San Martin Gated Community
For Sale
$2,487,000
1935 Hayes Lane, San Martin, CA 95046
Prime parcel with building, utilities, and potential home site.
Property Size4,500 SF
Price / SF$552.67
Days on Market1224
Property Features for 1935 Hayes Lane
General Information
Standard status
Active
Size
4,500 SF
Property subtype
Land or Vacant Lot
Amenities
Agricultural
Paved
Sloped Up
Varies
Views
Listing Agency:
STARRITT REALTORS
(408) 842-8251
Listed By:
SUSAN JACOBSEN · License #00572040
Source:
Corcoran
Added: Apr 6, 2023
Changed: Aug 8
Last Checked: Aug 8 at 6:12AM
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 STARRITT REALTORS
Investment Insights
Based on property information with market context.
Located in the gated community of Hayes Valley in San Martin, this parcel offers a private setting. It features a septic system, water, electricity, telephone, and a propane tank. The property includes a 50x90 premium Butler building with a paved driveway extending around one side. The building is equipped with 200 amp electricity, two electrical service panels, two main doors, and four overhead doors. Specifically, there are 10x18 doors, a 10x10 door on the south side, and a 12x12 plus 10x12 drive-through door. The building has insulated walls and ceiling, a stucco finish on the exterior, a Reznor propane ceiling heater, and a standing seam hip roof. The parcel also presents a building site suitable for a dream home. This property is ideal for those seeking a shop in their yard, offering the opportunity to live, work, and play from home. There is a road maintenance agreement in place. The property is part of the Williamson Bill, which may result in lower property taxes when the property has agricultural use.
Key Highlights
- Premium 50x90 Butler building with insulated walls and ceiling, stucco exterior, and standing seam hip roof.
- Private, prime location in a gated community in Hayes Valley, San Martin.
- Septic system, water, electricity (200 amp with 2 service panels), telephone, and propane tank already installed.
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
$75,110
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
3.02%
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%
$1,502,200
$1.5M
Cap Rate 7%
$1,073,000
$1.1M
Cap Rate 9%
$834,556
$834.6K
Market Conditions
NOI Build-Up for 4,500 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
$116.1K $25.80/SF
− Vacancy
−$8.8K −$1.96/SF
EGI
$107.3K $23.84/SF
− OpEx
−$32.2K −$7.15/SF
NOI
$75.1K $16.69/SF
Area
Santa Clara County, CA
Vacancy
7.58%
Lease Rate
$25.80 /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%
$1,502,200
Cap Rate 7%
$1,073,000
Cap Rate 9%
$834,556
Alternative Uses
Best Use
Industrial
$1.07M
$938.9K – $1.25M
NOI $75,110 @ 7.0% cap · market cap 3.02%
Second Best
Flex RnD
$996.4K
$871.8K – $1.16M
NOI $69,745 @ 7.0% cap · market cap 2.80%
Theoretical Best
Office A
$2.72M
$2.38M – $3.17M
NOI $190,170 @ 7.0% cap · market cap 7.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
14
Businesses Nearby
Explore this area
Business Placement
Demographics for 95046, CA
6,361
Population
2,048
Households
3.1
Avg Household Size
43
Median Age
36%
College-Educated
90%
High-School Grad
18.8 sq mi
ZIP Area
338
Density / Sq Mi
$157,458
Median Household Income
$43,832
Median Earnings
$2,312
Median Rent
$1,396,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential land & home lot - Prime parcel with building, utilities, and potential home site.
Where is this residential land & home lot located?
The property is located at 1935 Hayes Lane San Martin, CA.
What is the asking price?
The asking price for this property is $2,487,000.
What are key features of this property?
This property features: Premium 50x90 Butler building with insulated walls and ceiling, stucco exterior, and standing seam hip roof.; Private, prime location in a gated community in Hayes Valley, San Martin.; Septic system, water, electricity (200 amp with 2 service panels), telephone, and propane tank already installed.
