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Janiszewski Estate Planning.

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Confidential portfolio review · 2026

Janiszewski Estate Planning.

Fifteen properties across California. A consolidated view of valuation, tax exposure, and strategic recommendations for the wholly-owned and partnership-held assets.

Properties
15
12 wholly-owned · 3 partnership
Est. portfolio value
~$15.7M
User equity exposure
Wholly-owned
~$13.8M
100% interest
Partnership share
~$1.95M
25% of $7.8M total
Pro-forma upside
+$2.5M
Sherbourne value-add
Geographic distribution

The portfolio on the map.

Five California regions. South Orange County (Irvine), West LA / Mid-City, Hollywood + Koreatown, the Inland Empire (Riverside + Yucaipa), the North County coast (Oceanside), and Big Bear (Sugarloaf). Pin colors reflect strategic posture — click any pin for the property snapshot.

Loading map…
Keep · cash flow / hold Optimize · reposition / hold Sell candidate Renovate · restore Verify pending
Executive summary

The portfolio at a glance.

A diversified California real estate portfolio anchored by stabilized cash-flow assets in the Inland Empire and high-equity, value-add opportunities across West LA. The strategy splits into three tiers: protect, optimize, and exit.

Tier 1 · Protect

Catawba Ln (Irvine) and the Yucaipa cluster form the bedrock. Catawba's owner-occupancy exclusion preserves a $1.06M tax basis vs. $2.2M reassessed — saving ~$1,140/mo. The five Yucaipa properties run at sub-21% tax-to-rent ratios.

Action: maintain occupancy status, hold for yield.

Tier 2 · Optimize

Sherbourne (15 units) is severely under-market at ~$1,333/unit vs. ~$2,700 market. Sale at today's income would leave millions on the table; a turnover-and-reposition play could nearly double the value to ~$4.86M.

Action: rent roll + expense audit (Eva), confirm seismic retrofit status.

Tier 3 · Exit candidates

Plymouth, Queen Anne, Sugarloaf, and the Hollywood/Koreatown 25% partnership stack are the natural liquidation candidates. The partnership package (24 units across three buildings) is a strong window post-partner transition.

Action: open partner conversation re: package sale of Hudson + Gramercy.

Open & flagged

Three items pending Eva: (1) Sherbourne rent roll & expenses, (2) Sugarloaf land-lease confirmation, (3) Gramercy LLC structure for reassessment treatment.

Three seismic checks pending: Sherbourne, 1012 Hudson, 1016 Hudson — all 1959–1964 LA stock.

At-a-glance valuations

Fifteen properties.

Estimated values, tax projections, and strategic posture across every asset. Values reflect current market assumptions and should be revisited as comps evolve.

Property Type Built Est. value Mo. tax Posture
5381 Catawba Ln, Irvine SFR · 3/2 1969 $2,200,000 $1,060* Keep · owner-occ
1955 S Sherbourne, LA 90034 15-unit multi 1963 $2.4M – 4.86M Optimize · value-add
1282 Queen Anne, LA 90019 4-unit multi $1,250,000 $1,302 Sell candidate
832 S Plymouth Blvd, LA 90019 SFR · 3/2 $1,400,000 $1,354 Hold · last to sell
2714 East St, Oceanside SFR · 3/2 1926 $865,000 $858 Keep · renovate
1152-1168 Villa St, Riverside 9-unit multi 1959 $2,400,000 $2,500 Keep · cash flow
12010 3rd St, Yucaipa Duplex $500,000 $521 Keep · yield
12012 3rd St, Yucaipa Multi-family 1937 $700,000 $729 Keep · yield
12026 3rd St, Yucaipa SFR / 3-unit? 1957 $593,000 $618 Verify unit count
12333 Westpark Cir, Yucaipa SFR · 3/2.5 2006 $680,000 $708 Keep · modern rental
33101 Eagle Point Dr, Yucaipa SFR · 4/3 2002 $593,000 $618 Keep · stabilized
203 Moreno Ln #207, Sugarloaf Cabin · 1/1 1970 $175,000 $208 Sell candidate
1012 N Hudson Ave, LA 90038 8-unit · 25% 1964 $625,000† $651† Hold or package sell
1016 N Hudson Ave, LA 90038 8-unit · 25% 1964 $625,000† $651† Hold or package sell
321 S Gramercy Pl, LA 90020 8-unit · 25% 1959 $700,000† $729† Sell · partner transition
Total estate exposure 15 properties ~$15,706,000

*Tax shown reflects owner-occupancy exclusion basis.    †25% proportional share of total building value and tax.

Cluster · Irvine

Catawba Ln. The owner-occupancy keeper.

One property, free and clear, with a tax-protection structure that's hard to replicate elsewhere in the portfolio.

Strong Keep · Owner-Occupied

5381 Catawba Ln

Irvine, CA 92603 · Broadmoor / Turtle Rock
Type
Single Family · 3 bed / 2 bath
Living area
1,649 sq ft
Lot
5,950 sq ft
Year built
1969
HOA
~$194/mo
Financing
Free & Clear
Assumed market value
$2,200,000
Zillow $2.28M · Redfin $2.07M · Compass $2.02M–$2.30M
Monthly tax (owner-occ)
$1,060
vs. $2,200 if reassessed as investment

The 1970s-era build means no Mello-Roos, and the 2027 owner-occupancy exclusion adds $1,044,586 on top of the $150K original assessed value — a total $1,194,586 tax-free threshold.

The math: keeping this owner-occupied saves roughly $1,140/mo in property tax versus an investment hold. If owner-occupancy isn't viable, this becomes a sale candidate to capture the high equity rather than absorb a $26,400/yr reassessed bill.

Cluster · West LA

Three assets. Three different stories.

A 15-unit value-add play, a 4-unit residential exit candidate, and a remodeled SFR being kept in reserve. Sherbourne is where the optionality lives.

Optimize · Value-Add Reposition

1955 S Sherbourne Dr

Los Angeles, CA 90034 · Class C · RSO
Type
15 units
Living area
12,510 sq ft
Configuration
41 bed / 22 bath
Year built
1963
Amenity
Pool
Financing
Free & Clear
As-is value (6% cap)
$2,400,000
$20K/mo gross · $144K NOI
Pro-forma value
$4,860,000
$2,700/unit market · $291.6K NOI

The "meat on the bone" play. Current rents at ~$1,333/unit are roughly half of market (~$2,700) for 90034 — investors pay forward 30–50% of that gap upfront.

Selling at a 6-cap on today's income would be a fire sale. Market $/door for 1960s 90034 stock is $275K–$350K, putting realistic value at $4.5M+ after seismic and turnover work.

Soft-story seismic retrofit status unknown — buyers will subtract $150K–$200K if not signed off.
Pending Eva: rent roll, current expenses. "Taxes are now $33,750/mo" flag in source notes — needs clarification (likely annual, not monthly).
Sell Candidate · Strategic Timing

1282 Queen Anne

Los Angeles, CA 90019 · Mid-City
Type
4-unit residential
Living area
3,904 sq ft total
Unit size
~1,000 sq ft each, 1BR
Gross rent
$6,895/mo
Rent roll
$1,500–$1,850/unit
Comp
$1,295,000 (1291 Queen Anne)
Target valuation
$1,250,000
4-unit residential financing eligible
Monthly tax
$1,302
~18.9% of gross rent

4-unit cap is the sweet spot: still residential financing (lower DPs), so the buyer pool is owner-users + investors. Adding a 5th unit pushes it into commercial territory and shrinks the buyer pool.

TIC conversion alternative: $400K–$500K per unit suggests $1.6M–$2.0M total upside — but legal costs and utility sub-metering required.

Best exit timing is when a unit goes vacant (owner-user can move in immediately).

Hold · Last to Sell

832 S Plymouth Blvd

Los Angeles, CA 90019 · Windsor Village HPOZ
Type
SFR · 3/2 internal · 5/5 marketed
Living area
2,023 sq ft (4,338 listed)
Lot
~8,972 sq ft
Status
Tenant in place · $4,900/mo
Condition
Remodeled, retains character
Note
Duplex permit reverted
Target list price
$1,400,000
Compass comps $1.6M–$1.8M
Monthly tax
$1,354
~27.6% of gross rent

Strategy is to list at $1.4M to draw multiple offers and let the comps push toward $1.6M+.

Owner's note: "Keep this one in the back pocket — last thing to sell. Maybe Adam wants to move into it in the next year?" If owner-occupancy materializes, this becomes a Catawba-style tax-protected hold.

Decision pending on Adam's housing plans before any list activity.

Cluster cash exposure

Combined West LA wholly-owned: ~$5.05M as-is, with Sherbourne's pro-forma adding up to +$2.46M on top.

Plymouth and Queen Anne together represent the most liquid ~$2.65M exit window if capital reallocation is needed.

Cluster · Oceanside

The coastal hold.

One property, owner-occupied by Andjej, with both a renovation upside and a tenant resolution headache.

Keep · Renovate & Hold

2714 East St

Oceanside, CA 92054 · Loma Alta
Type
SFR · 3 bed / 2 bath
Living area
1,088 sq ft
Lot
10,000 sq ft
Year built
1926
Condition
Original / unremodeled · "fair"
Status
Owner-occupant (Andjej)
Assumed market value
$865,000
Zillow $882K · Redfin $851K
Monthly tax (after exemption)
$858
$858K basis · $7K homeowner exemption

Sub-$1M assessment threshold protects this asset from California's aggressive reassessment rules. The case for keeping is straightforward — a coastal SFR under the radar, with the homeowner's exemption locked in.

The renovation budget at $250+/sq ft runs ~$272,000+ for a quality remodel. That's a real check, but it's the path to long-term equity in a high-exposure coastal market.

"Problem tenants" issue must be resolved before significant capital is deployed for renovations.
Cluster · Riverside

The stabilized earner.

One 9-unit complex, already performing near market — the income-yielding counterweight to Sherbourne's value-add risk.

Strong Keep · Cash Flow Hold

1152-1168 Villa St

Riverside, CA 92507 · East Riverside · 3.7 mi to UC Riverside
Type
9-unit Class C/B multifamily
Living area
6,214 sq ft
Lot
18,731 sq ft (corner)
Year built
1959
Amenity
Pool
Unit avg
$2,222/unit
Estimated value
$2,400,000
6% cap · $144K NOI · $266K/door
Monthly tax
$2,500
12.5% of gross rent

Unlike Sherbourne, Villa St rents are already at market — there's no hidden upside to unlock through turnover. The tax-to-income ratio (12.5%) is the most efficient in the entire portfolio.

If a liquidation is required to fund a 1031 or a value-add elsewhere, Sherbourne is the candidate, not Villa. This is the steady cash machine.

Cluster · Yucaipa

The bedrock cluster.

Five properties. ~$3.07M combined value. Tax-to-income ratios under 21% across the board. Shielded from West LA's RSO and reassessment pressures.

Keep · Yield

12010 3rd St

Yucaipa, CA 92399 · Central Yucaipa
Type
Duplex · multi-family
Living area
1,608 sq ft
Lot
10,149 sq ft
Construction
Wood-frame
Status
Off-market
Market rent
~$1,700–$1,800/unit
Estimated value
$500,000
Zillow $503K · Redfin $486K
Monthly tax
$521
~14.9% of gross rent

Standard San Bernardino tax treatment. The 2-bedroom market in Yucaipa supports this comfortably — a simple yield play with no major capital pressure.

Keep · Yield

12012 3rd St

Yucaipa, CA 92399 · Adjacent / shared parcel
Type
Multi-family apartment
Lot
~30,927 sq ft (~0.71 ac)
Year built
1937
Unit C size
2BR/1BA · ~750 sq ft
Last list rent
$1,750–$1,795/mo
Includes
Water, sewer, trash
Estimated value
$700,000
Redfin $703K · comp $539K (12054 3rd)
Monthly tax
$729
San Bernardino 1.25%
Verify · Unit Count

12026 3rd St

Yucaipa, CA 92399 · Possible multi-structure
Type
SFR (or 3-unit?)
Living area
2,512 sq ft
Lot
10,000 sq ft
Year built
1957
County code
"3 Single Family Res"
Significance
Could be 3 detached units
Target valuation
$593,000
Redfin $600,846 (Mar 2026)
Monthly tax
$618
@ 1.25% on $593K basis
Verify if this is actually 3 detached units. If so, valuation should shift to multi-family basis and rent strategy needs to maximize 2,500 sq ft of space.
Keep · Modern Rental

12333 Westpark Cir

Yucaipa, CA 92399 · Newer development
Type
SFR · 3/2.5–3
Living area
2,909 sq ft
Lot
7,487 sq ft
Year built
2006
Current rent
$2,990/mo
Mortgage
~$60K remaining
Estimated value
$680,000
Zillow $687K · Redfin $742K
Monthly tax
$708
~20.8% of $3,400 market potential

The most "hands-off" residential asset in the cluster. 2006 build = modern systems, low CapEx pressure, higher-tier tenant profile. Last listed at $3,400/mo — current $2,990 may have ~$400/mo upside on turnover.

Keep · Stabilized Family Rental

33101 Eagle Point Dr

Yucaipa, CA 92399 · Chapman Heights · 0.2 mi to Yucaipa High
Type
SFR · 4 bed / 3 bath
Living area
2,061 sq ft
Lot
4,943 sq ft
Year built
2002
HOA
$83/mo
Last list rent
$3,200–$3,300/mo (Feb 2025)
Target basis
$593,000
Redfin $592,775 · Zillow $594,500
Monthly tax
$618
~18.7–19.3% of gross rent

Family-friendly 4BR layout in a top school district = strong tenant retention. The $618 monthly tax carry is comfortably covered by ~$3,200 rent. Modern build (2002) means less management overhead than the older Yucaipa cluster.

High Fire Factor (10/10) for Yucaipa — insurance premiums likely rising in 2026. Verify renewal terms.
Cluster · Big Bear

Sugarloaf cabin. The exit candidate.

Small footprint, big risk. The math says renovate-or-sell, but renovation likely returns zero net equity gain.

Strong Sell Candidate · As-Is

203 Moreno Ln #207

Sugarloaf, CA 92386 · Big Bear mountain area
Type
Cabin · 1 bed / 1 bath
Living area
504 sq ft
Lot
5,000 sq ft
Year built
1970
Condition
Dilapidated
Insurance
Currently uninsured
As-is target value
$175,000
Redfin $191K · Realtor $194K · Comp $215K
Monthly tax
$208
@ 1.25% on $200K basis

Renovation math doesn't work. $150/sq ft × 504 sq ft = $75,600, and a full systems overhaul (roof + plumbing + electrical) likely pushes to $100K+. Total invested ($175K + $100K = $275K) approximates the upper-end finished comp ($270K–$290K) — meaning zero or negative net equity after selling costs.

The case for selling is strengthened by the uninsured status, vagrant/squatter risk, and 17% wildfire probability over 30 years.

Pending Eva: confirm whether this is a land lease arrangement. Note also references "2 other parcels" — needs clarification.
Cluster · Partnership · 25% interest

Hollywood + Koreatown stack.

Three 1960s-era 8-unit buildings. 24 units total. Same partner group across all three. The partner-transition window is open.

Hold · Or Package Sell

1012 N Hudson Ave

Los Angeles, CA 90038 · Central Hollywood · RSO
Type
8-unit · 25% interest
Living area
6,281 sq ft
Lot
6,815 sq ft
Bed/bath
10 / 9 total
Year built
1964
Rent insight
$1,750–$1,995/unit
25% share value
$625,000
Building total ~$2.5M–$2.8M · ~$315–$350/door
Monthly tax (25%)
$651
~17.6% of gross @ market

Rent roll + a vacant unit currently at ~$11,768/mo gross. Limited control as a 25% owner; major decisions require partner alignment.

Soft-story seismic retrofit status unconfirmed for 1964 LA stock. Major capital exposure if not signed off.
Hold · Or Package Sell

1016 N Hudson Ave

Los Angeles, CA 90038 · Adjacent to 1012 · RSO
Type
8-unit · 25% interest
Living area
6,281 sq ft
Lot
6,815 sq ft
Bed/bath
10 / 9 total
Year built
1964
Plumbing update
Late 2020
25% share value
$625,000
Aligned with 1012 valuation
Monthly tax (25%)
$651
~17–18% of gross

Identical physical specs to 1012. Combined with 1012, the 16-unit Hollywood adjacency creates real portfolio scale — attractive to a single buyer at a premium vs. individual sales.

Permit history references a soft-story seismic retrofit requirement — verify completion with partners.
Strong Sell · Heir Liquidation Window

321 S Gramercy Pl

Los Angeles, CA 90020 · Westminster Square / Koreatown · LAR4 zoning
Type
8-unit · 25% interest
Living area
6,972 sq ft
Lot
9,065 sq ft
Bed/bath
14 / 14 total
Year built
1959
Current rent
$13,360/mo
25% share value
$700,000
Building total ~$2.8M–$3.2M (LAR4 land premium)
Monthly tax (25%)
$729
~15–18% of gross @ market

The trigger event: last original partner deceased, ownership now distributed among the children. Estates typically prefer a clean exit over managing 1950s RSO complexity.

The bigger play: propose a 3-building portfolio sale across Gramercy + both Hudson buildings (24 units total, same partners). Scale typically commands a premium over individual asset sales.

Pending Eva: confirm LLC structure. If held in LLC, change of ownership treatment for reassessment may differ.
Strategic framework

The three-tier playbook.

A clear hierarchy of intent across the portfolio. Each property maps to one of three postures — and the framework dictates the next twelve months of capital decisions.

Tier 01 · Protect

Owner-occupancy + bedrock yield.

Catawba (Irvine) and the five Yucaipa properties. Maintain occupancy status where applicable. Monitor insurance renewal exposure (Yucaipa 9–10/10 fire factor). No capital reallocation needed — these are the floor of the portfolio.

Tier 02 · Optimize

Sherbourne reposition.

The single highest-leverage decision in the portfolio. Marketing as a turnover play (not as-is income) is the difference between $2.4M and $4.86M. Required pre-work: rent roll, expense audit, seismic retrofit confirmation. Villa St. and Eagle Point provide cash-flow stability while this plays out.

Tier 03 · Exit

Liquidate the friction.

Sugarloaf cabin (uninsured, dilapidated, no upside math). Plymouth and Queen Anne when the timing fits — Queen Anne benefits from a vacancy window for owner-user buyers. The Hollywood/K-town partnership stack as a 24-unit package sale.

Package & group sale strategy

Selling more, by selling together.

Three concrete grouping plays. Each one trades on a different premium — partner-coordinated scale, asset-class fit for institutional buyers, or geographic concentration for a regional investor. Group sales typically command 3–8% premiums over the sum of individual sales because they attract larger, more sophisticated buyer pools.

Highest priority

Hollywood + K-town · 24-unit package

3 buildings · ~$7.8M total · ~$1.95M your share

Three 1960s-era 8-unit RSO buildings under the same partnership group. The Gramercy heir transition is the catalyst — estates prefer clean exits over the headache of multi-generational RSO management. A 24-unit "scale buy" attracts professional multifamily funds rather than mom-and-pop investors, and historically commands a premium over individual asset sales.

  • 1012 N Hudson · 8 units · 1964
  • 1016 N Hudson · 8 units · 1964 (adjacent to 1012)
  • 321 S Gramercy · 8 units · 1959 · LAR4 zoning premium
Open the partner conversation now. Verify all three soft-story retrofit statuses + 321 Gramercy LLC structure before going to market.
Strategic option

West LA value-add · 19 units

2 properties · ~$3.65M as-is · ~$5M+ pro-forma

Sherbourne (15-unit) + Queen Anne (4-unit) as a combined offer to a multifamily value-add fund. Both 90034 / 90019, both with rent upside, both stabilized enough for bridge or agency financing. The package gives a fund 19 doors of West LA exposure with one closing — and lets you exit two assets that would otherwise be slow-moving individual sales.

  • 1955 S Sherbourne · 15 units · 1963 · ~$1,333/unit current vs. $2,700 market
  • 1282 Queen Anne · 4 units · ~$1,724/unit average
Model both paths. Package may discount Sherbourne's full pro-forma upside vs. a standalone reposition. Run the numbers before committing.
Long-term option

Yucaipa portfolio · 5 properties

5 properties · ~$3.07M total · ~10–13 doors

The five Yucaipa holdings span SFRs and small multifamily across the same Inland Empire submarket. Could attract a single regional investor seeking diversified yield in a low-tax, low-RSO county — particularly someone running a 1031 upleg from a coastal sale. Keep individually for now, but maintain a "ready file" so a single-buyer exit is executable on short notice.

  • 12010, 12012, 12026 3rd St · same-street cluster
  • 12333 Westpark Cir · modern (2006) SFR rental
  • 33101 Eagle Point Dr · stabilized SFR in Chapman Heights
Hold for now. Maintain rent rolls + leases + insurance docs in a shared "ready file." Verify 12026 unit count first — could lift package value.
Sale readiness

The 60-day pre-list playbook.

Selling residential and selling RSO multifamily are different documentation stacks. These are the items to have in hand before anything goes to market — incomplete files cost basis points at close and trigger price reductions during inspection. The LA RSO column is where most of the work lives.

Single-family residences

Catawba · Plymouth · East St · Westpark · Eagle Point

  • TDS · Transfer Disclosure Statement (CA-required)
  • SPQ · Seller Property Questionnaire
  • NHD · Natural Hazard Disclosure (third-party report)
  • Lead-based paint disclosure for pre-1978 stock — applies to Catawba (1969) and East St (1926)
  • Permit history from the city / county portal
  • HOA disclosure packet for Catawba ($194/mo) and Eagle Point ($83/mo)
  • Property tax bills · most recent annual + any supplemental
  • Tenant lease + estoppel for any occupied SFR (Plymouth, Westpark, Eagle Point)
  • Pre-list inspections (optional but recommended): general home, sewer scope on East St (1926), termite

Multifamily · Inland Empire

Villa St · 12010 / 12012 / 12026 3rd St

  • Rent roll · current snapshot + 12-month history
  • Lease agreements for every unit, signed
  • Tenant estoppels · executed before LOI is signed
  • T-12 operating statement · expense detail by category
  • Property tax bills · most recent + special assessments
  • Insurance binder · current premium, claim history, fire-zone rating (Yucaipa 9–10/10)
  • Capital improvements log · with receipts where possible
  • Vendor contracts (lawn, pool at Villa St, pest, trash)
  • Pool inspection for Villa St (1959 pool will draw CapEx credit requests)

Multifamily · LA RSO

Sherbourne · Queen Anne · Hudson 1012/1016 · Gramercy

  • All multifamily docs above, plus the LA-specific stack:
  • Soft-story retrofit certificate — Sherbourne (1963), Hudson 1012/1016 (1964), Gramercy (1959) all in scope
  • RSO registration certificate · current year
  • RSO compliance audit · rent registered on every unit
  • REAP status check · confirm not in Rent Escrow Account Program
  • Maximum allowable rent (MAR) calculation per unit
  • Tenant relocation fee exposure (Ellis Act, owner move-in, no-fault)
  • Tenant tenure report — long-tenured tenants discount price; recent vacancies signal turnover potential
  • Building & Safety open work order check via LADBS portal
  • Just Cause for Eviction compliance under LA Municipal Code
Capital & tax planning

How money moves between assets.

Selling generates a tax event. Selling smartly redirects capital into the next asset before the IRS gets a vote. Three concepts drive every disposition decision in the portfolio: 1031 exchanges to defer gain, the step-up basis that resets cost basis at death, and the capital-gains math that determines net proceeds.

1031 · Like-kind exchange

Defer the gain. Redeploy the equity.

45-day ID window · 180-day close window

The single most powerful sale tool. Capital gains tax is deferred (not eliminated) when proceeds roll into a like-kind investment property of equal or greater value, with the same or greater debt position.

  • Sherbourne → a stabilized 25–40 unit Class B/A elsewhere; trades fix-and-fill risk for institutional yield
  • Partnership 25% exit → a wholly-owned asset where you have 100% control, ending committee management
  • Yucaipa cluster → a single trophy multifamily; consolidates 5 management surfaces into one
  • Catawba (if not owner-occ) → a coastal SFR in San Diego or a small NNN retail asset
QI required (Qualified Intermediary). Identify replacement property within 45 days of close. Reverse 1031 (buy first, sell after) is an option for hot replacement markets.
Step-up basis · Estate strategy

The "die-and-buy" advantage.

Cost basis resets to FMV at date of death

For free-and-clear, low-basis assets, holding through death may save more than any strategic sale. The cost basis steps up to fair market value at date of death, eliminating the deferred gain entirely for heirs. Sherbourne and Catawba are the two strongest candidates — both unencumbered, both with massive embedded gain.

  • Sherbourne · likely <$300K original basis vs. $2.4M–$4.8M FMV — embedded gain of $2M+
  • Catawba · $150K assessed basis vs. ~$2.2M FMV — embedded gain of ~$2M
  • Hudson + Gramercy 25% interests · acquired decades ago, low partnership basis
CPA + estate attorney conversation: trust structure, gifting strategy, and how the step-up interacts with each property's hold horizon. Non-trivial dollars at stake.
Net proceeds math

What hits the account at close.

Federal · CA state · NIIT · depreciation recapture

Headline sale price isn't take-home. California is the highest-tax state in the country for real estate dispositions — gross-to-net erosion of 30–37% on long-term gains is realistic for high earners.

  • Federal LTCG · 20% top rate on assets held >1 year
  • NIIT · 3.8% on investment income above $250K MFJ / $200K single
  • CA state · up to 13.3% (no LTCG preference; treated as ordinary)
  • Depreciation recapture · 25% federal on accumulated depreciation for rental property
  • Selling costs · 5–6% commission + escrow/title (~1–2%) + transfer tax (LA: 0.45–6%)
Run a closing-statement projection BEFORE listing every asset. The "what's it worth" question and the "what do I keep" question are very different answers.
LA-specific friction

The Measure ULA "mansion tax" reality.

Effective April 2023, the City of LA imposes additional transfer taxes on high-value sales. Material to anything in 90020, 90034, 90019, 90038.

$5M–$10M

Additional 4% transfer tax

Applies to any LA city sale at $5M+. The Sherbourne pro-forma value ($4.86M) sits just below the threshold — material to pricing strategy. The 24-unit Hollywood + K-town package at ~$7.8M total would clear the threshold by a wide margin.

$10M+

Additional 5.5% transfer tax

Applies to any LA city sale at $10M+. None of the individual assets cross this threshold, but a combined institutional package of all West LA assets could.

Strategic implication

Sell the partnership stack as 3 separate transactions, not one

Each Hollywood/K-town building is ~$2.5M–$3.2M individually — well below the ULA threshold. Selling all three as a single combined transaction at ~$7.8M would trigger the 4% additional tax (~$312K). Closing as three same-day separate transactions to one buyer is a common workaround — confirm structure with counsel.

Open items · pending information

What needs to happen next.

Action items grouped by owner. Eva is the long pole on most of these — confirmation of structure, financials, and pending capital exposure across the partnership stack.

Eva

Sherbourne rent roll + expenses

Need current per-unit rents and operating expense breakdown to validate the $20K/mo gross and 40% expense ratio assumptions. Without this, the $2.4M as-is vs. $4.86M pro-forma valuation cannot be tightened.

Eva

Sugarloaf land-lease confirmation

Source notes flag a possible land-lease structure plus reference to "2 other parcels." Material to any sell decision — a leased-land cabin trades at a steep discount to fee-simple.

Eva

321 Gramercy LLC structure

If held in an LLC, the reassessment treatment on partner-share transfers differs materially from a direct deed structure. This affects both the heir-transition exit timing and the after-tax proceeds calculation.

Verify

Sherbourne soft-story seismic retrofit

Mandatory for 1963 wood-frame LA buildings. If unsigned, buyers will subtract $150K–$200K plus a "hassle" premium. Status check needed before any list activity.

Verify

Hudson 1012 + 1016 seismic retrofit

Both 1964-built 8-unit buildings under same partnership. Permit history references a retrofit requirement on 1016. Confirm completion with co-owners; capital call exposure if not done.

Verify

12026 3rd St Yucaipa unit count

County code "3 Single Family Res" suggests 3 detached structures rather than one 2,512 sq ft SFR. If multi-unit, valuation and rent strategy both change materially.

Decide

Adam · Plymouth occupancy plans

Owner note: "maybe Adam wants to move into it in the next year." Decision affects whether Plymouth is held (Catawba-style tax protection) or listed at $1.4M to draw multiple offers.

Initiate

Hollywood + Koreatown package conversation

Open dialogue with co-owners on a coordinated 3-building, 24-unit portfolio sale (1012 Hudson + 1016 Hudson + 321 Gramercy). The Gramercy heir transition is the natural catalyst.

Eva

Oceanside problem-tenant resolution

2714 East St has tenant complications that block any meaningful renovation deployment. Path forward (cash-for-keys, formal eviction, tenant relocation) should be scoped before committing the $272K+ remodel budget.