Renovated Triplex with ADU
New
For Sale
$1,398,000
1040 W Iowa Ave, Sunnyvale, CA 94086
Three-unit property delivered vacant, including a renovated one-bedroom residence and an owner-occupancy configuration.
Property Size2,178 SF
Lot Size0.14 Acres
Price / SF$641.87
Days on Market3
Property Features for 1040 W Iowa Ave
General Information
Standard status
Active
Size
2,178 SF
Lot size
0.14 Acres
Property subtype
Investment
Units
Unit Mix
1 x 2BR/1BA, 2 x 1BR/1BA
Multifamily Units
3
Additional Details
Public Transit
Yes
Taxes and HOA fees
Annual Taxes
$15,531
Building Details
Building Size
2,178 SF
Year Built
1959
Buildings
1
Stories
2
Units
3
Listing Agency:
Compass
(408) 373-6195
Listed By:
Ismael Benhamida · License #01722847
(408) 373-6195
Source:
Elliman
Added: Aug 20
Changed: Aug 21
Last Checked: Aug 21 at 8:29AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Compass
Investment Insights
Based on property information with market context.
This three-unit residential income property at 1040 W. Iowa Avenue includes one 2-bedroom/1-bath owner’s unit and two 1-bedroom/1-bath residences. The building contains 2,178 SqFt on a 6,211 SqFt lot and will be delivered vacant at closing. Unit #2 has been fully renovated with updated plumbing, insulation, electrical, interior walls, flooring, windows, kitchen, bathroom, and LED lighting. Copper piping, completed fumigation, and SB-721 clearance are also in place.
A consultant has determined that one conversion ADU may be added under statewide ADU policies, subject to verification with the City of Sunnyvale. The property is near the Heritage District and Downtown, with access to Vargas Elementary, Sunnyvale Middle, and Homestead High. WalkScore is 79, BikeScore is 86, and TransitScore is 51. Nearby Silicon Valley employers named in the source include Alphabet, Apple, Nvidia, Amazon, Microsoft, and Meta.
A consultant has determined that one conversion ADU may be added under statewide ADU policies, subject to verification with the City of Sunnyvale. The property is near the Heritage District and Downtown, with access to Vargas Elementary, Sunnyvale Middle, and Homestead High. WalkScore is 79, BikeScore is 86, and TransitScore is 51. Nearby Silicon Valley employers named in the source include Alphabet, Apple, Nvidia, Amazon, Microsoft, and Meta.
Key Highlights
- Three‑unit property with one 2‑Bed/1‑Bath owner’s unit and two 1‑Bed/1‑Bath units
- 2,178 SqFt building on a 6,211 SqFt lot
- Fully renovated 1‑Bed/1‑Bath unit #2 delivered vacant at close of escrow
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$49,962
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.57%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$999,240
$999.2K
Cap Rate 7%
$713,743
$713.7K
Cap Rate 9%
$555,133
$555.1K
Market Conditions
NOI Build-Up for 2,178 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$74.5K $34.20/SF
− Vacancy
−$3.1K −$1.43/SF
EGI
$71.4K $32.77/SF
− OpEx
−$21.4K −$9.83/SF
NOI
$50.0K $22.94/SF
Area
Sunnyvale, CA
Vacancy
4.18%
Lease Rate
$34.20 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$999,240
Cap Rate 7%
$713,743
Cap Rate 9%
$555,133
Alternative Uses
Best Use
Multifamily LT 5
$713.7K
$624.5K – $832.7K
NOI $49,962 @ 7.0% cap · market cap 3.57%
Second Best
Apartment 5plus
$657.7K
$575.5K – $767.3K
NOI $46,037 @ 7.0% cap · market cap 3.29%
Theoretical Best
Office A
$946.4K
$828.1K – $1.10M
NOI $66,251 @ 7.0% cap · market cap 4.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
1,196
Businesses Nearby
Explore this area
Business Placement
Demographics for 94086, CA
50,175
Population
21,264
Households
2.4
Avg Household Size
34
Median Age
70%
College-Educated
94%
High-School Grad
4.4 sq mi
ZIP Area
11,403
Density / Sq Mi
$180,217
Median Household Income
$113,343
Median Earnings
$2,923
Median Rent
$1,784,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Three-unit property delivered vacant, including a renovated one-bedroom residence and an owner-occupancy configuration.
Where is this triplex located?
The property is located at 1040 W Iowa Ave Sunnyvale, CA.
What is the asking price?
The asking price for this property is $1,398,000.
What are key features of this property?
This property features: Three‑unit property with one 2‑Bed/1‑Bath owner’s unit and two 1‑Bed/1‑Bath units; 2,178 SqFt building on a 6,211 SqFt lot; Fully renovated 1‑Bed/1‑Bath unit #2 delivered vacant at close of escrow
