Spacious Fourplex in Morgan
For Sale
$2,400,000
105 Sanchez Dr, Morgan Hill, CA 95037
Fourplex in Morgan Hill, perfect for generating income.
Property Size3,172 SF
Lot Size0.31 Acres
Price / SF$756.62
Days on Market153
Property Features for 105 Sanchez Dr
General Information
Standard status
Active
Size
3,172 SF
Lot size
0.31 Acres
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$13,204
Building Details
Building Size
3,172 SF
Year Built
1900
Stories
1
Units
4
Listing Agency:
Morris Investment Associates, Inc.
(408) 887-8400
Listed By:
Eli Gonzalez · License #01212955
(408) 887-8400
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 3:00PM
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 Morris Investment Associates, Inc.
Investment Insights
Based on property information with market context.
This fourplex is located in Morgan Hill. The property includes 3,172 square feet of living space and is situated on a 13,700-square-foot lot. The main house features three bedrooms and two bathrooms. The main home boasts hardwood and tile flooring. Central air conditioning and a fireplace are included. Additional window/wall units are available for climate control.
Key Highlights
- Fourplex property ideal for income generation.
- Spacious 3,172 sq ft living space on a large 13,700 sq ft lot.
- Main house features three bedrooms and two bathrooms.
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
$70,711
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
2.95%
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%
$1,414,220
$1.4M
Cap Rate 7%
$1,010,157
$1.0M
Cap Rate 9%
$785,678
$785.7K
Market Conditions
NOI Build-Up for 3,172 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
$106.6K $33.60/SF
− Vacancy
−$5.6K −$1.75/SF
EGI
$101.0K $31.85/SF
− OpEx
−$30.3K −$9.55/SF
NOI
$70.7K $22.29/SF
Area
Santa Clara County, CA
Vacancy
5.22%
Lease Rate
$33.60 /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%
$1,414,220
Cap Rate 7%
$1,010,157
Cap Rate 9%
$785,678
Alternative Uses
Best Use
Multifamily LT 5
$1.01M
$883.9K – $1.18M
NOI $70,711 @ 7.0% cap · market cap 2.95%
Second Best
Apartment 5plus
$861.3K
$753.7K – $1.00M
NOI $60,293 @ 7.0% cap · market cap 2.51%
Theoretical Best
Office A
$1.91M
$1.68M – $2.23M
NOI $134,049 @ 7.0% cap · market cap 5.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
465
Businesses Nearby
Explore this area
Business Placement
Demographics for 95037, CA
53,126
Population
17,185
Households
3.1
Avg Household Size
41
Median Age
44%
College-Educated
90%
High-School Grad
120.1 sq mi
ZIP Area
442
Density / Sq Mi
$158,256
Median Household Income
$71,130
Median Earnings
$2,242
Median Rent
$1,152,400
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?
Quadplex - Fourplex in Morgan Hill, perfect for generating income.
Where is this quadplex located?
The property is located at 105 Sanchez Dr Morgan Hill, CA.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Fourplex property ideal for income generation.; Spacious 3,172 sq ft living space on a large 13,700 sq ft lot.; Main house features **three bedrooms and two bathrooms.**
