Extensively Renovated Multifamily Near
For Sale
$7,995,000
508 11th Street, San Jose, CA 95112
20-unit multifamily property near San Jose State University.
Property Size16,199 SF
Price / SF$493.55
Days on Market480
Property Features for 508 11th Street
General Information
Standard status
Active
Size
16,199 SF
Building Details
Year Built
1963
Listing Agency:
MARCUS & MILLICHAP
Listed By:
CARLOS AZUCENA
Source:
Corcoran
Added: May 10, 2025
Changed: Mar 16
Last Checked: Apr 13 at 10:25AM
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 MARCUS & MILLICHAP
Investment Insights
Based on property information with market context.
Located two blocks from San Jose State University, the multifamily property at 508 S. 11th Street features 20 units. The unit mix includes 19 two-bedroom, two-bathroom apartments, each approximately 821 square feet, and one one-bedroom, one-bathroom apartment of approximately 600 square feet. Situated on a 0.29-acre lot (12,506 sq ft), the property includes amenities such as a laundry room, assigned gated parking, and enclosed garages. The unit interiors have been extensively remodeled with vinyl plank flooring, stainless steel appliances, new furnace, quartz countertops, new kitchen cabinets, new lighting and plumbing fixtures, new closet and bedroom doors, and fully remodeled bathrooms. Exterior renovations include repainting, new exterior wooden fencing, asphalt and restriping, hand rails, and a newer roof. The property offers a potential for strong cash flow.
Key Highlights
- Extensively renovated 20‑unit multifamily property, providing strong cash flow from day one.
- Located two blocks from San Jose State University in the heart of Silicon Valley.
- Turnkey asset with reduced future costs due to recent renovations.
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
$336,938
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
4.21%
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%
$6,738,760
$6.7M
Cap Rate 7%
$4,813,400
$4.8M
Cap Rate 9%
$3,743,756
$3.7M
Market Conditions
NOI Build-Up for 16,199 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
$641.5K $39.60/SF
− Vacancy
−$28.9K −$1.78/SF
EGI
$612.6K $37.82/SF
− OpEx
−$275.7K −$17.02/SF
NOI
$336.9K $20.80/SF
Area
San Jose, CA
Vacancy
4.50%
Lease Rate
$39.60 /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%
$6,738,760
Cap Rate 7%
$4,813,400
Cap Rate 9%
$3,743,756
Alternative Uses
Best Use
Apartment 5plus
$4.81M
$4.21M – $5.62M
NOI $336,938 @ 7.0% cap · market cap 4.21%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.78M
$8.56M – $11.41M
NOI $684,815 @ 7.0% cap · market cap 8.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,017
Businesses Nearby
Explore this area
Business Placement
Demographics for 95112, CA
60,754
Population
22,969
Households
2.6
Avg Household Size
33
Median Age
39%
College-Educated
82%
High-School Grad
7.3 sq mi
ZIP Area
8,322
Density / Sq Mi
$89,649
Median Household Income
$45,690
Median Earnings
$2,095
Median Rent
$956,300
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - 20-unit multifamily property near San Jose State University.
Where is this apartment building located?
The property is located at 508 11th Street San Jose, CA.
What is the asking price?
The asking price for this property is $7,995,000.
What are key features of this property?
This property features: Extensively renovated 20‑unit multifamily property, providing strong cash flow from day one.; Located two blocks from San Jose State University in the heart of Silicon Valley.; Turnkey asset with reduced future costs due to recent renovations.
