20-Unit Apartment
For Sale
$3,500,000
3893 Pioneer Trail, South Lake Tahoe, CA 96150
Two-parcel multifamily property with code-compliant improvements and remodeled units near major South Lake Tahoe destinations.
Property Size8,872 SF
Price / SF$394.50
Days on Market525
Property Features for 3893 Pioneer Trail
General Information
Standard status
Active
Size
8,872 SF
Property subtype
Multi Family
Additional Details
Multifamily Units
20
Building Details
Year Built
1961
Listing Agency:
Mountain Luxury Properties
(530) 208-7081
Listed By:
Angela M. Roberts · License #01950736
(530) 208-7081
Source:
Exitrealty
Added: Feb 27, 2025
Changed: Jul 31
Last Checked: Aug 6 at 4:43AM
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 Mountain Luxury Properties
Investment Insights
Based on property information with market context.
This 20-unit apartment complex comprises two separate parcels at 3893 and 3897 Pioneer Trail in South Lake Tahoe. The combined property contains 8,872 square feet and was built in 1961. The property has been brought up to code, and 50% of the units have been remodeled with PVC flooring, new kitchens, new bathrooms, and paint.
The complex is a short walk from the Heavenly Ski Resort Gondolas, Heavenly Village, and area casinos. Units have been rented to local workers, ski-lease tenants, and summer renters, as well as residents seeking a more walkable lifestyle. Exterior improvements are slated to include new windows, exterior paint, and driveway repaving as weather permits.
The complex is a short walk from the Heavenly Ski Resort Gondolas, Heavenly Village, and area casinos. Units have been rented to local workers, ski-lease tenants, and summer renters, as well as residents seeking a more walkable lifestyle. Exterior improvements are slated to include new windows, exterior paint, and driveway repaving as weather permits.
Key Highlights
- 20‑unit apartment complex spanning two separate parcels
- Combined 8,872 square feet at 3893 and 3897 Pioneer Trail
- Built in 1961 and brought completely up to code
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
$131,960
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
3.77%
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%
$2,639,200
$2.6M
Cap Rate 7%
$1,885,143
$1.9M
Cap Rate 9%
$1,466,222
$1.5M
Market Conditions
NOI Build-Up for 8,872 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
$255.5K $28.80/SF
− Vacancy
−$15.6K −$1.76/SF
EGI
$239.9K $27.04/SF
− OpEx
−$108.0K −$12.17/SF
NOI
$132.0K $14.87/SF
Area
El Dorado County, CA
Vacancy
6.10%
Lease Rate
$28.80 /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%
$2,639,200
Cap Rate 7%
$1,885,143
Cap Rate 9%
$1,466,222
Alternative Uses
Best Use
Apartment 5plus
$1.89M
$1.65M – $2.20M
NOI $131,960 @ 7.0% cap · market cap 3.77%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.17M
$2.78M – $3.70M
NOI $222,033 @ 7.0% cap · market cap 6.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
20
Residential units
Location Intelligence
Trade Area within ½ mile
27
Businesses Nearby
Explore this area
Business Placement
Demographics for 96150, CA
29,518
Population
23,472
Households
1.3
Avg Household Size
40
Median Age
39%
College-Educated
92%
High-School Grad
163.2 sq mi
ZIP Area
181
Density / Sq Mi
$83,738
Median Household Income
$45,582
Median Earnings
$1,497
Median Rent
$649,100
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?
Apartment building - Two-parcel multifamily property with code-compliant improvements and remodeled units near major South Lake Tahoe destinations.
Where is this apartment building located?
The property is located at 3893 Pioneer Trail South Lake Tahoe, CA.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 20‑unit apartment complex spanning two separate parcels; Combined 8,872 square feet at 3893 and 3897 Pioneer Trail; Built in 1961 and brought completely up to code
