Executive Summary
Ownership asked four questions: what the existing duplex is worth, what it is worth with the City-approved plans for two three-story ADUs, what it is worth as an SB 79 transit site now that Culver City has confirmed an 11-unit base density in writing, and whether spending on feasibility or entitlements would raise the number enough to justify the cost. The short answer is that the property is worth the most today as a duplex sold with its approved ADU plans and the SB 79 finding disclosed, that the developer bid for a single 45-foot-wide lot sits below the duplex bid, and that paying for feasibility or entitlements would spend more than it adds.
The duplex evidence is close and recent. Seven Culver City two-unit buildings of the same vintage closed between February 2025 and June 2026 at $236 to $319 per square foot of land, including two on the subject's own block: 8891 Carson St at $1,350,000 and 8930 Hubbard St at $2,000,000. Applied to 4,782 SF, and allowing for the subject's smaller building, that supports $1,350,000 to $1,500,000 as-is. The approved plans add value because new detached units in this pocket are renting for $5,000 to $6,500 a month: a buyer who builds them owns four units at a 6.3% yield on total cost, which is why the recommended list price is $1,595,000 and the opinion of value with the plans is $1,450,000 to $1,575,000.
The SB 79 story is real and it should be in the marketing, but it prices below the duplex. Culver City land has traded at $164 to $328 per square foot depending on lot size and entitlement, and a residual on a 17-unit density-bonus building here backs into roughly $300 per land SF before the fault-zone study, the cost premium of an elevator building on a 45-foot lot and the affordable units. The 11-unit market-rate version does not clear at all at today's rents and costs. That is the same conclusion the Santa Monica developer gave ownership, and it is why the recommendation is to invite both buyer pools to the same listing rather than to carry the site through entitlement.
Subject Property
Photographs from the June 2021 MLS listing (TheMLS 21-695382); the property has not been photographed for this opinion.
The subject is a 1947 two-unit building on the Lucerne/Higuera side of Culver City, in the grid of small lots between Venice Blvd and Higuera St that the City rezoned for SB 79 transit housing in May 2026. The front unit is a two-bedroom of about 745 SF with an upgraded kitchen, hardwood floors and new windows; the rear unit is a one-bedroom with an updated kitchen and a detached bonus room, and a two-car detached garage sits at the back of the lot. Ownership occupies one unit and rents the other for about $3,500 per month. The 2021 purchase at $1,325,000 set the current tax base, so a buyer at today's value will see property taxes step up.
SB 79, Zoning, ADUs and Rent Control
Four sets of rules decide what this lot is worth to each type of buyer. In order of value impact: the SB 79 transit standards the City adopted in May 2026, the State Density Bonus that stacks on top of them, Culver City's ADU rules that produced the approved two-ADU plan set, and the City's rent control ordinance that governs the existing 1947 units.
SB 79 Tier 2 standards (Culver City interim ordinance, adopted May 26, 2026, effective July 1, 2026)
| Distance from the station | Minimum height | Minimum density | Minimum FAR | On the subject's 4,782 SF |
|---|---|---|---|---|
| Within 200 feet | 85 feet | 140 units per acre | 4.0 | Does not apply (parcel is about 1,400 feet away) |
| Within 1/4 mile | 65 feet | 100 units per acre | 3.0 | 10.98 units, rounded up by the City to 11; 14,346 SF of floor area; about six stories |
| Within 1/2 mile | 55 feet | 80 units per acre | 2.5 | Fallback if the quarter-mile finding were ever revisited: 8.78 units, 11,955 SF |
Culver City's three Tier 2 stops are the Culver City and La Cienega/Jefferson E Line stations and the Venice/Overland bus stop. The City's SB 79 page states that "local and state density bonuses do apply to densities in this table," and the Planning Director has told ownership in writing that all development standards, including the Objective Design Standards and the underlying R2 zoning, "must be modified to allow SB79 projects to develop at full capacity." The City kicked off a longer-term Transit-Oriented Development alternative plan in summer 2026, expected to take about ten months; until it is adopted the interim ordinance governs. Under state law an SB 79 project that meets the objective standards is eligible for ministerial approval, and a local government is not required to grant a Density Bonus height waiver above the SB 79 height, so 65 feet is the practical ceiling here.
How the Density Bonus stacks on the 11-unit base
| Program | Affordable set-aside | Bonus | Units on the subject | Notes |
|---|---|---|---|---|
| SB 79 base | None required by SB 79 for a project of this size | 0% | 11 | The City's written calculation (10.98 rounded up) |
| State Density Bonus, very low income | 15% of base = 2 units at very low income | 50% | 17 | 16.5 rounded up; the maximum standard bonus and the most likely developer program |
| State Density Bonus, low income | 24% of base = 3 units at low income | 50% | 17 | Same yield, more affordable units; usually inferior to the very-low route |
| 100% affordable (AB 1763) | All units affordable except a manager's unit | 80% | 20 | Nonprofit or tax-credit buyer only; not a market bid for this lot |
These are illustrations of the state formula applied to the City's base number. Whether the 11 units are the Density Bonus base, the maximum count, the affordability level and the incentives and waivers available are exactly the questions the City's forthcoming formal determination (the roughly $750 letter ownership has requested) will answer. This opinion treats 17 units as the realistic developer program and 11 as the by-right floor.
The approved ADU plans
Culver City allows up to eight detached ADUs on a lot with existing multifamily units, capped at the number of existing primary units, so two detached ADUs is the maximum here. The code caps a two-or-more-bedroom ADU at 1,200 SF, requires no parking, and does not require owner occupancy; ADUs built after 1995 are outside Culver City rent control (state AB 1482 caps apply). Ownership reports City-approved plans for two three-story ADUs and a contractor estimate of about $680,000 for both. The plan set, its approval date and whether permits have been issued are due diligence items; a buyer will also ask whether the approval addressed the fault-zone question below.
Rent control on the existing units
| Rule | Culver City (Rent Control Ordinance, CCMC 15.09) | Effect on the subject |
|---|---|---|
| Coverage | All rental units with a certificate of occupancy on or before February 1, 1995, except single-family homes, condominiums and townhomes | Both 1947 units are covered once rented by a non-occupant owner |
| Owner-occupied duplex | Exempt from rent stabilization while the owner continuously lives in one unit; an exemption declaration is filed with the Housing Division each July 31 | The exemption is personal to ownership and ends at closing unless the buyer moves in |
| Annual increase | 100% of CPI, floor 2%, ceiling 5%; 3.25% for increases effective June 1, 2026 through June 30, 2027 | The $3,500 unit grows at CPI; the vacant unit is re-rented at market (Costa-Hawkins vacancy decontrol) |
| Just cause and relocation | Just cause required; no-fault relocation of three times the greater of current rent or small-area fair market rent plus $1,000; landlords of three or fewer units pay 50% | A developer must relocate the tenant before demolition; SB 79 also carries its own replacement and protection rules for occupied units |
| Registration | $177 per rental unit per year from July 1, 2026 | About $354 per year as a two-unit rental |
The Four Scenarios Ownership Asked About
Each card values the same parcel through a different buyer's eyes. The indicated values are the broker's opinion as of September 2026 and are preliminary until the unit square footages, the ADU plan set and the City's Density Bonus determination are in hand. The comps behind each number follow in the next three sections.
- Sold as a Culver City duplex to an owner-user or a small investor who wants one unit to live in and one to rent, with the SB 79 upside as a free option.
- Priced on Culver City two-to-four unit sales per square foot and per unit, and on land value per square foot, not on the 2.5% cap rate the rents produce.
- The largest buyer pool of the four, financeable with conventional residential debt, and a 30 to 45 day escrow.
- The same duplex sale, marketed with the City-approved plans for two detached three-story ADUs as a built-in expansion path.
- A buyer who spends about $680,000 plus soft costs owns four units with two of them outside rent control; the plans save that buyer 9 to 12 months and the design and approval fees.
- Culver City's own 2025 print for this product: 4030 La Salle Ave, a vacant lot with permitted duplex-plus-two-ADU plans, sold for $2,050,000 or $304 per land SF.
- Sold to an apartment developer on the City's written 11-unit finding, 65 feet and 3.0 FAR, with the Density Bonus letter in hand if it has issued.
- Priced per land SF and per buildable unit against Culver City and Westside small-site land sales, then checked against a residual: what a 17-unit building is worth finished, less what it costs to build and the builder's margin.
- A 45-foot-wide single lot is the problem the residual exposes: a six-story elevator building over 4,782 SF carries a high cost per unit, and the market-rate 11-unit version does not clear at today's rents and costs.
- Ownership pays for an architectural feasibility study, then a full SB 79 and Density Bonus application, and sells an approved project to a developer or a merchant builder.
- Entitled small-site land on the Westside trades at a premium to raw, but the premium is capped by the same residual: the finished building is worth the same whether the seller or the buyer drew the plans.
- Cost of about $150,000 to $250,000 in architecture, consultants and City fees and 12 to 18 months, plus the fault investigation, for a premium that this analysis shows is thinner than the spend.
Scenario comparison
| Scenario | Indicated value | Per land SF | Cost to get there | Time | Net to ownership vs. Scenario 1 |
|---|---|---|---|---|---|
| 1. Duplex as-is | $1,350,000 to $1,500,000 | $282 to $314 | None | 30 to 45 day escrow | Baseline |
| 2. Duplex with approved ADU plans | $1,450,000 to $1,575,000 | $303 to $329 | Already spent | 30 to 45 day escrow | About $75,000 to $100,000 more; same sale, better story |
| 3. SB 79 site, 11 base / 17 bonus units, unentitled | $1,100,000 to $1,400,000 | $230 to $293 | About $750 for the City letter | 60 to 120 days plus buyer diligence | $150,000 to $250,000 less |
| 4. Entitled 17-unit project | $1,350,000 to $1,700,000 | $282 to $355 | $150,000 to $250,000 plus fault study | 12 to 18 months, then 60 to 120 days | Net $1,150,000 to $1,500,000: no better than Scenario 1, with execution and market risk added |
Net to ownership is the indicated value less the out-of-pocket cost to reach it, before commissions, closing costs and taxes, and before any value of ownership's time. Ranges are the broker's opinion and not an appraisal.
Duplex Comp Analysis: Scenarios 1 and 2
Culver City two-to-four unit buildings of the subject's era trade on land value and owner-user appeal, not on their rents; the caps below run 2.5% to 3.5%. The set is every arm's-length two-unit sale in the 90232 core since January 2025 that shares the subject's profile, ordered by distance, with the two active listings that will compete for the same buyer. Facts are from the LA County Assessor and the MLS; distances are straight-line from the subject.
Closed duplex sales numbered in navy, active listings lettered in blue, land comps L1 to L3 in gold, subject in orange. Land comp L3 (3837 College Ave) is 1.7 miles west at the edge of the frame.
Closed two-unit sales, February 2025 to June 2026
| # | Property / Status | Lot SF | Bldg SF · Units · Built | Price | $/Bldg SF $/Unit | $/Land SF |
|---|---|---|---|---|---|---|
| 1 | 8930 Hubbard StClosed Jun 5, 2026 | 6,264 | 1,754 · 2 · 1940 | $2,000,000 | $1,140 $1,000,000 | $319 |
| Notes:Same block as the subject, 0.1 mile west on a cul-de-sac. A 2+2 front unit and 2+1 rear unit held by one family since the 1960s, sold off-market for cash. The top of the Culver City duplex set on every metric and the ceiling for the subject. | ||||||
| 2 | 8891 Carson StClosed Apr 15, 2025 | 5,724 | 1,860 · 2 · 1947 | $1,350,000 | $726 $675,000 | $236 |
| Notes:0.1 mile north. Same year, same R2 zoning and a similar lot; delivered vacant and marketed "ready to build or invest," bought for cash by an LLC. The closest analog to the subject and a read on what a developer-profile buyer paid for a Wesley-block lot before SB 79 took effect. | ||||||
| 3 | 3102 Reid AveClosed May 8, 2025 | 5,398 | 1,490 · 2 · 1951 | $1,275,000 | $856 $637,500 | $236 |
| Notes:Arts District corner lot near Ivy Station, 0.65 mile northeast; a 2+1 front and 1+1 rear, the subject's unit mix, 80% financed. Sets the floor for a small Culver City duplex on a transit-adjacent lot. | ||||||
| 4 | 4244 Lafayette PlClosed Feb 13, 2025 | 7,692 | 2,418 · 2 · 1953 | $1,835,000 | $759 $917,500 | $239 |
| Notes:Carlson Park, 0.45 mile southwest; five bedrooms across two units on a larger R2 lot, 80% financed. A larger building at the same land price per foot as comps 2 and 3. | ||||||
| 5 | 4158 Baldwin AveClosed Feb 20, 2025 | 6,741 | 1,551 · 2 · 1947 | $1,785,000 | $1,151 $892,500 | $265 |
| Notes:Two blocks from Sony Pictures, 0.8 mile southwest; a 1947 duplex of about the subject's building size on a 6,741 SF lot, bought at 50% loan-to-value by an owner-user. The best per-building-SF read for a small 1947 duplex. | ||||||
| 6 | 4261 Baldwin AveClosed May 29, 2026 | 6,751 | 1,497 · 2 · n/a | $1,702,500 | $1,137 $851,250 | $252 |
| Notes:0.8 mile southwest; 2 bd / 2 ba across two units, first sale since 2000, cash. With comp 5 it brackets small Culver City duplexes at $1,137 to $1,151 per building SF over the last 18 months. | ||||||
| 7 | 4111 Lincoln AveClosed Dec 12, 2025 | 6,750 | 2,335 · 2 · 1954 | $1,959,000 | $839 $979,500 | $290 |
| Notes:0.65 mile southwest; a renovated flip (bought earlier in 2025 for $1,400,000), 2+1 front and 3+2 rear, listed at $1,999,000 and sold after 82 days. Shows what a fully renovated duplex fetches from an owner-user and how long it takes. | ||||||
Active two-unit listings competing for the same buyer
| # | Property / Status | Lot SF | Bldg SF · Units · Built | List Price | $/Bldg SF $/Unit | $/Land SF |
|---|---|---|---|---|---|---|
| A | 8595 Higuera StActive | 5,839 | 1,784 · 2 · 1947 | $1,699,000 | $952 $849,500 | $291 |
| Notes:0.2 mile from the subject, same year, a 40% larger building on a 22% larger lot. This is the listing the subject will be measured against; pricing the subject at $1,595,000 puts it $104,000 below a bigger neighbor. | ||||||
| B | 3414 Fay AveActive | 5,396 | 1,633 · 2 · 1928 | $1,495,000 | $916 $747,500 | $277 |
| Notes:Two 1928 bungalows delivered vacant, 0.65 mile northeast, marketed as R2 "within a half-mile of both the Ivy and La Cienega/Jefferson stations, where state and local development incentives beyond current zoning may be worth exploring": an SB 79 pitch without the label, at $277 per land SF. | ||||||
Sources: LA County Assessor records (APNs 4206-011-007, 4206-012-014, 4205-008-008, 4207-020-009, 4207-014-030, 4207-026-012, 4207-016-002, 4206-001-016, 4205-015-014); Redfin sold and active lists for 90232 and Compass (4113 Lincoln Ave) checked September 14, 2026. Not used: 3635 Wesley St, sold September 25, 2025 at $2,050,000, is a single-family home rebuilt to the studs (1,814 SF per MLS), a renovated-house number rather than a duplex or land number; 8947 Hubbard St, listed at $1,800,000, was bought in June 2025 for $700,000 and is a flip in progress; three late-2024 closings (3949 Tilden, 4141 Lincoln, 4208 Tuller) predate the set.
Subject income and expenses as a two-unit rental
| Unit | Type | Approx. SF | Monthly rent | Basis |
|---|---|---|---|---|
| Front | 2 bd / 1 ba | 745 | $3,500 | Reported by ownership as the rented unit; which unit is rented is to be confirmed |
| Rear | 1 bd / 1 ba plus detached bonus room | ~530 | $2,850 | Broker market estimate; older one-bedrooms nearby ask $2,350 to $3,195; HUD 2027 small-area fair market rent for 90232 is $3,270 |
| Scheduled gross rent | $6,350 / mo · $76,200 / yr | No vacancy factor on a two-unit property | ||
| Line | Annual | Basis |
|---|---|---|
| Property taxes | $18,750 | 1.25% of a $1,500,000 price (tax rate area 3-170; the 2025 bill was $18,866 on the 2021 base) |
| Insurance | $1,677 | LAAA benchmark: $200 per unit plus $1.00 per building SF |
| Repairs and maintenance | $3,000 | $1,500 per unit |
| Water, sewer and trash | $2,400 | Estimate; tenants pay gas and electric |
| Rent registration | $354 | Culver City, $177 per unit |
| Reserves | $500 | $250 per unit |
| Management | $3,048 | 4% of gross rent (a buyer self-managing keeps it) |
| Net operating income | $46,471 | 39% expense ratio; 3.10% cap rate and 19.7x gross rent multiple at $1,500,000 |
The income does not set the price; the land and the buyer's own use do. What the income tells a buyer is that the property carries itself at a conventional 25% down payment with one unit occupied by the owner, and that the $3,500 unit is at market for an older Culver City two-bedroom (the median ask within half a mile is about $3,300, with a range of $2,700 to $4,650).
What the approved ADU plans are worth
Ownership's contractor estimate for the two three-story ADUs is about $680,000; with permits, fees, financing and a contingency the all-in figure is closer to $760,000. New detached units in this pocket are asking $5,000 (a two-story ADU on McConnell Blvd) to $6,500 (a 1,198 SF ADU with a roof deck at 4121 Lafayette Pl). At a conservative $5,000 each, a buyer who pays $1,500,000 for the duplex and builds the ADUs owns a four-unit property with about $196,200 of gross rent, about $143,500 of net operating income and a total basis of about $2,262,000: a 6.3% yield on cost and a 12.7% return on the construction dollars alone. At a 5.25% to 5.50% cap the finished four-plex is worth $2.6M to $2.7M, so the plans create roughly $350,000 to $470,000 of value for the buyer who executes them. That buyer will pay a premium for skipping 9 to 12 months of design and approvals, but not the whole spread, which is why the plans are valued here at $75,000 to $100,000 over the as-is duplex rather than at their full residual. Culver City's own print for this product is 4030 La Salle Ave (land comp L2 below): a vacant lot with fully approved duplex-plus-two-ADU plans sold in May 2025 for $2,050,000, $304 per land SF; the subject with the same plan type and an income-producing duplex already on it is priced here at $303 to $329 per land SF.
Land Comp Analysis: Scenarios 3 and 4
A developer prices this lot per square foot of land and per buildable unit, then checks both against a residual. Culver City has produced three relevant land trades since 2025 and one active land listing, and the Westside has two active listings that use the SB 79 label. No closed sale anywhere in Los Angeles County marketed as an SB 79 site has yet recorded; the law took effect on July 1, 2026 and the label is appearing on listings, not on deeds.
Closed land and redevelopment-site sales
| # | Property / Status | Lot SF | Entitlement at Sale | Price | $/Land SF | Per Buildable Unit |
|---|---|---|---|---|---|---|
| L1 | 4076 Lafayette Pl, Culver City (with 4080)Closed Nov 21, 2025 | 7,698 (15,398 combined) | Land value; 18 by-right, up to 36 with AB 1287; a 40-unit application has since been filed | $2,525,000 ($5,050,000 for both) | $328 | $140,300 at 36 units $126,300 at 40 |
| Notes:Corner of Lafayette Pl and Braddock Dr, 0.45 mile southwest. Two parcels sold together for land value (a 1920 house and a 1923 triplex, 254 feet of frontage), listed at $2,750,000 each and closed at $2,525,000 each after 30 days. The Culver City land ceiling: a double lot, a corner, and a buyer who has since filed for six stories and 40 units. The subject is one 45-foot lot. | ||||||
| L2 | 4030 La Salle Ave, Culver CityClosed May 14, 2025 | 6,752 | Vacant; approved and permitted plans for a duplex plus two ADUs (4 units, about 6,160 SF) | $2,050,000 | $304 | $512,500 at 4 units |
| Notes:0.8 mile southwest near Carlson Park. Listed at $2,290,000, sold after 56 days at 89.5% of ask. A walled, fenced lot with temporary power and water and a fully approved plan set for two 3+4 units of about 2,000 SF with roof decks and two 1,050 SF ADUs. The Scenario 2 comp: a Culver City buyer paid $304 per land SF for the same plan type the subject carries, on a lot with no income in place. | ||||||
| 2 | 8891 Carson St, Culver CityClosed Apr 15, 2025 | 5,724 | Unentitled R2; 1947 duplex delivered vacant, marketed "ready to build or invest" | $1,350,000 | $236 | n/a |
| Notes:Duplex comp 2, repeated here because the LLC buyer and the marketing make it the nearest developer-type purchase to the subject, 0.1 mile north, before the SB 79 standards existed. The raw-land floor for the Wesley block. | ||||||
| L4 | 3608 S Centinela Ave, Mar VistaClosed Nov 2024 | 9,016 | 1944 fourplex; 49-unit, five-story 100% affordable project since filed | $1,900,000 | $211 | $38,800 at 49 units |
| Notes:Three miles west. The affordable-developer per-door mark on the Westside: an LP recapitalized the site in August 2026 with an $8.6M construction loan. Shows what the 100% affordable route (Scenario 3's 20-unit variant) pays per unit, which is a fraction of a market-rate developer's number. | ||||||
| L5 | 11856 Venice Blvd, Mar VistaClosed Jan 20, 2026 | 7,044 | 1948 triplex; marketed LAR3, TOC Tier 1, ED1 eligible, assemblage with 11848 Venice | $1,125,000 | $160 | n/a |
| Notes:2.4 miles west on a boulevard. An assemblage purchase by the neighbor, bought for the combined 14,133 SF site. The low end of Westside transit-corridor land and a reminder that developers pay for assembled frontage, not single lots. | ||||||
Active development-site listings
| # | Property / Status | Lot SF | Entitlement | List Price | $/Land SF | Per Buildable Unit |
|---|---|---|---|---|---|---|
| L3 | 3837 College Ave, Culver City (LAAA Team listing)Active | 7,500 | Unentitled CCR4; up to 21 units with State Density Bonus; 1947 house to be demolished | $1,800,000 | $240 | $85,714 |
| Notes:1.7 miles west. Our own Culver City land listing, reduced from $2,000,000, on a lot 57% larger than the subject with a 70 units-per-acre base zone. Its $240 per land SF and $85,714 per buildable unit are the live Culver City ask for unentitled multifamily land; the subject's 11 base units at that per-unit figure is $943,000, and its 17 bonus units is $1,457,000. | ||||||
| B | 3414 Fay Ave, Culver CityActive | 5,396 | R2, two vacant 1928 bungalows; marketed on transit incentives | $1,495,000 | $277 | n/a |
| Notes:Active duplex comp B, repeated here because it is the only other Culver City R2 lot being offered to developers on the SB 79 thesis, 0.65 mile from the subject and inside the half-mile band of two stations. | ||||||
| L6 | 1656 Sawtelle Blvd, West LA (LAAA Team listing)Active | 7,005 | Cleared, unentitled; about 38 units via MIIP, about 52 with bonus | $2,995,000 | $428 | $78,800 at 38 $57,600 at 52 |
| Notes:The Westside per-land-SF ceiling for a small unentitled site, earned by a unit count three to five times the subject's on a lot only 46% larger. Per buildable unit it is below the subject's Scenario 3 range. | ||||||
| L7 | 2005 4th St, Santa MonicaActive | 5,328 | Three vacant 1924 cottages; listing cites SB 79 and density bonus | $2,195,000 | $412 | n/a |
| Notes:Ocean Park, a block from Main St. The first Westside single lot of the subject's size marketed on SB 79; the ask reflects Santa Monica land values roughly 40% above Culver City's and has not yet found a buyer. | ||||||
| L8 | 1817 Euclid St, Santa MonicaListed Aug 2026 | 7,486 | 1955 five-unit building, four vacant; "within the half-mile transit zone eligible for major development under SB 79" | $2,995,000 | $400 | n/a |
| Notes:Pico District near the 17th St/SMC station. Same pitch as the subject on a bigger lot in a pricier city; at $599,000 per existing unit the seller is asking an apartment price with an SB 79 story attached, which is the structure recommended for the subject. | ||||||
Sources: LA County Assessor (APNs 4207-007-025/-026, 4207-011-018, 4206-012-014, 4248-026-011, 4214-017-033, 4208-022-022, 4205-015-014, 4289-010-027, 4283-029-003); TheMLS 25495919 and SB25135909MR (in the LAAA 3837 College deal file); laaa.com listings; Redfin, Compass, Zillow and Kim Crabb Realty listing pages checked September 14, 2026. Not shown: 1517 15th St, Santa Monica (a 12-story, 32-unit SB 79 filing on a family-trust lot with no sale) and 9000-9020 Venice Blvd (Wiseman Residential's 490-unit SB 79 filing at Venice/Robertson, a large retail site), both news items rather than trades.
Residual check: what a developer can pay for this lot
| Input | 11 units (SB 79 base) | 17 units (15% very low income, 50% bonus) |
|---|---|---|
| Floor area (3.0 FAR on 4,782 SF) | 14,346 SF; 1,304 gross SF per unit | 14,346 SF; 844 gross SF per unit |
| Average rent (new construction, 2 affordable units blended) | $4,000 per unit | $3,450 per unit |
| Net operating income (3% vacancy, 30% expenses) | $358,500 | $477,900 |
| Finished value at a 5.00% cap | $7,170,000 ($651,800 per unit) | $9,558,000 ($562,200 per unit) |
| Cost excluding land ($350/SF hard, 15% soft, 5% contingency, financing, 3% cost of sale) | $6,587,000 | $6,659,000 |
| Residual land value at a 15% developer margin | Negative ($490,000 short) | $1,465,000 ($306 per land SF; $86,200 per unit) |
The 11-unit market-rate program does not work: large units on a small lot cost more than they are worth. The 17-unit density-bonus program backs into about $306 per land SF, in line with the Culver City land comps, before three haircuts the comps did not carry: a fault investigation and any trace setback, the cost premium of a six-story elevator building whose floor plate is about 35 feet wide after setbacks, and the execution risk of a first-generation SB 79 approval. Those are why Scenario 3 is valued at $1,100,000 to $1,400,000 rather than at the residual, and why the developer's number lands below the duplex number. Assumptions are the broker's and are stated so a developer can substitute its own.
Rent Comps
Asking rents within about a mile of the subject as of September 14, 2026. The older two-bedroom set supports the $3,500 in place on the subject's front unit; the older one-bedroom set supports the $2,850 estimate for the rear unit; the new-construction and ADU set is what a buyer would underwrite for the two approved ADUs.
Older small buildings (pre-1980)
| Address | Unit | SF | Asking Rent | Building | Distance |
|---|---|---|---|---|---|
| 4177 Ince Blvd | 2 bd / 1 ba | 800 | $4,650 | 4 units, 1956 | 0.25 mi |
| 3617 Wesley St (subject's block) | 2 or 3 bd unit of a 1965 duplex | n/a | $4,000 | 2 units, 1965 | Same block |
| 4254 Lincoln Ave | 2 bd / 1 ba | 913 | $3,500 | Duplex, 1952 | 0.55 mi |
| 3407 Helms Ave | 2 bd / 1 ba | 1,000 | $3,290 | 4 units, 1976 | 0.3 mi |
| 3351 Caroline Ave, Unit B | 2 bd / 1 ba | n/a | $3,195 | Duplex | 0.3 mi |
| 3429 Caroline Ave, #1 | 2 bd / 1 ba | 800 | $3,100 | 6 units, 1955 | 0.3 mi |
| 4209 Lafayette Pl | 2 bd / 1 ba | 1,000 | $2,995 | Duplex, 1923 | 0.5 mi |
| 4211 Lafayette Pl | 2 bd / 1 ba | 900 | $2,700 | Duplex, 1923 | 0.5 mi |
| 3351 Caroline Ave, Unit A | 1 bd / 1 ba | n/a | $3,195 | Duplex | 0.3 mi |
| 8912 Krueger St | 1 bd / 1 ba | n/a | $2,995 | Small building | 0.2 mi |
| 4065 Lafayette Pl | 1 bd / 1 ba | n/a | $2,498 | Small building | 0.6 mi |
| 4054 Madison Ave, Apt E | 1 bd / 1 ba | 720 | $2,350 | 6 units, 1939 | 0.7 mi |
New construction and ADUs (2020 and later)
| Address | Unit | SF | Asking Rent | Type | Distance |
|---|---|---|---|---|---|
| 4121 Lafayette Pl, Unit C | 2 bd / 2.5 ba | 1,198 | $6,500 | New detached ADU with garage, patio and roof deck in a four-residence project | 0.55 mi |
| 4137 McConnell Blvd, Unit A (Mar Vista) | 2 bd / 2 ba | 900 | $5,000 | New two-story detached ADU, utilities included | 2.2 mi |
| Access Culver City, 8770 Washington Blvd | 1 bd / 2 bd | n/a | $3,845 / $5,250 | Lease-up, four weeks free | 0.2 mi |
| Lana, 10375 Washington Blvd | 1 bd / 2 bd | n/a | $3,748 / $5,278 | Lease-up | 1.3 mi |
| CODA, 3833 Dunn Dr | 1 to 2 bd | 689 to 947 | $3,595 and up | Lease-up | 0.9 mi |
| Geneva at Venice, 9900 Venice Blvd | 1 bd | 539 to 721 | $3,450 and up | Lease-up, four weeks free | 1.0 mi |
| The Goldwyn, 10300 Venice Blvd | 1 bd | 704 | $3,145 | One month free | 1.3 mi |
Sources: Redfin rentals for 90232, Zumper, Craigslist, Apartments.com and Zillow rental listings checked September 14, 2026; Culver City averages per RentCafe as of August 31, 2026 are $3,208 for a one-bedroom (845 SF) and $3,971 for a two-bedroom (1,175 SF). The HUD 2027 small-area fair market rents for ZIP 90232 are $3,270 for a one-bedroom and $4,040 for a two-bedroom. Asking rents are not achieved rents, and the lease-up buildings are offering four to five weeks of concessions.
Key Takeaways
Two closings on the subject's own block, at $1,350,000 and $2,000,000, and five more Culver City 1940s-50s duplexes since February 2025 put the land at $236 to $319 per SF. The developer's residual on this lot lands at about $306 per SF before its haircuts, and the actual land trades that a developer would cite run $164 to $328. The owner-user and small investor set the price here, not the builder.
Approved plans for two ADUs that will rent for $5,000 or more each turn a 3.1% duplex into a 6.3% yield-on-cost four-plex. That is the story that lifts the listing from the $1,350,000 to $1,500,000 as-is band to the $1,595,000 ask, and 4030 La Salle proved in May 2025 that Culver City buyers pay for permitted duplex-plus-ADU plans.
The City's 11-unit finding is genuine and belongs in the offering; it is what makes a developer look. But the 11-unit building does not pencil, the 17-unit building backs into land value at or below the duplex value, and no SB 79 site has yet closed anywhere in the county to prove a premium. Marketing the finding costs nothing; pricing on it would cost a sale.
The Lafayette buyer paid the Culver City land ceiling for a double corner lot with 254 feet of frontage; the Venice Blvd buyer paid the floor to assemble with the neighbor. Six stories on a 35-foot-wide floor plate is the most expensive way to build 17 units, and it is why the developer's bid trails. If the neighbor at 3567 or 3561 Wesley ever sells, the math changes.
An approved 17-unit project might fetch 20% to 30% over raw, or $1,350,000 to $1,700,000, but it costs $150,000 to $250,000 and 12 to 18 months to get there, plus a fault study, in a market where the buyer for the approved project is the same developer who will not pay above the duplex number today. The net is no better than selling now, with more risk.
Up: the City's letter confirming 17 or more units with an FAR waiver; a neighbor willing to sell into an assemblage; a fault study clearing the lot; or a first SB 79 closing on the Westside above $350 per land SF. Down: a fault trace crossing the lot; the ADU approval lapsing; or the 8595 Higuera listing selling below $1,600,000. Each is checkable before launch.
Pricing Recommendation
Basis of the recommendation. The opinion is built on Scenario 2. The as-is duplex is valued from the seven closed Culver City two-unit sales: $236 to $319 per land SF on 4,782 SF is $1,128,000 to $1,525,000, and $1,137 to $1,151 per building SF for the two small 1947-era duplexes on Baldwin Ave applied to 1,277 SF is $1,452,000 to $1,470,000. The subject's smaller building and smaller lot argue for the middle of the land band and its remodeled units and vacant delivery of one unit argue for the upper half, which produces $1,350,000 to $1,500,000. The approved plans add $75,000 to $100,000: less than the $350,000 to $450,000 they create for the buyer who builds them, because that buyer takes the construction risk, and consistent with the $304 per land SF that 4030 La Salle fetched with the same plan type on a vacant lot. The gross rent multiple of 19 to 21 times and the 3.1% cap are reported for completeness; Culver City duplexes of this size are not bought on yield.
Cross-checks. Against the active competition, 8595 Higuera St, 0.2 mile away and 40% larger, asks $1,699,000 or $291 per land SF, and 3414 Fay Ave, vacant and marketed on the transit thesis, asks $1,495,000 or $277 per land SF; the subject's suggested $1,595,000 sits between them on price and above both per land SF on the strength of the plans and the SB 79 finding. Against developers, $1,595,000 is $145,000 per SB 79 base unit and $93,800 per bonus unit, above the $85,714 asked at 3837 College and the $78,800 at 1656 Sawtelle, so a developer would have to see a better program than this residual finds to win the property, which is the point: the listing invites that bid without depending on it.
Suggested list price. $1,595,000, about 1% above the top of the opinion range. Go to market with the City's SB 79 correspondence and Density Bonus letter, the approved ADU plan set and permit status, the contractor's estimate, both units' floor plans and square footages, the current lease, and any geologic report from the ADU approval in the data room. Market to three pools at once: Culver City owner-users through the residential MLS, small investors through the LAAA database, and small-site developers through the team's land buyer list and the 3837 College inquiry log. Deliver the owner's unit vacant.
Answer to the entitlement question. Do not spend on architectural feasibility or planning entitlements before marketing. The City's formal Density Bonus determination, at about $750, is worth ordering and including. A feasibility study by a developer's own architect will be done by the developer, at the developer's cost, during escrow; paying for one now would buy an opinion the buyer will redo and would not move the price above the duplex bid. Entitlements would cost more and take longer for a premium this analysis cannot find.
This opinion is preliminary. Unit square footages, the rented unit and lease, the ADU plan set and approval, the City's SB 79 correspondence and the fault-zone status have not been reviewed in original form; closed sales are from Assessor records and MLS reports and should be confirmed through CoStar before this document is shared beyond ownership. It is not an appraisal.
The Listing Team
This opinion is presented by The LAAA Team of Marcus & Millichap's Encino office, which currently markets the 3837 College Ave development site in Culver City and eight other land and development listings across Southern California.
filip.niculete@marcusmillichap.com
CA DRE #01905352
glen.scher@marcusmillichap.com
CA DRE #01962976
The LAAA Team · Marcus & Millichap · 16830 Ventura Blvd, Suite 100, Encino, CA 91436 · www.laaa.com
Also Marketed by the LAAA Team
Active land and development-site listings, showing how development buyers are pricing entitled and unentitled land across Southern California today:
Active laaa.com land listings as of September 14, 2026, excluding properties in escrow.