Executive Summary
This analysis values 6540 N Shoup Ave in West Hills as a 10-home, ministerially-approved SB 1123 small-lot subdivision with five attached ADUs — 15 total homes, 3-story product, designed by JZA Architecture and currently in PZA review (Vesting Application 4/17/2026). The valuation reverse-engineers a developer's residual land value from the West Hills/Canoga Park finished-product comp set and forward-tests it against active competing supply.
Subject Property
Marcus & Millichap, in cooperation with LA Apartment Advisors, is pleased to present 6540 N Shoup Avenue — a 20,909 SF West Hills development parcel with a complete architectural set submitted under California's SB 1123 ministerial subdivision pathway — 10 detached three-story homes plus five attached ADUs (on parcels 1–5), 15 homes in total across approximately 16,603 SF of habitable area (exclusive of garages and ADUs).
River Implementation Overlay
ZI-2452 TPA · CEQA exempt
5 of 10 homes have ADUs · 15 total
Allowable: 17,350 SF
1.25 FAR base
Jeff Zbikowski, AIA
PZA Review Set
Built 1954 · to be demolished
Project Highlights
- Fully designed, plans-in-process under SB 1123 — California's 2024 small-lot subdivision streamlining law (operative July 1, 2025) permits up to 10-unit ministerial subdivisions on vacant single-family zoned land within a Transit Priority Area. The parcel sits within ZI-2452 TPA, qualifying for ministerial (no-discretion) review and CEQA exemption.
- 10 detached 3-story single-family dwellings ranging 1,249 SF to 2,113 SF (avg 1,660 SF), each with attached two-car garage and rooftop deck; five parcels include attached ADUs (343–370 SF each, 1,782 SF total).
- Setback waivers requested via SB 1123 — 4-foot side/rear yards across parcels 1–7 and parcel 10, with full front-yard waiver on parcel 1. Bulk and FAR are within base RA-1 envelope on a per-parcel basis.
- Bonus incentive requested — 1,750 SF single-family dwelling on each parcel exclusive of ADUs and garage, with project requesting waiver for 25' building line (front yard) reduction.
- Existing improvement: 1954 vintage 3BR/2BA single-family home to be demolished as part of site preparation; no tenants to relocate, no affordable replacement obligation.
- West Hills location — the highest-priced submarket on Shoup Avenue. Direct neighbor (6414 Shoup) closed at $939,000 in Feb 2025 as a vintage 3/2 SFR.
Site Plan (Sheet A000)
Building Sections & Elevations
Floor Plans & Area Calculations
Per-Parcel Sellout Program
The architectural set defines 10 distinct parcels, each with its own SFR (and in five cases an attached ADU). Sellout pricing applies the comp-derived $/SF band to each parcel's net habitable area.
| Parcel | Lot SF | SFR SF | ADU SF | Total Sellable SF | Sellout $650/SF |
|---|---|---|---|---|---|
| Parcel 1 (corner) | 2,210 | 1,617 | 370 | 1,987 | $1,292,000 |
| Parcel 2 | 1,856 | 1,617 | 363 | 1,980 | $1,287,000 |
| Parcel 3 | 1,856 | 1,612 | 363 | 1,975 | $1,284,000 |
| Parcel 4 | 1,750 | 1,678 | 343 | 2,021 | $1,314,000 |
| Parcel 5 | 1,750 | 1,678 | 343 | 2,021 | $1,314,000 |
| Parcel 6 | 1,856 | 1,605 | — | 1,605 | $1,043,000 |
| Parcel 7 | 1,856 | 1,605 | — | 1,605 | $1,043,000 |
| Parcel 8 | 2,933 | 1,473 | — | 1,473 | $957,000 |
| Parcel 9 | 1,936 | 1,473 | — | 1,473 | $957,000 |
| Parcel 10 (rear) | 2,611 | 1,249 | — | 1,249 | $812,000 |
| Gross sellout (per-parcel sum) | 20,614 | 15,607 | 1,782 | 17,389 | $11,303,000 |
Comparable Sales — Finished Product
The pricing argument anchors to recent 3-bedroom single-family closings in West Hills 91307 and adjacent Woodland Hills. New-construction product commands a 10–20% premium to the existing-stock $/SF band shown below.
Closed Sales — West Hills 91307 SFRs
| Address | BD/BA | SF | Sale Price | $/SF | Date | Status |
|---|---|---|---|---|---|---|
| 6414 Shoup Ave, West Hills |
3 / 2 | 1,771 | $939,000 | $530 | 2/18/2025 | Closed |
| 7500 Sale Ave, West Hills |
3 / 2 | 1,358 | $865,000 | $637 | 2/18/2026 | Closed |
| 23861 Victory Blvd, West Hills |
3 / 2 | 1,160 | $800,000 | $690 | 1/15/2026 | Closed |
| 7137 Shoup Ave #22, West Hills |
3 / 2.5 | 1,600 | $685,000 | $428 | 8/4/2025 | Closed |
| 7225 Shoup Ave #1 (Sherman Shoup Condos), West Hills |
3 / 2 | 1,221 | $619,000 | $507 | 2/28/2025 | Closed |
| 22452 Dolorosa St, Woodland Hills 91367 |
n/a | 1,310 | $1,715,000 | $1,309* | 8/6/2025 | Closed |
Active New-Construction Comps — West Hills / SFV
| Project | Builder | BD/BA | SF Range | List Price Range | $/SF | Pitch |
|---|---|---|---|---|---|---|
| Sterling at West Hills | Pulte Homes | 4–5 | ~2,200–3,000 | $1.10M–$1.60M | $500–$650 | 373-acre gated community, full-size lots |
| Other West Hills New Construction (multiple) | Various | 3–4 | 1,500–2,500 | $950K–$1.45M | $550–$700 | Approx. 17 active new-construction listings tracked in 91307 by Homes.com |
Contour at NoHo — All 10 Homes Sold (LightBox Verified)
Contour at NoHo at 6502–6511 N Contour Lane (90 Hamlin Ave entry) in North Hollywood 91606 is the most directly comparable closed-out small-lot subdivision in the San Fernando Valley. Built by Coe Real Estate Group on a single parcel-split, it consists of 10 detached three-story single-family small-lot homes — 3BR / 3.5BA, 2,114–2,154 SF, attached 2-car garage and 4th-floor private rooftop deck — the same product type and unit count proposed at 6540 Shoup.
Group
Jan–Jul 2025
Rooftop deck + 2-car garage
Project Renderings
All 10 Closed Sales — Itemized
| # | Address | APN | Bldg SF | Lot SF | Sold Price | $/SF | Sold Date |
|---|---|---|---|---|---|---|---|
| 1 | 6502 N Contour Ln | 2322-022-030 | 2,154 | 2,036 | $1,096,000 | $509 | 4/3/2025 |
| 2 | 6503 N Contour Ln | 2322-022-025 | 2,154 | 2,036 | $1,089,000 | $506 | 4/30/2025 |
| 3 | 6504 N Contour Ln | 2322-022-029 | 2,114 | 1,286 | $940,000 | $445 | 1/16/2025 |
| 4 | 6505 N Contour Ln | 2322-022-024 | 2,114 | 1,286 | $934,000 | $442 | 3/14/2025 |
| 5 | 6506 N Contour Ln | 2322-022-028 | 2,114 | 1,286 | $930,000 | $440 | 1/24/2025 |
| 6 | 6507 N Contour Ln | 2322-022-023 | 2,114 | 1,286 | $959,000 | $454 | 4/21/2025 |
| 7 | 6508 N Contour Ln | 2322-022-027 | 2,114 | 1,286 | $930,000 | $440 | 2/21/2025 |
| 8 | 6509 N Contour Ln | 2322-022-022 | 2,114 | 1,286 | $939,000 | $444 | 6/4/2025 |
| 9 | 6510 N Contour Ln | 2322-022-026 | 2,114 | 2,036 | $999,000 | $473 | 7/17/2025 |
| 10 | 6511 N Contour Ln | 2322-022-021 | 2,114 | 2,035 | $1,000,000 | $473 | 4/1/2025 |
| Average / Total (10 homes) | 2,122 | 1,586 | $981,600 avg $9.82M total |
$462 | 6-mo sellout | ||
Read-Through for 6540 Shoup
Adjusting for submarket: West Hills 91307 resale $/SF runs $530–$690/SF vs North Hollywood 91606 resale at ~$430–$500/SF — a 25–35% submarket premium. Applied to Contour's $462/SF blended, that puts 6540 Shoup new-construction exit at $580–$625/SF. Note: 6540 Shoup homes average 1,660 SF (vs Contour at 2,122 SF) — smaller homes typically command a 10–15% $/SF premium, supporting a $625–$700/SF achievable strike zone. The BOV's $650/SF base case sits squarely in this evidence band.
Land math: Contour delivered 10 homes on 15,860 SF of subdivided lot. 6540 Shoup delivers 10 homes on 20,909 SF (32% more land), supporting slightly larger product mixes and corner premiums on more parcels.
Rent Comps — SFRs and ADUs
A developer evaluating 6540 Shoup may consider a build-to-rent (BTR) hold strategy as an alternative to individual sell-out. The rent comps below establish the market rent ceiling for new-construction 3BR SFRs and 300–430 SF detached ADUs in the West Hills 91307 submarket, then back-solve to project NOI and BTR exit value at market cap rates.
SFR Rent Comps — West Hills 91307 (3-Bedroom)
| Address | BD/BA | SF | Monthly Rent | $/SF/Mo | Notes |
|---|---|---|---|---|---|
| 22650 Sherman Way, West Hills | 3 / 2 | n/a | $6,000 | — | Newly remodeled SFR |
| 23020 Haynes St, West Hills | 3 / 2 | 1,354 | $5,250 | $3.88 | Single-family |
| 22558 Schoolcraft St, West Hills | 3 / 2 | 1,173 | $4,650 | $3.96 | Single-family |
| 23823 Victory Blvd, West Hills | 3 / 2 | 1,700 | $4,195 | $2.47 | Single-family |
| 5520 Shoup Ave, Woodland Hills 91367 |
3 / 2 | 1,215 | ~$4,500–$5,000 |
$3.70–$4.12 | Brand new construction (2024–25) |
| Median / Range | ~1,360 | $4,650–$5,500 | $3.70–$3.96 | 4 of 5 are existing stock; new-build trades 15–20% above | |
ADU Rent Comps — West Hills / Canoga Park (300–430 SF)
| Address | Type | SF | Monthly Rent | $/SF/Mo | Notes |
|---|---|---|---|---|---|
| 7462 Sausalito Ave, West Hills | 1BR / 1BA | 400 | $1,800 |
$4.50 | Detached, parking incl. |
| 23316 Balmoral Ln #23318, West Hills | Studio | 400 | $1,800 | $4.50 | Detached ADU |
| 6516 Cleomoore Ave, West Hills | ADU | 430 | ~$1,950 |
$4.53 | Updated, private entrance |
| Canoga Park (new detached studio ADU) | Studio | ~400 | $2,195 | $5.50 | Brand-new detached cottage |
| Median / Range | ~400 | $1,800–$2,200 | $4.50–$5.50 | New-build ADU trades to top of band | |
Build-to-Rent — Project NOI & Exit Value
Applied to the 6540 Shoup program (10 SFRs averaging 1,660 SF + 5 ADUs averaging ~300 SF), market rents back-solve as follows:
| Line | Per Unit | Total Annual | Notes |
|---|---|---|---|
| 10 SFRs — gross rent | $5,000/mo | $600,000 | New-build premium over existing stock median; conservative |
| 5 ADUs — gross rent | $1,800/mo | $108,000 | Mid-band of 300–400 SF ADU comps |
| Gross Scheduled Rent | $708,000 | ||
| Less: vacancy / collection loss (5%) | ($35,400) | Conservative for new-build market | |
| Effective Gross Income | $672,600 | ||
| Less: operating expenses (32%) | ($215,200) | Property tax (reassessed), insurance, R&M, mgmt, reserves | |
| Net Operating Income (Year 1) | $457,400 | $45,740 per parcel |
Where BTR matters: ADU rents ($1,800–$2,200/mo per unit) capitalize at a 5.5% cap to ~$245K per unit on a hold basis — comfortably above the implied $232K per ADU embedded in the $650/SF sellout (363 SF avg × $650 = $236K). The for-sale strategy therefore prices ADUs in line with their capitalized hold value, not at a discount.
Developer Yield — Underwriting
The valuation reverse-engineers a developer's residual land value by deducting construction, soft, financing, and a target margin from gross sellout. Three exit-pricing scenarios bracket the land value.
Development Cost Stack
| Line Item | Basis | Amount |
|---|---|---|
| Hard construction — SFRs | 16,603 SF × $275/SF | $4,566,000 |
| Hard construction — ADUs | 1,782 SF × $275/SF | $490,000 |
| Hard construction — garages | 4,500 SF × $150/SF | $675,000 |
| Hard cost subtotal | $5,731,000 | |
| Site work, utilities, hardscape | $20/SF site × 20,909 SF | $418,000 |
| Soft costs — CDs, permits, fees, A&E | flat | $500,000 |
| Financing — interest carry | ~10% of total cost | $785,000 |
| Contingency | 5% of hard + site | $307,000 |
| G&A, project mgmt | 3% of hard | $172,000 |
| Total development cost (ex-land, ex-profit) | $7,913,000 |
Base Case — Residual Land Value
Base-Case Full Waterfall
| Line | Amount | Notes |
|---|---|---|
| Gross sellout — 10 SFRs | $10,792,000 | 16,603 SF × $650/SF |
| Gross sellout — 5 ADUs | $1,158,000 | 1,782 SF × $650/SF |
| Gross revenue | $11,950,000 | |
| Less: marketing & sales (5%) | ($598,000) | Listing brokerage + closing costs |
| Net revenue | $11,352,000 | |
| Less: total dev cost (ex-land) | ($7,913,000) | From stack above — $275/SF residential, $150/SF garages, $500K soft |
| Available for land + profit | $3,439,000 | |
| Less: developer profit | ($1,439,000) | SFV merchant-build margin |
| Residual land value (base case) | $2,000,000 | $96/lot-SF |
Pricing Recommendation
The market is sending two clear signals: (1) finished new-construction 3BR product in West Hills trades into a $700–$800/SF strike zone, and (2) raw SB1123-eligible land in the SFV is asking $48–$50/SF and not transacting — the 10810 Woodley site has been sitting at $1.27M ($48.63/SF) for 190+ days bidless. Subject differentiates from raw-land competition by carrying an actively-processing PZA Review Set and an explicit 10-home unit count, which compresses a developer's entitlement risk and unlocks a real premium.
Recommended List Price
Strategic note: $2.0M list sits at the base-case residual land value — a clean strike that prices the asset at what a disciplined merchant builder can underwrite to a $650/SF exit. Submarket premium (West Hills vs. NoHo) and smaller home SF in this project both support a $625–$700/SF achievable strike, validated by the Contour at NoHo evidence band after adjustments. Expect competitive offers within a 30–45 day marketing cycle to small-lot developers (Sabag/6540 Shoup LLC original team, Pattern.LA, JZA's own developer network, plus repeat SFV merchant builders).
The LA Apartment Advisors Team
LA Apartment Advisors (LAAA) is a Marcus & Millichap investment sales team specializing in multifamily, land, and for-sale development transactions across Los Angeles County. With 458+ transactions and over $1.46 billion in closed volume, we help property owners make confident investment decisions — whether buying, selling, or exploring the market.
(Trailing 3 Years)
Glen Scher is a Senior Managing Director at Marcus & Millichap and co-founder of the LAAA Team. A UC Santa Barbara graduate in Economics, Glen launched his career in 2014 and earned Rookie of the Year from the SFV Business Journal by 2016. A former Division I golfer, he captured three collegiate titles and was named UCSB Male Athlete of the Year.
Filip Niculete is a Senior Managing Director at Marcus & Millichap and co-founder of the LAAA Team. Born in Romania and raised in the San Fernando Valley, Filip studied Finance at San Diego State University and began his career at Marcus & Millichap in 2011. Known for execution, integrity, and relentless work ethic, Filip and the LAAA Team consistently lead the market in active inventory across Los Angeles.
Team Members
