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 residential units, 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-square-foot RA-1-RIO development parcel in West Hills with a complete architectural set submitted under California's SB 1123 ministerial subdivision pathway. The plans entitle 10 detached three-story single-family dwellings arranged in a small-lot configuration with five attached accessory dwelling units (ADUs), for a total of 15 residential units across approximately 16,603 SF of habitable area (exclusive of garages and ADUs).
0.48 acres
River Implementation Overlay
ZI-2452 TPA · CEQA exempt
15 units 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 (363–370 SF each).
- 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.
- Zero parking required within 1/2 mile of major transit stop — per TPA designation; project elects to provide attached two-car garages per parcel anyway, supporting marketability to retail end-users.
- 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 | Conservative $650/SF + $150K ADU | Base $675/SF + $200K ADU | Aggressive $700/SF + $250K ADU |
|---|---|---|---|---|---|---|
| Parcel 1 (corner) | 2,210 | 1,617 | 370 | $1,201,000 | $1,291,000 | $1,382,000 |
| Parcel 2 | 1,856 | 1,617 | 122 | $1,201,000 | $1,291,000 | $1,382,000 |
| Parcel 3 | 1,856 | 1,612 | 122 | $1,198,000 | $1,288,000 | $1,378,000 |
| Parcel 4 | 1,750 | 1,678 | 343 | $1,241,000 | $1,333,000 | $1,425,000 |
| Parcel 5 | 1,750 | 1,678 | 343 | $1,241,000 | $1,333,000 | $1,425,000 |
| Parcel 6 | 1,856 | 1,605 | — | $1,043,000 | $1,083,000 | $1,124,000 |
| Parcel 7 | 1,856 | 1,605 | — | $1,043,000 | $1,083,000 | $1,124,000 |
| Parcel 8 | 2,933 | 1,473 | — | $957,000 | $994,000 | $1,031,000 |
| Parcel 9 | 1,936 | 1,473 | — | $957,000 | $994,000 | $1,031,000 |
| Parcel 10 (rear) | 2,611 | 1,249 | — | $812,000 | $843,000 | $874,000 |
| Gross sellout (per-parcel sum) | 20,614 | 15,607 | 1,300 | $10,894,000 | $11,533,000 | $12,176,000 |
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 |
multiple | n/a | $1,715,000 | — | Aug 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 |
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 | 1,300 SF × $275/SF | $358,000 |
| Hard construction — garages | 4,500 SF × $150/SF | $675,000 |
| Hard cost subtotal | $5,599,000 | |
| 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 | $770,000 |
| Contingency | 5% of hard + site | $301,000 |
| G&A, project mgmt | 3% of hard | $168,000 |
| Total development cost (ex-land, ex-profit) | $7,756,000 |
Scenario — Residual Land Value
after 20% developer margin
after 20% developer margin
after 20% developer margin
Base-Case Full Waterfall
| Line | Amount | Notes |
|---|---|---|
| Gross sellout — 10 SFRs | $11,207,000 | 16,603 SF × $675/SF |
| ADU value uplift (5 × $200K) | $1,000,000 | Carry on host home or income |
| Gross revenue | $12,207,000 | |
| Less: marketing & sales (5%) | ($610,000) | Listing brokerage + closing costs |
| Net revenue | $11,597,000 | |
| Less: total dev cost (ex-land) | ($7,756,000) | From stack above — $275/SF residential, $150/SF garages, $500K soft |
| Available for land + profit | $3,841,000 | |
| Less: developer profit @ 20% of cost | ($1,551,000) | Cautious SFV merchant-build margin |
| Residual land value (base case) | $2,290,000 | $110/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.
Defensible List Range
Strategic note: The recommended band brackets the base-case residual land value ($2.29M) on the low end and approaches the aggressive-case residual ($2.92M) on the high end. Targeting $2.35M list (~$112/lot-SF) positions the asset at a meaningful premium to the bidless $48–$50/SF raw-land cohort while staying inside what a disciplined merchant builder can underwrite at a $675–$700/SF exit with a 20% margin. Note that a merchant builder accepting a 15% margin (more typical of an experienced small-lot operator) would underwrite the same exit at a ~$2.68M base-case residual — supporting the upper end of the band. 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) should generate competitive offers within the band.
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
