How do brokers actually value a Los Angeles apartment building?
A real multifamily valuation prices the building three ways and takes the highest defensible number: (1) in-place income — what current rents support at today's cap rates; (2) market-rent potential — what a value-add buyer pays for the upside after honest renovation and turnover math; and (3) land value — what a developer pays for the dirt under TOC or ED1 density rules. Online estimates fail on LA multifamily because they see none of the three: not the true rent roll, not the regulation, not the zoning upside.
The inputs that move the number.
Actual rent roll versus market rents (loss-to-lease), RSO or AB 1482 status, expense reality at the buyer's new tax basis, retrofit status, unit mix, lot size and zoning tier, and the comp set that matters — closed sales, not asking prices. Two buildings with identical income can differ 25% in value on regulation and land alone.
Why the honest number wins.
A valuation inflated to win the listing costs the seller months of stale marketing and a public price cut — buyers smell both. I give the number I can defend in escrow, with the math attached. Sometimes that number says "hold" or "refinance instead," and I say that too; owners remember who told them the truth.
What do I need to provide for a valuation?
The address is enough to start. A rent roll makes it sharper. Within 48 hours you get closed comps, a rent survey within blocks, the as-is and upside numbers, and the play I would run if the building were mine.
Does a valuation obligate me to list?
No. The valuation is free and confidential — most owners sit on it for months. It is how you find out whether I know your block.
SHAYA LOWENSTEIN · LYON STAHL INVESTMENT REAL ESTATE · DRE #01942326 · (323) 944-2221