22-Unit Apartment
New
For Sale
$8,500,000
1450-1480 Hess RD, Redwood City, CA 94061
Two-parcel property includes on-site laundry, parking, storage, and individually metered electric and gas.
Property Size18,557 SF
Days on Market5
Property Features for 1450-1480 Hess RD
General Information
Standard status
Active
Size
18,557 SF
Property subtype
FiveOrMoreUnits
Building Details
Building Size
18,557 SF
Year Built
1957
Listing Agency:
Compass
Listed By:
Nate Gustavson · License #01898316
(415) 786-9410
Source:
Vanguardproperties
Added: Sep 2
Changed: Sep 4
Last Checked: Sep 6 at 9:08AM
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 Compass
Investment Insights
Based on property information with market context.
This 22-unit apartment property was built in 1957 and spans approximately 18,557 square feet across two parcels totaling 22,241 square feet of lot area. The unit mix comprises seventeen 1-bedroom/1-bath apartments and five 2-bedroom/1-bath apartments. Property features include four enclosed garages, seventeen carports, tenant storage, two laundry rooms with owned coin-operated machines, and an owner workshop/storage room. Electric and gas service are individually metered, with Siemens circuit-breaker sub-panels and service equipment panels.
The property is located at 1450-1480 Hess Road in Redwood City’s Palm Park neighborhood, near El Camino Real, shopping, dining, downtown Redwood City, and major Peninsula employment centers. Caltrain, Highway 101, and I-280 are also accessible from the property. SB-721 documentation, a contractor report, and a pest report have been completed and are on file.
The property is located at 1450-1480 Hess Road in Redwood City’s Palm Park neighborhood, near El Camino Real, shopping, dining, downtown Redwood City, and major Peninsula employment centers. Caltrain, Highway 101, and I-280 are also accessible from the property. SB-721 documentation, a contractor report, and a pest report have been completed and are on file.
Key Highlights
- 22‑unit apartment property across approximately 18,557 square feet
- Unit mix includes seventeen 1‑bedroom/1‑bath units and five 2‑bedroom/1‑bath units
- Two parcels with a combined 22,241‑square‑foot lot area
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
$505,067
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
5.94%
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%
$10,101,340
$10.1M
Cap Rate 7%
$7,215,243
$7.2M
Cap Rate 9%
$5,611,856
$5.6M
Market Conditions
NOI Build-Up for 18,557 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
$968.7K $52.20/SF
− Vacancy
−$50.4K −$2.71/SF
EGI
$918.3K $49.49/SF
− OpEx
−$413.2K −$22.27/SF
NOI
$505.1K $27.22/SF
Area
San Mateo County, CA
Vacancy
5.20%
Lease Rate
$52.20 /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%
$10,101,340
Cap Rate 7%
$7,215,243
Cap Rate 9%
$5,611,856
Alternative Uses
Best Use
Apartment 5plus
$7.22M
$6.31M – $8.42M
NOI $505,067 @ 7.0% cap · market cap 5.94%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$14.74M
$12.90M – $17.20M
NOI $1,031,803 @ 7.0% cap · market cap 12.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,170
Businesses Nearby
Explore this area
Business Placement
Demographics for 94061, CA
36,704
Population
14,122
Households
2.6
Avg Household Size
38
Median Age
51%
College-Educated
87%
High-School Grad
3.9 sq mi
ZIP Area
9,411
Density / Sq Mi
$141,599
Median Household Income
$66,388
Median Earnings
$2,818
Median Rent
$1,938,300
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 property includes on-site laundry, parking, storage, and individually metered electric and gas.
Where is this apartment building located?
The property is located at 1450-1480 Hess RD Redwood City, CA.
What is the asking price?
The asking price for this property is $8,500,000.
What are key features of this property?
This property features: 22‑unit apartment property across approximately 18,557 square feet; Unit mix includes seventeen 1‑bedroom/1‑bath units and five 2‑bedroom/1‑bath units; Two parcels with a combined 22,241‑square‑foot lot area
