Building Details

Building Size 2,281 SF

Year Built 1926

Buildings 1

Stories 3

Listing Agency: David Lyng Real Estate b***@yahoo.com Show Phone

Listed By: William Cree · License #00815830 Show Phone

Source: Evrealestate

Added: Mar 16 Changed: Aug 31 Last Checked: Aug 31 at 3:33PM

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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 David Lyng Real Estate

Investment Insights

Based on property information with market context.

This residential income property contains 2,281 square feet and dates to 1926. Interior features include a wall furnace, dishwasher, and refrigerator, while the exterior includes an off-street feature. The property is zoned R1.

Located at 16 Mound Avenue in Mount Hermon, California, the property is near the Prospect and Forest Road cross street and is accessed from Lake Lane and Mound Avenue. The address is within Santa Cruz County.

Key Highlights

• 2,281‑square‑foot residential income property
• Built in 1926
• R1 zoning

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

$58,713

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

4.89%

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%

$1,174,260 $1.2M

Cap Rate 7%

$838,757 $838.8K

Cap Rate 9%

$652,367 $652.4K

Market Conditions

NOI Build-Up for 2,281 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

$109.5K $48.00/SF

− Vacancy

−$2.7K −$1.20/SF

EGI

$106.8K $46.80/SF

− OpEx

−$48.0K −$21.06/SF

NOI

$58.7K $25.74/SF

Area

Santa Cruz County, CA

Vacancy

2.50%

Lease Rate

$48.00 /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%

$1,174,260

Cap Rate 7%

$838,757

Cap Rate 9%

$652,367

Alternative Uses

Best Use

Apartment 5plus

$838.8K

$733.9K – $978.6K (±1% cap)

NOI $58,713 @ 7.0% cap · market cap 4.89%

Second Best

—

—

no second resolved use

Theoretical Best

Retail

$1.30M

$1.14M – $1.52M (±1% cap)

NOI $91,299 @ 7.0% cap · market cap 7.61%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Residential income properties

Suggested Use

Top Pick Dental Office Parking Lot & Garage Storage Facility Kitchen & Bath Showroom Building Supply Furniture & Home Goods

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

133

Businesses Nearby

Explore this area Business Placement

Demographics for 95041, CA

602

Population

382

Households

1.6

Avg Household Size

40

Median Age

71%

College-Educated

100%

High-School Grad

0.2 sq mi

ZIP Area

3,010

Density / Sq Mi

$161,034

Median Household Income

$71,210

Median Earnings

$1,360

Median Rent

$1,060,200

Median Home Value

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Frequently Asked Questions

What type of property is this?

Residential income property - R1-zoned property with a historic 1926 construction date and practical interior amenities.

Where is this residential income property located?

The property is located at 16 Mound Avenue Mount Hermon, CA.

What is the asking price?

The asking price for this property is $1,200,000.

What are key features of this property?

This property features: 2,281‑square‑foot residential income property; Built in 1926; R1 zoning