Three-Unit Residential Income
For Sale
$1,395,000
523 Branch St, San Luis Obispo, CA 93401
Three separate residences on a street-to-street lot, offering flexible living and rental layout with off-street parking.
Property Size2,816 SF
Lot Size0.21 Acres
Days on Market91
Property Features for 523 Branch St
General Information
Standard status
Active
Size
2,816 SF
Lot size
0.21 Acres
Property subtype
Investment
Additional Details
Multifamily Units
3
Building Details
Building Size
2,816 SF
Year Built
1910
Stories
2
Units
3
Listing Agency:
Sereno
(805) 441-7744
Listed By:
Lindsey Harn · License #01868098
Source:
Elliman
Added: Jun 3
Changed: Aug 8
Last Checked: Aug 31 at 3:55PM
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 Sereno
Investment Insights
Based on property information with market context.
This three-unit residential income property features a street-to-street configuration on a spacious 8,980± square foot lot. The front home at 523 Branch Street offers 3 bedrooms and 1 bathroom, with a covered front porch, mature shade trees, and a spacious front yard. Inside, an open-concept living area supports a practical day-to-day flow, and the kitchen includes in-unit laundry.
Behind the main residence, the property includes two additional units at 520 South A & B, both built in 1989. Each unit has an open-concept lower level with a pass-through kitchen window to the living room, and direct access from the dining area to a private yard space. Upstairs, each unit offers a generously sized bedroom, a full bathroom, and a versatile loft area that can function as a home office or additional living space. Off-street parking is available in front of the units.
Located in the heart of San Luis Obispo’s Railroad District, the property is positioned moments from Meadow Park, Hawthorne Park, and Downtown San Luis Obispo. The three separate residences provide a straightforward fit for investors, owner-occupants, or households looking to live in one home while renting the others, supported by private yards and off-street parking.
Behind the main residence, the property includes two additional units at 520 South A & B, both built in 1989. Each unit has an open-concept lower level with a pass-through kitchen window to the living room, and direct access from the dining area to a private yard space. Upstairs, each unit offers a generously sized bedroom, a full bathroom, and a versatile loft area that can function as a home office or additional living space. Off-street parking is available in front of the units.
Located in the heart of San Luis Obispo’s Railroad District, the property is positioned moments from Meadow Park, Hawthorne Park, and Downtown San Luis Obispo. The three separate residences provide a straightforward fit for investors, owner-occupants, or households looking to live in one home while renting the others, supported by private yards and off-street parking.
Key Highlights
- Three separate residences on an 8,980+ SF street‑to‑street lot in San Luis Obispo’s Railroad District
- Front residence (523 Branch St) offers 3 bedrooms, 1 bathroom, plus a covered front porch and in‑unit laundry
- Two additional units (520 South A & B) built in 1989, each with an open‑concept lower level and pass‑through kitchen window
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
$58,883
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
4.22%
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%
$1,177,660
$1.2M
Cap Rate 7%
$841,186
$841.2K
Cap Rate 9%
$654,256
$654.3K
Market Conditions
NOI Build-Up for 2,816 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
$86.2K $30.60/SF
− Vacancy
−$2.1K −$0.73/SF
EGI
$84.1K $29.87/SF
− OpEx
−$25.2K −$8.96/SF
NOI
$58.9K $20.91/SF
Area
San Luis Obispo County, CA
Vacancy
2.38%
Lease Rate
$30.60 /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%
$1,177,660
Cap Rate 7%
$841,186
Cap Rate 9%
$654,256
Alternative Uses
Best Use
Multifamily LT 5
$841.2K
$736.0K – $981.4K
NOI $58,883 @ 7.0% cap · market cap 4.22%
Second Best
Apartment 5plus
$776.6K
$679.5K – $906.1K
NOI $54,363 @ 7.0% cap · market cap 3.90%
Theoretical Best
Healthcare Medical
$1.11M
$969.1K – $1.29M
NOI $77,524 @ 7.0% cap · market cap 5.56%
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
1,850
Businesses Nearby
Explore this area
Business Placement
Demographics for 93401, CA
29,877
Population
14,363
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
64.2 sq mi
ZIP Area
465
Density / Sq Mi
$95,386
Median Household Income
$47,898
Median Earnings
$1,859
Median Rent
$943,500
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 separate residences on a street-to-street lot, offering flexible living and rental layout with off-street parking.
Where is this triplex located?
The property is located at 523 Branch St San Luis Obispo, CA.
What is the asking price?
The asking price for this property is $1,395,000.
What are key features of this property?
This property features: Three separate residences on an 8,980+ SF street‑to‑street lot in San Luis Obispo’s Railroad District; Front residence (523 Branch St) offers 3 bedrooms, 1 bathroom, plus a covered front porch and in‑unit laundry; Two additional units (520 South A & B) built in 1989, each with an open‑concept lower level and pass‑through kitchen window
