Building Details

Year Built 1910

Listing Agency: h***@roomsantacruz.com Show Phone

Listed By: Room Real Estate

Source: Xome

Added: May 29, 2023 Changed: Aug 30 Last Checked: Aug 31 at 3:03PM

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Investment Insights

Based on property information with market context.

This 5,797-square-foot apartment property dates to 1910 and contains six residential units across a three-story primary residence and five additional dwellings. The unit mix includes a studio/pool house, an apartment with a garage, two two-bedroom homes, and a one-bedroom ADU beneath the main residence. The primary home includes a sunroom, updated kitchen with granite countertops, vintage Occidental stove, living room fireplace, and four bedrooms. Large windows provide river views throughout the property.

The property is located at 175 Shadowbrook Road in Ben Lomond, next to Highland Park. Highway 9 provides access toward Felton, Santa Cruz, and Saratoga. On-site parking includes eight spaces with a carport, and the property is identified with R-1-1AC zoning.

Key Highlights

• 6 residential units across a three‑story primary residence and 5 additional dwellings
• 5,797 SF apartment property built in 1910
• Unit mix includes a studio/pool house, garage apartment, two 2‑bedroom homes, and a 1‑bedroom ADU

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

$149,215

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

6.63%

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%

$2,984,300 $3.0M

Cap Rate 7%

$2,131,643 $2.1M

Cap Rate 9%

$1,657,944 $1.7M

Market Conditions

NOI Build-Up for 5,797 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

$278.3K $48.00/SF

− Vacancy

−$7.0K −$1.20/SF

EGI

$271.3K $46.80/SF

− OpEx

−$122.1K −$21.06/SF

NOI

$149.2K $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%

$2,984,300

Cap Rate 7%

$2,131,643

Cap Rate 9%

$1,657,944

Alternative Uses

Best Use

Apartment 5plus

$2.13M

$1.87M – $2.49M (±1% cap)

NOI $149,215 @ 7.0% cap · market cap 6.63%

Second Best

—

—

no second resolved use

Theoretical Best

Retail

$3.31M

$2.90M – $3.87M (±1% cap)

NOI $232,031 @ 7.0% cap · market cap 10.31%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Apartment buildings

Suggested Use

Top Pick Law Firm Real Estate Agency Restaurant Spa & Massage Center Parking Lot & Garage Building Supply

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

6

Residential units

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

257

Businesses Nearby

Explore this area Business Placement

Demographics for 95005, CA

6,551

Population

2,892

Households

2.3

Avg Household Size

46

Median Age

46%

College-Educated

97%

High-School Grad

11.8 sq mi

ZIP Area

555

Density / Sq Mi

$107,857

Median Household Income

$70,932

Median Earnings

$2,358

Median Rent

$959,100

Median Home Value

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Apartment building - Varied residential accommodations include a studio, two-bedroom homes, an apartment with garage, and an ADU.

Where is this apartment building located?

The property is located at 175 Shadowbrook Road Ben Lomond, CA.

What is the asking price?

The asking price for this property is $2,250,000.

What are key features of this property?

This property features: 6 residential units across a three‑story primary residence and 5 additional dwellings; 5,797 SF apartment property built in 1910; Unit mix includes a studio/pool house, garage apartment, two 2‑bedroom homes, and a 1‑bedroom ADU