A Letter of Determination has been issued. Two SB9 lots are ready for final map. The buyer steps into a permitted, build-ready position with two clean development paths: a four-unit rental compound, or an eight-home SB1123 small lot subdivision built for sale.
Click between the tabs to see each play modeled end-to-end. Same land, same $1.85M entry, two very different exits. Money in and money out are shown as the first thing on each tab.
A buy-build-hold play. Acquire the land, build four rental units, lease them up, and own a $5.80M income-producing compound. The numbers below are unleveraged — what the property earns on its own.
Note: figures shown unleveraged. A 65% LTV refi at stabilization returns ~$3.77M of capital tax-free, leaving ~$1.08M in the deal earning $86K of post-debt cash flow (8% cash-on-cash on remaining equity).
Stabilized monthly numbers once both homes and both ADUs are leased. Unleveraged operating performance.
Annual: $164,736 of net operating income before any financing costs. At a 3.4% cap rate this supports a $5.80M valuation, in line with prime Westside Los Angeles SFR-style rentals.
Year 1 is final map recordation, permits, and the start of vertical construction. Stabilized rent begins late Year 1 and runs through the hold.
A merchant-build play. Acquire the land, re-entitle as an 8-lot SB1123 small lot subdivision, build eight fee-simple homes, sell each individually. Capital is fully recycled at exit.
SB1123 is a build-to-sell play. There is no recurring monthly income — the entire return is realized at sell-out. Below: gross revenue down to net developer profit over the 24-month cycle.
~30% margin on $8.93M of capital deployed over 24 months. Annualized return on capital ~14% pre-tax. Capital gains and depreciation recapture treatment depends on entity structure — assume $800K of federal and California tax on the gain, leaving net-net ~$1.88M to the investor.
SB1123 conversion adds ~6 months versus Option A's existing SB9 path. Vertical construction runs in parallel across all 8 lots once permits pull. Sell-out begins as units finish.
The current LOD is for the SB9 two-lot map. Converting to an eight-lot SB1123 subdivision means new tract-map review, new haul-route and tree-protection conditions, and likely six months of soft-cost burn before vertical work can start.
Eight identical 1,600 SF homes hitting the market simultaneously can cannibalize each other. Days-on-market in 90066 averaged 38 in 2025; selling all eight inside six months requires sub-30-day pacing.
1,600–2,000 SF homes in LA priced $400–$475/SF in 2025–2026. A 10% overrun erases ~$700K from Option B's profit and ~$300K from Option A's stabilized value.
Most Westside infill sites trade as raw zoning bets — buyers underwrite an entitlement risk premium and discount accordingly. 4457 Berryman is past that. The Letter of Determination is in hand. Two SB9 lots are mapped. The buyer skips 12–18 months of pre-development risk and walks into a permit-ready position with two distinct exit strategies already underwritten.
Both options have been underwritten with a 10% construction contingency, conservative Mar Vista comps, and Westside Los Angeles 2026 cost structures. Either play earns a defensible double-digit return on capital. The land at $1.85M is the limiting input — at that basis, both pencil. At a higher land basis, only Option B works; below it, Option A turns into an unambiguous home run.
Investor calls and site walks scheduled by appointment. LOD, ALTA survey, and design-feasibility deck available under NDA. First-position offers given priority review.