22-Unit Apartment
New
For Sale
$8,500,000
14501480 Hess Road, Redwood City, CA 94061
Multifamily property with one- and two-bedroom layouts, garage and carport parking, laundry facilities, and tenant storage.
Property Size18,557 SF
Price / SF$458.05
Days on Market6
Property Features for 14501480 Hess Road
General Information
Standard status
Active
Size
18,557 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$92,999
Amenities
Composition, Shingle
Carport.
Building Details
Year Built
1957
Listing Agency:
(415) 874-5000
Listed By:
Compass
Source:
Xome
Added: Aug 30
Changed: Sep 4
Last Checked: Sep 4 at 1:54AM
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 community, built in 1957, spans approximately 18,557 square feet across two parcels and includes a mix of seventeen 1-bedroom/1-bath residences and five 2-bedroom/1-bath residences. The property includes four enclosed garages, seventeen carports, tenant storage, and a large owner workshop/storage room. Two on-site laundry rooms are equipped with owned coin-operated machines. Electric and gas service are individually metered, with Siemens circuit-breaker sub-panels and service equipment panels. SB-721 documentation, a contractor report, and a pest report have been completed.
The property is 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 provide regional transportation access. The site occupies a 22,241-square-foot lot, and the unit mix supports both one-bedroom and two-bedroom occupancy options.
The property is 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 provide regional transportation access. The site occupies a 22,241-square-foot lot, and the unit mix supports both one-bedroom and two-bedroom occupancy options.
Key Highlights
- 22‑unit apartment community on a 22,241‑square‑foot lot
- Approximately 18,557 square feet of building area across two parcels
- Unit mix includes seventeen 1‑bedroom/1‑bath and five 2‑bedroom/1‑bath 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
$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
1,362
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 - Multifamily property with one- and two-bedroom layouts, garage and carport parking, laundry facilities, and tenant storage.
Where is this apartment building located?
The property is located at 14501480 Hess Road 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 community on a 22,241‑square‑foot lot; Approximately 18,557 square feet of building area across two parcels; Unit mix includes seventeen 1‑bedroom/1‑bath and five 2‑bedroom/1‑bath units
