Subject Property
Marcus & Millichap is pleased to present 8540 N Kester Ave, Panorama City, CA 91402 — a 32,998 SF (0.76-acre) infill development site in the central San Fernando Valley. The rectangular parcel runs east from Kester Avenue with approximately 80 feet of street frontage and roughly 410 feet of depth, providing the configuration depth that supports SB9 lot split, SB1123 small-lot subdivision, and broader RA-1 alternate-zoning development pathways. The site is improved with a 1,029 SF, 2-bedroom / 1-bath single-family residence built in 1948, leaving the rear two-thirds of the lot effectively undeveloped. The property carries two street numbers (8540 and 8542 N Kester Ave) under a single APN, and falls within TOC Tier 3, the AB 2097 half-mile-of-major-transit zone, and a designated AB 2334 Very Low Vehicle Travel Area.
+ 8542 N Kester Ave
Panorama City, CA 91402
0.758 acres · single parcel
2 BR / 1 BA SFR
Tract TR 3018, Lot 218
RA-1 alternate · Low Residential GP
Specific Plan: None
AB 2097 · HQTC · AB 2334 VMT
Imelda Padilla
JCO applies post-lease
Property Highlights
- 0.76-acre (32,998 SF) single-parcel infill site on Kester Avenue — central San Fernando Valley.
- Two street addresses (8540 & 8542 N Kester) under a single APN — preserves SB9-style lot-split flexibility under one transaction.
- Existing 1948 SFR on the front 1/3 of the parcel provides interim rental income; rear 2/3 is largely undeveloped and ready for redevelopment.
- (T)RS-1 base zoning with RA-1 alternate per ZIMAS map — preserves multi-pathway entitlement optionality.
- TOC Tier 3, AB 2097, AB 2334 Very Low VMT, High Quality Transit Corridor — multiple density-bonus and parking-reduction pathways.
- Citywide Adaptive Reuse Program eligible; not in RSO, not in VHFHSZ, not in Hillside, not in Liquefaction Zone, outside Flood Zone.
- SB9 lot-split, SB1123 small-lot subdivision, and RA-1 multi-unit pathways — subject to feasibility analysis.
Site Detail (Per ZIMAS) — Summary
| Field | Value |
|---|---|
| Zoning / General Plan | (T)RS-1 with RA-1 alternate · Low Residential |
| TOC / Transit Layering | TOC Tier 3 · AB 2097 · AB 2334 Very Low VMT · HQTC |
| Adaptive Reuse / SEZ | Citywide ARP eligible · LA State Enterprise Zone |
| Hazards Cleared | Outside Flood Zone · Not Hillside · Not VHFHSZ · No Liquefaction · No Alquist-Priolo |
| Airport Hazard | Van Nuys Horizontal Surface Area (height limit applies) |
| RSO / Ellis | Not Subject |
| Just Cause Eviction (JCO) | Yes — post-lease / 6 mo. occupancy |
| HCA Replacement Review | Yes — demolition may trigger SB 8 / AB 1397 replacement housing |
| Existing Improvement | 1 unit · 2 BR / 1 BA · 1,029 SF · 1948 |
Download Full ZIMAS Parcel Profile (PDF) →
Recent Trade History & Assessor
| Field | Value |
|---|---|
| Last Owner Change | 5/31/2022 |
| Last Sale Amount | $1,130,000 |
| Deed Reference (City Clerk) | 1273640 |
| Assessed Land Value | $54,450 |
| Assessed Improvement Value | $366,942 |
| Tax Rate Area | 13 |
Development Considerations — DD Verification Required
- (T)RS-1 “T” tentative classification: ZIMAS shows the parcel under a tentative zoning designation with an RA-1 alternate per the generalized zoning map. Buyer to verify final entitlement pathway with City Planning before commitment.
- HCA / SB 8 replacement housing: ZIMAS flags “Housing Crisis Act and Resident Protections Ordinance Replacement Review = Yes” and “Housing Use within Prior 5 Years = Yes.” Demolition of the existing SFR may trigger replacement-unit / right-of-return obligations under SB 8 / AB 1397; confirm with Housing Department before underwriting demo.
- Just Cause for Eviction (JCO): applies after expiration of initial lease or 6 months continuous occupancy — relevant if interim rental strategy is pursued.
- Van Nuys Airport Horizontal Surface Area: height restriction zone — final building height to be verified against FAA / LAWA Part 77 surfaces during entitlement.
- State Enterprise Zone (Los Angeles SEZ): potential hiring credit benefits for qualifying construction-phase employment.
- Universal Planning Review Service Applicability: ZIMAS flags “Needs Review” — standard pre-application step.
Executive Summary
This analysis benchmarks 8540 N Kester Ave against five recent closed and pending sales of comparable San Fernando Valley residential development sites, plus the current active competing supply. The same comp set used for nearby central-SFV land trades has been verified for this submarket.
Closed & Pending Comparable Sales
Five comparable transactions from 2024 through 2026, grouped by entitlement pathway. All are older single-family residences on oversized lots acquired by LLCs for residential subdivision development.
SB1123 Pathway — Small-Lot Subdivision (up to 10 homes)
| Address | Lot SF | Price | $/Lot SF | Date | Status |
|---|---|---|---|---|---|
| 18838 Lanark St, Reseda |
27,386 |
$850,000 | $31.04 | 3/20/26 | Closed |
| 10425 Independence Ave, Chatsworth |
44,953 |
$2,340,000 | $52.05 | In Escrow | Pending |
| 17545 Parthenia St, Sherwood Forest |
102,081 |
$2,200,000 | $21.55 | 1/30/26 | Closed |
SB9 Pathway — Lot Split / Duplex Conversion
| Address | Lot SF | Price | $/Lot SF | Date | Status |
|---|---|---|---|---|---|
| 17430 Parthenia St, Sherwood Forest |
71,918 |
$2,000,000 | $27.81 | 1/21/25 | Closed |
| 17454 Parthenia St, Sherwood Forest |
45,023 |
$1,800,000 | $39.98 | 6/14/24 | Closed |
Active Competing Supply
Listings currently on-market in the broader trade area. Note these are West / North Valley listings — the closest active inventory by product type, not by ZIP.
| Address | Lot SF | Ask Price | $/Lot SF | Status | Pitch |
|---|---|---|---|---|---|
| 10810 Woodley Ave, Granada Hills | 26,197 |
$1,274,000 | $48.63 | ~190 DOM | RD3-1 / SB684 — 13-townhome feasibility study available |
| 7630 Jellico Ave, Northridge | 31,088 |
$1,550,000 | $49.86 | Active | RA zoning, MLS SR25275172 — direct size match to subject |
| Mission Hills RA-1-K corner lot |
26,027 |
Call broker | — | Active | SB1123 ministerial subdivision — up to 10 homes, 2-story |
| Northridge LARA flat near CSUN |
29,364 |
Call broker | — | Active | LARA / Triplex County Land Use — SB9 multi-family upside |
| 8855 Tyrone Ave, Panorama City | ~7,700 |
$862,000 | — | Active | SB9-approved 4-unit plan (smaller product — context only) |
Pricing Recommendation
The recommended range positions 8540 Kester at a defensible $/SF inside the SFV closed-comp size-matched cluster, captures the interim SFR rental optionality from the existing 1948 home, and prices below the stale active asks that have been sitting bidless above $48/SF.
Defensible List Range
Strategy: The 0.76-acre Kester site sits squarely between the closest size-matched closed comps — 18838 Lanark (27,386 SF / $31/SF closed) on the low end and 10425 Independence (44,953 SF / $52/SF pending) on the high end. The recommended band tracks the size-matched closed-comp cluster ($31–$40/SF) plus a modest premium for the larger lot, the dual-address single-APN configuration, and TOC Tier 3 / AB 2097 entitlement layering. The existing 1,029 SF 1948 SFR provides interim rental income to carry the site through entitlement. List discipline at this band keeps 8540 Kester priced ahead of the two stale Northridge / Granada Hills listings asking $48–$50/SF with no takers at 190+ DOM.
The LA Apartment Advisors Team
LA Apartment Advisors (LAAA) is a Marcus & Millichap investment sales team specializing in multifamily and land/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
LAAA Active Development Site Inventory
A snapshot of every development site LAAA currently has on the market — 15 active listings totaling $68.7M and 1,532 buildable units across the LA region. Listing 8540 Kester with LAAA means immediate access to the active developer-buyer pool already engaged across this portfolio.