Five-Unit Apartment
For Sale
$1,999,999
114 Franklin Street, Santa Cruz, CA 95060
Fully occupied property combines a main residence with four detached accessory units.
Property Size2,685 SF
Price / SF$744.88
Days on Market206
Property Features for 114 Franklin Street
General Information
Standard status
Active
Size
2,685 SF
Property subtype
5+ Units / Five or More Units
Occupancy
100%
Units
Unit Mix
1 x 2BR main home, 2 x studio (including Jr. ADU), 2 x 2BR/1BA ADU
Multifamily Units
5
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$25,000
Amenities
Assigned Spaces
No, No, 2685, None, None
Building Details
Year Built
1980
Buildings
3
Listing Agency:
Raeid Farhat Real Estate Inc
(831) 228-9559
Listed By:
Shawki Farhat · License #02225210
(831) 228-9559
Source:
Compass
Added: Feb 7
Changed: Aug 30
Last Checked: Aug 31 at 10:27PM
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 Raeid Farhat Real Estate Inc
Investment Insights
Based on property information with market context.
This 2,685-square-foot apartment property, built in 1980, contains five occupied units arranged across a main home and detached structures. The unit mix includes one two-bedroom main residence, two studio units, including a Jr. ADU, and two additional two-bedroom, one-bath ADUs.
The property is located at 114 Franklin Street in Santa Cruz, near Highway 1, the Santa Cruz Beach Boardwalk, UCSC, downtown Santa Cruz, and area restaurants. Current occupancy across all five units provides an in-place rental operation, while the property’s reported cap rate is above 7%.
The property is located at 114 Franklin Street in Santa Cruz, near Highway 1, the Santa Cruz Beach Boardwalk, UCSC, downtown Santa Cruz, and area restaurants. Current occupancy across all five units provides an in-place rental operation, while the property’s reported cap rate is above 7%.
Key Highlights
- Five‑unit property with all units currently occupied
- 2,685 square feet; built in 1980
- Unit mix includes a 2‑bedroom main home and two detached studios
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
$69,112
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
3.46%
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%
$1,382,240
$1.4M
Cap Rate 7%
$987,314
$987.3K
Cap Rate 9%
$767,911
$767.9K
Market Conditions
NOI Build-Up for 2,685 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
$128.9K $48.00/SF
− Vacancy
−$3.2K −$1.20/SF
EGI
$125.7K $46.80/SF
− OpEx
−$56.5K −$21.06/SF
NOI
$69.1K $25.74/SF
Area
Santa Cruz County, CA
Vacancy
2.50%
Lease Rate
$48.00 /SF/Yr
Expense Ratio
45.00%
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%
$1,382,240
Cap Rate 7%
$987,314
Cap Rate 9%
$767,911
Alternative Uses
Best Use
Apartment 5plus
$987.3K
$863.9K – $1.15M
NOI $69,112 @ 7.0% cap · market cap 3.46%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$1.54M
$1.34M – $1.79M
NOI $107,470 @ 7.0% cap · market cap 5.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
100%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,242
Businesses Nearby
Explore this area
Business Placement
Demographics for 95060, CA
47,931
Population
20,181
Households
2.4
Avg Household Size
39
Median Age
55%
College-Educated
94%
High-School Grad
54.5 sq mi
ZIP Area
879
Density / Sq Mi
$106,040
Median Household Income
$46,231
Median Earnings
$2,356
Median Rent
$1,189,300
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?
Apartment building - Fully occupied property combines a main residence with four detached accessory units.
Where is this apartment building located?
The property is located at 114 Franklin Street Santa Cruz, CA.
What is the asking price?
The asking price for this property is $1,999,999.
What are key features of this property?
This property features: Five‑unit property with all units currently occupied; 2,685 square feet; built in 1980; Unit mix includes a 2‑bedroom main home and two detached studios
