Multitenant Manufacturing
For Sale
Contact for pricing
1320 E San Fernando St, San Jose, CA 95116
Light Industrial-zoned facility with two tenants and an established cabinetry business opportunity.
Property Size7,300 SF
Price / SF$380.41
Days on Market11
Property Features for 1320 E San Fernando St
General Information
Standard status
Active
Size
7,300 SF
Property subtype
Industrial, Business for Sale
Zoning
Light Industrial (LI)
Building Details
Year Built
1950
Tenancy
Multi
Listing Agency:
GD Commercial Real Estate Inc.
Listed By:
Jeff Vo · License #1441068
(408) 955-9900
Source:
Crexi
Added: Aug 24
Changed: Sep 3
Last Checked: Sep 3 at 2:03AM
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 GD Commercial Real Estate Inc.
Investment Insights
Based on property information with market context.
The property is a 7,300-square-foot manufacturing building constructed in 1950 and designated Light Industrial (LI). Its multitenant configuration includes two tenants, with an established cabinetry business also available as part of the acquisition opportunity.
Located at 1320 E. San Fernando St in San Jose, California, the property offers an owner-user configuration that combines occupancy potential with existing tenant rental income. The building’s industrial classification and established tenant arrangement provide a defined operating framework for continued manufacturing use.
Located at 1320 E. San Fernando St in San Jose, California, the property offers an owner-user configuration that combines occupancy potential with existing tenant rental income. The building’s industrial classification and established tenant arrangement provide a defined operating framework for continued manufacturing use.
Key Highlights
- 7,300‑square‑foot manufacturing building
- Light Industrial (LI) zoning
- Multitenant configuration with two tenants
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
$147,954
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
5.33%
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%
$2,959,080
$3.0M
Cap Rate 7%
$2,113,629
$2.1M
Cap Rate 9%
$1,643,933
$1.6M
Market Conditions
NOI Build-Up for 7,300 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
$188.3K $25.80/SF
− Vacancy
−$14.3K −$1.96/SF
EGI
$174.1K $23.84/SF
− OpEx
−$26.1K −$3.58/SF
NOI
$148.0K $20.27/SF
Area
San Jose, CA
Vacancy
7.58%
Lease Rate
$25.80 /SF/Yr
Expense Ratio
15.00%
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%
$2,959,080
Cap Rate 7%
$2,113,629
Cap Rate 9%
$1,643,933
Alternative Uses
Best Use
Warehouse
$2.11M
$1.85M – $2.47M
NOI $147,954 @ 7.0% cap · market cap 5.33%
Second Best
Industrial
$1.74M
$1.52M – $2.03M
NOI $121,845 @ 7.0% cap · market cap 4.39%
Theoretical Best
Office A
$4.41M
$3.86M – $5.14M
NOI $308,608 @ 7.0% cap · market cap 11.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,047
Businesses Nearby
Explore this area
Business Placement
Demographics for 95116, CA
51,222
Population
13,987
Households
3.7
Avg Household Size
35
Median Age
21%
College-Educated
71%
High-School Grad
3.6 sq mi
ZIP Area
14,228
Density / Sq Mi
$83,428
Median Household Income
$41,992
Median Earnings
$2,049
Median Rent
$842,700
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Manufacturing property - Light Industrial-zoned facility with two tenants and an established cabinetry business opportunity.
Where is this manufacturing property located?
The property is located at 1320 E San Fernando St San Jose, CA.
What is the asking price?
The asking price for this property is $2,777,000.
What are key features of this property?
This property features: 7,300‑square‑foot manufacturing building; Light Industrial (LI) zoning; Multitenant configuration with two tenants
