This came in at 9:15 AM this morning from Michael Sterman at Marcus & Millichap. 14 units on Camellia in North Hollywood, 1989 construction, $4,295,000. First read from the sheet was that the pitch is clean, the age of the asset does most of the talking. Everything that comes after it is whether the number matches what the rent roll actually does.
The setup
Camellia Ave sits a few blocks east of Lankershim in the 91601 ZIP, walkable to the NoHo Arts District and close to the 101/170 interchange and the Metro B Line. The building is three stories over tuck-under parking, stucco, arched parapets, nothing architecturally unusual for a late-80s LA infill multifamily. The address marker on the facade is clean and the landscaping looks like its been kept up.
Unit mix is four 1-bed/1-bath and ten 2-bed/2-bath. That 2-bed heavy mix is the right mix for NoHo right now, 2+2 is the sweet spot for young couples and roommate pairs priced out of further-south neighborhoods. Select units have balconies and fireplaces per the OM. Central HVAC throughout.
Running the numbers
Here's what the broker is pitching, and here's what the math actually looks like at 80% leverage on current rates:
| Metric | Current | Market (Proforma) |
|---|---|---|
| List Price | $4,295,000 | $4,295,000 |
| CAP | 4.86% | 5.77% |
| GRM | 12.23 | 10.48 |
| Implied Gross Annual | $351,186 | $409,829 |
| Implied Monthly Rent/Unit | $2,090 | $2,439 |
| Delta to "market" | , | +$349/unit, +16.7% |
The current rent implied by the broker's own GRM is about $2,090 a door blended across 1-beds and 2-beds. That is not a crazy number for 1989 NoHo, its defensible. The market number at $2,439 blended is where I want to pause. For a 2+2 at 5712 Camellia, we are being asked to believe a fully turned unit rents in the $2,700-$2,900 range. That is possible. It is not guaranteed. NoHo 2+2 comps in 1985-1995 vintage product have been bouncing between $2,550 and $2,850 depending on finishes and in-unit laundry.
The market CAP of 5.77% works if you can actually hit those rents. At current rates, say 6.25% fixed agency for this size, you are buying a deal that doesnt cover debt on day one. The debt service at 80% LTV on $3.44M is roughly $254K annually. Current NOI on $4.295M at 4.86% CAP is $208,742. You are negative 45K in year one, on paper, before any reserves.
You need the proforma number or a writedown. Those are the two paths.
Why 1989 matters
This is the sentence on the flyer that earns the ask: "Not Subject to the Los Angeles Rent Stabilization Ordinance." LA RSO only applies to buildings with certificates of occupancy issued on or before October 1, 1978. 5712 Camellia was built in 1989. It is not RSO.
That matters because LA RSO caps annual rent increases at inflation with a 4% ceiling, right now most RSO operators are running at 4% annual. Non-RSO buildings in the City of LA still fall under AB 1482, the state cap, which is 5% plus CPI with a 10% hard ceiling. In practice over the last few years non-RSO buildings have run 6-8% annual rent increases where operators pushed. RSO has been capped at 4.
Over a ten year hold, the difference between 4% and 7% annual rent growth is enormous. $2,090/unit at 4% gets you to $3,094 in year ten. At 7% it gets you to $4,111. Same unit, same cost basis. That is the premium the market assigns to non-RSO product, and it is why 1989 build-year gets special treatment on the flyer. Fair.
What an operator sees
Three things jump out from the photo and the offering.
One. Tuck-under parking with gated entry. NoHo does not allow you to skip parking and 14 doors needs at least 14 spaces. Thats fine, but tuck-under is old LA, older than this buildings 1989 age would suggest. If a seismic retrofit has not been done on the soft-story, thats $85K-$180K of work. The flyer does not mention soft-story compliance. Should be asked day one.
Two. "Offered below replacement cost at $282/SF." That is marketing language, and its half-true. Actual replacement cost for 1980s-vintage stucco infill in LA today is $550-$650/SF all-in with land. But you cant buy it at replacement cost, you can only buy at what the capital stack will pay. $282/SF being below "replacement" is true. It is also true that every deal on this flyer format gets that sentence.
Three. Central HVAC throughout. That reads nice. It also means when an air handler goes in year four, its $8-12K per unit to replace and not something any resident is paying for. 1989 equipment is at end-of-life. Budget for it.
Where this trades
My honest read: this lists at $4.295M and it probably trades somewhere between $3.9M and $4.1M, assuming the T-12 shows the rent roll is not disastrous. That puts you at $279K-$293K/door on a 5.1-5.3% CAP current, which is closer to what the LA MF 2026 market is actually supporting for 1989 non-RSO product in NoHo.
For calibration, 1101 W 45th just cleared at $112K a door at a 6.79 CAP in 90037, a 1920s RSO building. Different product, different ZIP, same cycle. Camellia at $279K to $293K a door on a 1989 non-RSO building is not directly comparable, those are two different operator theses, but it tells you where the market is willing to pay the non-RSO premium right now. Roughly 2.5x the per-door on the older RSO asset, which is the trade every non-RSO seller in LA is trying to make this cycle.
Is it interesting? For the right buyer, yes. If you have cash-heavy, you want non-RSO, you believe in NoHo over the next five years, and you are willing to push rents 6-7% annually, this works. If you are levered at 75%+ and need the deal to cover debt day one, keep walking.
I am not a buyer on this at $4.295M. I would want a look at the T-12 and the soft-story status before I said anything more. If the owner moves on price, its a different conversation.
If you are the owner of this asset or one like it and want an operators honest take before you list, email me directly. No charge. I learn from every building I get a look at.