlywood	1954	6	$2,152,000	$358,666	$407	5.02%	Oct 2025
8. 828 S Holt Ave	Pico-Robertson	1964	5	$2,034,000	$406,800	$365	—	Mar 2026
Average (7 sold comps, #2–8)				$2,729,429	$376,438	$366	5.13%	—

1. 1010 S Bedford St — SOLD by the LAAA Team (just closed). Our own Marcus & Millichap closing and the single most relevant trade in the submarket: a 1963-built, elevator-served 12-unit Pico-Robertson building sold for $3,650,000 ($304,167/unit, $283/SF, 5.16% cap). The campaign generated over 15 property tours and 6 written offers across a disciplined four-month, ~10-buyer process (listed $3,900,000, reduced to $3,800,000 then $3,725,000), and closed all-cash in a seven-day escrow to meet a buyer's 1031 exchange deadline — direct, first-hand evidence of live demand and pricing in this exact pocket.

6. 919 S Sherbourne Dr — The most location-relevant comp: a 1958 5-unit on the subject's own street, sold Nov 2025 at $2,240,000 ($448,000/unit, $390/SF, 4.96% cap). Its tight cap and high per-unit basis on a smaller building underscore the strength of the immediate Sherbourne rental pocket.

2–3. 1110 S Oakhurst Dr & 650 S La Jolla Ave — The two larger 12–13 unit trades ($345,769 and $358,333/unit at 5.24% and 5.41% caps) frame the going-in yield band for institutional-scale RSO product in the pocket.

4, 5, 7, 8. Wooster, Holt & Shenandoah — The cluster of 5–6 unit 1953–65 walk-ups ($297,500–$420,000/unit; 5.02%–5.04% caps where reported) brackets the subject's size and vintage most closely and anchors the $/SF range ($343–$407).

Averages exclude the featured 1010 S Bedford sale and are computed on the seven sold comps (#2–8). Cap rates shown where reported by the closing file.

On-Market Comparables

Active Demand & the Pricing Ceiling

Address	Submarket	Yr	Units	List Price	$/Unit	Cap	Status
1. 1017 S Shenandoah St	Pico-Robertson	1955	6	$1,995,000	$332,500	5.76%	Active
2. 1023 S Bedford St	Beverlywood-adj.	1955	6	$1,695,000	$282,500	5.02%	Active
3. 1526 S Wooster St	Beverlywood	1958	5	$2,695,000	$539,000	4.42%	Active
4. 6082 W 18th St	Faircrest / Mid-City	2023	6	$3,995,000	$665,833	5.72%	Active
5. 1135 S Corning St	Beverlywood-adj.	1938	4	$1,495,000	$373,750	3.06%	Active
6. 8616 Gregory Way	Pico-Robertson	1960	5	$2,299,000	$459,800	3.30%	Active
Average (6 active comps)				$2,362,333	$442,230	4.55%	—

The most directly comparable active listing is 1017 S Shenandoah St — a 1955-built, 6-unit Pico-Robertson RSO building asking $1,995,000 ($332,500/unit) at a 5.76% cap. It is the pricing-ceiling reference for unrenovated vintage RSO product; the subject commands a premium above it for its recent roof, exterior paint, and four renovated interiors, plus a larger seven-unit count. The higher per-unit actives (Wooster at $539K/unit, Gregory Way at $460K/unit, and the 2023 new-construction W 18th at $666K/unit) reflect smaller buildings, boutique/new-build positioning, and lower going-in caps — showing that buyers in this pocket routinely pay up for quality and location. Against this active band, the subject's $2,295,000 / $327,857 per unit is positioned to clear inside the market rather than sit — a contrast to the prior listing of this same asset, which was canceled at $2,398,000 after only 22 days without a full mark-to-market and two-firm marketing platform behind it.

Financial Analysis

Investment Underwriting

Unit Mix & Rent Roll

Source: Chase Commercial Term Lending rent roll dated 6/15/2026. Market rents per MLS #26831037 projected rents.

Unit	Type	SF	Current Rent/Mo	Rent/SF	Market Rent/Mo	Status / Notes
1	1BR / 1BA	650	$1,540	$2.37	$2,550	Occ. since 2012 · below-market RSO
2	1BR / 1BA	850	$1,205	$1.42	$2,550	Long-term occ. · below-market RSO
3	2BR / 1.5BA	960	$3,100	$3.23	$3,200	Vacant · asking (renovated)
4	2BR / 1BA	940	$3,068	$3.26	$3,200	Leased 6/2026 · renovated
5	1BR / 1BA	850	$2,395	$2.82	$2,550	Leased 5/2026 · renovated
6	1BR / 1BA	850	$2,395	$2.82	$2,550	Leased 1/2026 · renovated
7	1BR / 1.5BA	960	$2,030	$2.11	$3,200	Occ. since 2015 · RSO
Total	7 units	6,060	$15,733/mo	$2.60	$19,800/mo	85.7% occ. · +$48,804/yr upside

Current GSR $188,796/yr • Market GSR $237,600/yr • plus ~$600/yr laundry income. Embedded mark-to-market upside ~26%.

Operating Statement (Reassessed — In-Place)

Income	Annual	Per Unit	$/SF	% EGI
Gross Scheduled Rent [1]	$188,796	$26,971	$30.07	-
Other Income (Laundry) [2]	$600	$86	$0.10	-
Less: Vacancy / Collection (3%)	($5,664)	($809)	$0.90	-
Effective Gross Income	$183,732	$26,247	$29.27	100%

Expenses	Annual	Per Unit	$/SF	% EGI
Real Estate Taxes [3]	$28,688	$4,098	$4.57	15.6%
Insurance [4]	$5,843	$835	$0.93	3.2%
Water & Sewer [5]	$4,772	$682	$0.76	2.6%
Trash, Gas & Electric [5]	$6,959	$994	$1.11	3.8%
Repairs & Maintenance [6]	$8,400	$1,200	$1.34	4.6%
Gardening & Contract Services [7]	$1,200	$171	$0.19	0.7%
Management (4% of EGI) [8]	$7,349	$1,050	$1.17	4.0%
Licenses & RSO Fees [9]	$774	$111	$0.12	0.4%
Reserves ($250/unit) [10]	$1,750	$250	$0.28	1.0%
Total Operating Expenses	$65,735	$9,391	$10.47	35.8%
Net Operating Income	$117,997	$16,857	$18.80	64.2%

Notes to Operating Statement

[1] Gross Scheduled Rent: In-place scheduled rent per the Chase rent roll (6/15/26): $15,733/mo × 12. The vacant Unit 3 is carried at its $3,100 asking rate. Full market GSR of $237,600 is shown in the pricing pro forma.

[2] Other Income: Common laundry income per Chase operating history ($50/mo).

[3] Real Estate Taxes: LA County reassesses to purchase price at close; shown at 1.25% of the $2,295,000 list price. The seller's statements carry $0 taxes (low Prop-13 basis).

[4] Insurance: 2025 Chase actual ($5,843).

[5] Utilities: Water/sewer, trash, common gas & electric per 2025 Chase actuals; tenants pay in-unit electric/gas.

[6] Repairs & Maintenance: Normalized to ~$1,200/unit. New roof (2024) and 4 renovated interiors reduce forward turnover cost.

[7] Contract Services: Gardening (Chase actual) plus pest/quarterly service.

[8] Management: Market-normalized at 4% of EGI (seller self-managed; not in historical statements).

[9] Licenses & RSO Fees: LAHD/SCEP registration & city business tax per Chase actual.

[10] Reserves: $250/unit replacement reserve.

Seller's non-recurring legal/professional and unit-turn painting (2024–25) are excluded from stabilized NOI. Buyer to verify all actuals in due diligence.

Summary — In-Place Underwriting at $2,295,000

Operating Data
Price	$2,295,000
Down Payment (40.5%)	$928,345
Number of Units	7
Price / Unit	$327,857
Price / SF	$366
Gross SF	6,278
Year Built	1955

Returns
Cap Rate (in-place)	5.14%
Cap Rate (pro forma)	7.12%
GRM (in-place)	12.16x
GRM (pro forma)	9.66x
Cash-on-Cash	2.12%
DSCR	1.20x

Financing (Illustrative)
Loan Amount	$1,366,655
Rate / Amort	6.00% / 30yr
Loan Constant	7.19%
LTV (actual)	59.5%
Constraint	DCR (1.20x)

Income (In-Place)
Gross Scheduled Rent	$188,796
Other Income	$600
Less Vacancy (3%)	($5,664)
Effective Gross Income	$183,732
Operating Expenses	($65,735)
Net Operating Income	$117,997

Cash Flow (Yr 1)
Net Operating Income	$117,997
Debt Service	($98,331)
Net Cash Flow	$19,666
Cash-on-Cash	2.12%
+ Principal Reduction	$16,783
Total Return	3.93%

Pro Forma (Market Rents)
Market GSR	$237,600
Pro Forma NOI	$163,443
Pro Forma Cap	7.12%

Suggested List Price

$2,295,000

5.14%In-Place Cap

$327,857Price / Unit

$366Price / SF

12.16xIn-Place GRM

Pricing Matrix

Purchase Price	In-Place Cap	Cash-on-Cash	$/Unit	$/SF	GRM	DSCR
$2,545,000	4.51%	1.58%	$363,571	$405	13.48x	1.20x
$2,495,000	4.63%	1.66%	$356,429	$397	13.22x	1.20x
$2,445,000	4.75%	1.76%	$349,286	$389	12.95x	1.20x
$2,395,000	4.87%	1.87%	$342,143	$381	12.69x	1.20x
$2,345,000	5.01%	1.98%	$335,000	$374	12.42x	1.20x
$2,295,000	5.14%	2.12%	$327,857	$366	12.16x	1.20x
$2,245,000	5.28%	2.42%	$320,714	$358	11.89x	1.22x
$2,195,000	5.43%	2.79%	$313,571	$350	11.63x	1.26x
$2,145,000	5.59%	3.18%	$306,429	$342	11.36x	1.29x
$2,095,000	5.75%	3.59%	$299,286	$334	11.10x	1.33x
$2,045,000	5.92%	4.01%	$292,143	$326	10.83x	1.37x

Opinion of Value — Trade Range

$2,250,000 — $2,400,000

Pricing Rationale

The suggested list price of $2,295,000 reflects a 5.14% in-place cap rate — a disciplined, buyer-credible going-in yield the LAAA Team just proved out in this exact submarket. Our own just-closed sale of 1010 S Bedford St (12-unit, 1963, Pico-Robertson) traded at a 5.16% cap, and the seven vetted Pico-Robertson / Beverlywood sold comps average a 5.13% cap; against that evidence $2,295,000 is well-supported for a smaller, recently-recapitalized asset carrying a clear mark-to-market path to a 7.1% cap at stabilization.

On a per-unit basis ($327,857/unit), the price sits meaningfully below the seven-comp sold average of $376,438/unit — including 919 S Sherbourne Dr, on the subject's own street, at $448,000/unit — leaving room for a buyer while defending the seller's number. On price-per-SF ($366/SF) the subject prices right at the comp-set average of $366/SF, and on cap rate (5.14%) it is in line with the 5.13% sold-comp average. The prior listing of this same asset was canceled at $2,398,000 after only 22 days; re-presented at a market-clearing 5.14% in-place cap with a full mark-to-market and a two-firm marketing platform, $2,295,000 is built to sell within a 60–90 day window.

Assumptions & Conditions: This opinion of value is based on the seller-provided Chase operating history and rent roll (6/15/26), MLS #26831037, and reassessed underwriting. Financing shown is illustrative (6.00%, 30-year amortization, 60% max LTV, 1.20x minimum DCR). Comparable sale and on-market sets are compiled from public listing and closed-sale sources (LoopNet, Redfin, apartments.com, brokerage records) and the LAAA Team's own closings, and should be confirmed against CoStar / MLS prior to final positioning. Final terms, prorations, and net proceeds depend on the executed contract and close date. Buyer to verify all figures in due diligence.