13-Unit Townhome Apartment
New
For Sale
$2,995,000
126 S E St, Santa Rosa, CA 95404
All residences have two bedrooms, one-and-a-half baths, and individual water heaters.
Property Size11,375 SF
Days on Market2
Property Features for 126 S E St
General Information
Standard status
Active
Size
11,375 SF
Total Parking Spaces
13
Property subtype
Multifamily
Occupancy
97%
Site & Location
Public Transit
Yes
Utilities to Site
Yes
Units
Unit Mix
13 x 2BR/1.5BA
Multifamily Units
13
Additional Details
Cap Rate
5.62%
Amenities
common laundry facilities
Immediate Rent Growth Potential: Opportunity to implement allowable annual rent increases and progressively move existing rents closer to market.
Value-Add Renovation Opportunity: Modernize interiors upon turnover to enhance marketability, rental income, and long-term asset value.
Desirable Townhome Unit Mix: Thirteen spacious two-bedroom, one-and-a-half-bath townhomes offering functional layouts attractive to a broad tenant base.
Significant Recent Capital Improvements: Electrical panels and underground water, sewer, and gas lines have all been recently replaced.
Individual Utility Metering: Tenants maintain and pay their own PG&E account, including for their own hot water.
Near Downtown Santa Rosa: Convenient access to dining, shopping, employment, transportation, and the amenities of Sonoma County's largest city.
Building Details
Building Size
11,375 SF
Units
13
Listing Agency:
Marcus & Millichap - San Francisco
Listed By:
John Garrett · License #License(s): CA: 01421403
(415) 625-2131
Source:
Marcusmillichap
Added: Oct 1
Last Checked: Oct 1 at 2:31PM
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 - San Francisco
Investment Insights
Based on property information with market context.
This 13-unit apartment property is composed entirely of townhomes, each with two bedrooms and one-and-a-half baths. Covered carport parking provides 13 spaces, and shared laundry equipment accepts app-based payments. Each residence has an individual water heater and gas wall heat.
Recent work includes a new main electrical panel, new subpanels in all 13 units, and replacement of underground water, sewer, and gas lines. Residents pay their own PG&E accounts; ownership covers water, sewer, and garbage. The property is a few blocks from Downtown Santa Rosa, near restaurants, shopping, entertainment, employment, and public transportation.
Recent work includes a new main electrical panel, new subpanels in all 13 units, and replacement of underground water, sewer, and gas lines. Residents pay their own PG&E accounts; ownership covers water, sewer, and garbage. The property is a few blocks from Downtown Santa Rosa, near restaurants, shopping, entertainment, employment, and public transportation.
Key Highlights
- 13 townhome units, each with 2 bedrooms and 1.5 baths
- 13 covered carport spaces
- Main electrical panel and electrical subpanels replaced in all 13 units
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
$198,690
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
6.63%
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%
$3,973,800
$4.0M
Cap Rate 7%
$2,838,429
$2.8M
Cap Rate 9%
$2,207,667
$2.2M
Market Conditions
NOI Build-Up for 11,375 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
$379.5K $33.36/SF
− Vacancy
−$18.2K −$1.60/SF
EGI
$361.3K $31.76/SF
− OpEx
−$162.6K −$14.29/SF
NOI
$198.7K $17.47/SF
Area
Santa Rosa, CA
Vacancy
4.80%
Lease Rate
$33.36 /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%
$3,973,800
Cap Rate 7%
$2,838,429
Cap Rate 9%
$2,207,667
Alternative Uses
Best Use
Apartment 5plus
$2.84M
$2.48M – $3.31M
NOI $198,690 @ 7.0% cap · market cap 6.63%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$3.16M
$2.77M – $3.69M
NOI $221,222 @ 7.0% cap · market cap 7.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
13
Residential units
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
4,509
Businesses Nearby
Explore this area
Business Placement
Demographics for 95404, CA
38,034
Population
16,850
Households
2.3
Avg Household Size
43
Median Age
45%
College-Educated
90%
High-School Grad
75.4 sq mi
ZIP Area
504
Density / Sq Mi
$102,802
Median Household Income
$57,388
Median Earnings
$1,890
Median Rent
$865,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Apartment building - All residences have two bedrooms, one-and-a-half baths, and individual water heaters.
Where is this apartment building located?
The property is located at 126 S E St Santa Rosa, CA.
What is the asking price?
The asking price for this property is $2,995,000.
What are key features of this property?
This property features: 13 townhome units, each with 2 bedrooms and 1.5 baths; 13 covered carport spaces; Main electrical panel and electrical subpanels replaced in all 13 units
