Updated August 27, 2026
Sherman Oaks is inside the City of Los Angeles, so the whole city stack applies.
Charged on gross sale price, not gain, above a City of Los Angeles threshold that is indexed and moves.
Sherman Oaks per-door figures are the highest of any Valley submarket in this record — the median is $237,708 per unit. That means Sherman Oaks buildings cross the threshold at a lower unit count than the same-sized building in Van Nuys, North Hollywood or Reseda.
Two consequences. First, model it on the gross number before you set a price. Second, model it early if a 1031 exchange is in play — ULA is charged whether or not you defer the gain, so a seller who has planned the exchange carefully and never modeled ULA gets an unpleasant surprise at closing.
Much of the Sherman Oaks inventory north of Ventura is the postwar walk-up over open ground-floor parking that the LA ordinance targets. Completed, you pay the construction cost. Left undone, the buyer discounts by reliably more, because they are pricing the expense plus the uncertainty plus the schedule risk.
Reconcile the rent roll against the LAHD registration record and confirm registration is current before listing. A discrepancy found in due diligence costs more than the same discrepancy found in advance.
Negotiated per engagement, paid at closing.
Step-down, yield maintenance and defeasance produce very different numbers on the same balance. Establish which yours carries before you list.
Escrow fees, title policy, county and city transfer tax, prorations.
Federal capital gains, depreciation recapture, California income tax. Model the 1031 question alongside ULA rather than after it.
Which side of Ventura Boulevard your building sits on. South of it the stock is newer and better located; north of it, older and more ordinary. Both are Sherman Oaks, both carry the same regulatory stack, and they are not the same product.
Every line item above is the same on either side. The price is not — what a Sherman Oaks door has cost.
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