Duplex With Attached
For Sale
$1,485,000
Pending
1576 Heritage Lane, Santa Cruz, CA 95062
Two-unit property offers flexible occupancy, updated interiors, private patios, and convenient off-street parking.
Property Size2,312 SF
Days on Market164
Property Features for 1576 Heritage Lane
General Information
Standard status
Pending
Size
2,312 SF
Total Parking Spaces
4
Property subtype
Multi Family
Units
Unit Mix
1 x 3BR/2.5BA, 1 x 1BR/1BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$19,800
Building Details
Year Built
2006
Buildings
1
Listing Agency:
Compass
(831) 689-9784
Listed By:
Michael Lavigne · License #01782392
(831) 689-9784
Source:
Exitrealty
Added: Mar 22
Changed: Aug 29
Last Checked: Aug 29 at 10:05PM
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.
Built in 2006, this 2,312-square-foot duplex includes a 1,751-square-foot primary unit with three bedrooms and two-and-a-half baths, plus an attached 561-square-foot ADU with one bedroom, one bath, and its own entrance. The property can support separate residential occupancy or use as a primary home with an attached accessory dwelling unit.
Recent improvements include stainless steel appliances, SPC flooring, carpeting, LED lighting, repainted interiors, refreshed landscaping, and updated private patios. Parking includes a single-car garage and three off-street spaces.
The property is at 1576 Heritage Lane in Santa Cruz, near Capitola Village and Pleasure Point. Trader Joe’s, New Leaf, Whole Foods, local restaurants, and coffee shops are nearby, while area walking routes include views over Monterey Bay.
Recent improvements include stainless steel appliances, SPC flooring, carpeting, LED lighting, repainted interiors, refreshed landscaping, and updated private patios. Parking includes a single-car garage and three off-street spaces.
The property is at 1576 Heritage Lane in Santa Cruz, near Capitola Village and Pleasure Point. Trader Joe’s, New Leaf, Whole Foods, local restaurants, and coffee shops are nearby, while area walking routes include views over Monterey Bay.
Key Highlights
- 2,312 SF duplex with a 1,751 SF main unit and 561 SF attached ADU
- Main residence includes 3 bedrooms and 2.5 baths; ADU has 1 bedroom and 1 bath
- ADU features a private entrance for separate access
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
$64,459
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
4.34%
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%
$1,289,180
$1.3M
Cap Rate 7%
$920,843
$920.8K
Cap Rate 9%
$716,211
$716.2K
Market Conditions
NOI Build-Up for 2,312 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
$94.3K $40.80/SF
− Vacancy
−$2.2K −$0.97/SF
EGI
$92.1K $39.83/SF
− OpEx
−$27.6K −$11.95/SF
NOI
$64.5K $27.88/SF
Area
Santa Cruz County, CA
Vacancy
2.38%
Lease Rate
$40.80 /SF/Yr
Expense Ratio
30.00%
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%
$1,289,180
Cap Rate 7%
$920,843
Cap Rate 9%
$716,211
Alternative Uses
Best Use
Multifamily LT 5
$920.8K
$805.7K – $1.07M
NOI $64,459 @ 7.0% cap · market cap 4.34%
Second Best
Apartment 5plus
$850.2K
$743.9K – $991.9K
NOI $59,511 @ 7.0% cap · market cap 4.01%
Theoretical Best
Retail
$1.32M
$1.16M – $1.54M
NOI $92,540 @ 7.0% cap · market cap 6.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
1,594
Businesses Nearby
Explore this area
Business Placement
Demographics for 95062, CA
36,268
Population
17,055
Households
2.1
Avg Household Size
43
Median Age
51%
College-Educated
93%
High-School Grad
5.1 sq mi
ZIP Area
7,111
Density / Sq Mi
$108,261
Median Household Income
$54,059
Median Earnings
$2,291
Median Rent
$1,064,600
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?
Duplex - Two-unit property offers flexible occupancy, updated interiors, private patios, and convenient off-street parking.
Where is this duplex located?
The property is located at 1576 Heritage Lane Santa Cruz, CA.
What is the asking price?
The asking price for this property is $1,485,000.
What are key features of this property?
This property features: 2,312 SF duplex with a 1,751 SF main unit and 561 SF attached ADU; Main residence includes 3 bedrooms and 2.5 baths; ADU has 1 bedroom and 1 bath; ADU features a private entrance for separate access
