High Image Office Adjacent to Sherman Oaks - 5900 Sepulveda
High-Image Office Asset Adjacent to Sherman Oaks | 6.97% CAP | 77,896 SF
Marketing description
Kidder Mathews is pleased to exclusively present the opportunity to acquire 5900 Sepulveda, a ±77,896 SF high-image professional office building prominently positioned along Sepulveda Boulevard, directly adjacent to the highly sought-after Sherman Oaks submarket in the central San Fernando Valley.
The property is currently 91.7% leased to 32 tenants, providing stable in-place income supported by a diversified mix of professional, medical, legal, and service-oriented users. No tenant accounts for more than 10% of the building, and the average suite size of approximately 1,900 square feet promotes strong leasing velocity and tenant retention.
Originally constructed in 1981 and renovated in 2000, the five-story steel and concrete structure features a recently upgraded lobby, on-site cafe, EV charging stations, and a combination of surface and subterranean parking at a 3.0 per 1,000 square foot ratio, along with abundant non-metered street parking. The building benefits from over 200 feet of frontage along Sepulveda Boulevard, with more than 46,000 vehicles passing daily, offering exceptional visibility and identity within the submarket.
Positioned immediately adjacent to Sherman Oaks, one of the most desirable office submarkets in the San Fernando Valley, the property provides tenants with a high-quality alternative at a meaningful discount to comparable assets, supporting long-term occupancy and continued leasing demand. The central SFV has also seen growing migration of media and entertainment tenants into nearby Sherman Oaks, Encino, and North Hollywood, driven by proximity to major studios in Burbank and Hollywood.
In-place rents are well below competing properties, presenting a clear opportunity to increase revenue through mark-to-market as leases roll. With 6,438 square feet currently available, investors benefit from near-term leasing upside while maintaining strong day-one cash flow.
Offered at $15,950,000 ($205/SF), the property presents a compelling opportunity to acquire a well-located, high-occupancy office asset at a basis significantly below replacement cost, with durable income and meaningful upside potential as the market continues to recover.
Investment highlights
- 91.7% LEASED WITH STABLE CASH FLOW & IMMEDIATE UPSIDE: Well-leased office building providing durable in-place income with a diversified tenant base across professional, medical, legal, and service-oriented uses. Strong day-one cash flow is complemented by 6,438 SF of near-term leasing opportunity, parking income upside, and meaningful mark-to-market potential as in-place rents roll to higher market rates.
- NEAR SHERMAN OAKS, OFFERING PREMIUM POSITIONING AT A DISCOUNT: Directly adjacent to Sherman Oaks, one of the most desirable office submarkets in the San Fernando Valley. The property offers tenants a high-quality alternative at a meaningful discount to comparable Sherman Oaks assets, where office rents command a 41% premium, supporting long-term occupancy and demand.
- COMPELLING BASIS WELL BELOW REPLACEMENT COST: Offered at $205/SF, representing a substantial discount to the cost of developing a comparable five-story professional office building in today's market. Provides strong downside protection and long-term value in one of the Valley's most established commercial corridors.
- SIGNIFICANT MARK-TO-MARKET RENT UPSIDE: In-place rents sit well below competing properties in the submarket. Near-term lease rollover across a short weighted average remaining lease term of approximately 1.5 years provides the opportunity to materially increase rental income as leases are renewed or re-tenanted at market rates.
- EFFICIENT SMALL-SUITE LAYOUT DRIVES LEASING VELOCITY: Average suite size of approximately 1,900 SF caters to the most active segment of tenant demand in the submarket, resulting in faster lease-up, lower tenant improvement costs, and stronger below-the-line cash flow.
- PROVEN TENANT RETENTION AND LONG-TERM STABILITY: Many tenants have operated at the property for years and continue to renew. The healthcare and professional services tenant base serves the surrounding community and is less susceptible to remote work disruption.
- TRANSIT-ORIENTED LOCATION WITH EXCELLENT REGIONAL ACCESS: One block from the Metro G Line (Orange Line) Sepulveda Station and immediate access to the I-405 and US-101 freeways, providing connectivity across the San Fernando Valley and greater Los Angeles. The central SFV location serves a population base of over 4.25 million residents.
- FLEXIBLE ZONING WITH EXPANDED USE POTENTIAL: Transit proximity may qualify the property under AB 2097 to accommodate medical and other specialty uses that would ordinarily require higher parking ratios, subject to buyer verification.
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