13-Unit Apartment
For Sale
$4,095,000
1749 Hester Avenue, San Jose, CA 95128
A 13-unit apartment property with studio through two-bedroom floor plans on a single parcel.
Property Size6,920 SF
Lot Size0.53 Acres
Price / SF$591.76
Days on Market149
Property Features for 1749 Hester Avenue
General Information
Standard status
Active
Size
6,920 SF
Lot size
0.53 Acres
Property subtype
General Commercial
Additional Details
Multifamily Units
13
Taxes and HOA fees
Annual Taxes
$56,036
Amenities
3
Shingle
1 Parking Spaces. Carport.
Building Details
Year Built
1951
Tenancy
Multi
Listing Agency:
Marcus & Millichap
(650) 391-1700
Listed By:
Andres Lopez · License #01936458
(408) 421-4703
Source:
Xome
Added: Apr 12
Changed: Sep 4
Last Checked: Sep 7 at 4:58AM
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 Marcus & Millichap
Investment Insights
Based on property information with market context.
This is a 13-unit apartment community originally constructed in 1951. The property includes studio, one-bedroom, and two-bedroom floor plans, providing a range of residential options within a single multifamily building.
The asset is located in San Jose, California. Public remarks describe the surrounding area as part of Silicon Valley, with close proximity to multiple educational institutions and major tech employers.
The property is offered for sale as a residential income asset on a parcel totaling 23,100 square feet, with approximately 6,920 square feet of gross building area as cited in the public remarks.
The asset is located in San Jose, California. Public remarks describe the surrounding area as part of Silicon Valley, with close proximity to multiple educational institutions and major tech employers.
The property is offered for sale as a residential income asset on a parcel totaling 23,100 square feet, with approximately 6,920 square feet of gross building area as cited in the public remarks.
Key Highlights
- 13‑unit apartment community on a 23,100 SF parcel in San Jose, CA
- Built in 1951 with approximately 6,920 SF gross building area
- Unit mix includes studio, 1‑bedroom, and 2‑bedroom floor plans
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
$143,935
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
3.51%
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%
$2,878,700
$2.9M
Cap Rate 7%
$2,056,214
$2.1M
Cap Rate 9%
$1,599,278
$1.6M
Market Conditions
NOI Build-Up for 6,920 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
$274.0K $39.60/SF
− Vacancy
−$12.3K −$1.78/SF
EGI
$261.7K $37.82/SF
− OpEx
−$117.8K −$17.02/SF
NOI
$143.9K $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%
$2,878,700
Cap Rate 7%
$2,056,214
Cap Rate 9%
$1,599,278
Alternative Uses
Best Use
Apartment 5plus
$2.06M
$1.80M – $2.40M
NOI $143,935 @ 7.0% cap · market cap 3.51%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.18M
$3.66M – $4.88M
NOI $292,544 @ 7.0% cap · market cap 7.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
13
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,807
Businesses Nearby
Explore this area
Business Placement
Demographics for 95128, CA
34,776
Population
15,193
Households
2.3
Avg Household Size
38
Median Age
52%
College-Educated
90%
High-School Grad
3.9 sq mi
ZIP Area
8,917
Density / Sq Mi
$122,647
Median Household Income
$71,504
Median Earnings
$2,505
Median Rent
$1,214,500
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - A 13-unit apartment property with studio through two-bedroom floor plans on a single parcel.
Where is this apartment building located?
The property is located at 1749 Hester Avenue San Jose, CA.
What is the asking price?
The asking price for this property is $4,095,000.
What are key features of this property?
This property features: 13‑unit apartment community on a 23,100 SF parcel in San Jose, CA; Built in 1951 with approximately 6,920 SF gross building area; Unit mix includes studio, 1‑bedroom, and 2‑bedroom floor plans
