Residential Income
New
For Sale
$1,600,000
5601 Hoffman Ct, San Jose, CA 95118
Residential income property dating to 1962 with bikeable access and some public transportation service.
Property Size3,134 SF
Days on Market5
Property Features for 5601 Hoffman Ct
General Information
Standard status
Active
Size
3,134 SF
Property subtype
Investment
Building Details
Building Size
3,134 SF
Year Built
1962
Stories
2
Units
4
Listing Agency:
(408) 360-7066
Listed By:
Janette Landaverde
(408) 360-7066
Source:
Elliman
Added: Aug 26
Changed: Aug 29
Last Checked: Aug 29 at 11:55AM
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 Janette Landaverde
Investment Insights
Based on property information with market context.
Located at 5601 Hoffman Ct in San Jose, this residential income property was built in 1962. The surrounding area records a Bike Score of 68, indicating bikeable conditions, while the Walk Score is 44 and reflects a car-dependent setting. A Transit Score of 40 indicates some available public transportation service.
Key Highlights
- Built in 1962
- Bike Score of 68
- Walk Score of 44
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
$65,187
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
4.07%
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%
$1,303,740
$1.3M
Cap Rate 7%
$931,243
$931.2K
Cap Rate 9%
$724,300
$724.3K
Market Conditions
NOI Build-Up for 3,134 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
$124.1K $39.60/SF
− Vacancy
−$5.6K −$1.78/SF
EGI
$118.5K $37.82/SF
− OpEx
−$53.3K −$17.02/SF
NOI
$65.2K $20.80/SF
Area
San Jose, CA
Vacancy
4.50%
Lease Rate
$39.60 /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%
$1,303,740
Cap Rate 7%
$931,243
Cap Rate 9%
$724,300
Alternative Uses
Best Use
Apartment 5plus
$931.2K
$814.8K – $1.09M
NOI $65,187 @ 7.0% cap · market cap 4.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.89M
$1.66M – $2.21M
NOI $132,490 @ 7.0% cap · market cap 8.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
907
Businesses Nearby
Explore this area
Business Placement
Demographics for 95118, CA
32,764
Population
11,941
Households
2.7
Avg Household Size
40
Median Age
53%
College-Educated
94%
High-School Grad
4.1 sq mi
ZIP Area
7,991
Density / Sq Mi
$148,438
Median Household Income
$80,817
Median Earnings
$2,488
Median Rent
$1,377,000
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Residential income property - Residential income property dating to 1962 with bikeable access and some public transportation service.
Where is this residential income property located?
The property is located at 5601 Hoffman Ct San Jose, CA.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Built in 1962; Bike Score of 68; Walk Score of 44
