Santa Clara Multifamily Investment
For Sale
$3,480,000
1896 Market Street, Santa Clara, CA 95050
9-unit apartment building in Santa Clara with strong rental upside.
Property Size6,175 SF
Price / SF$563.56
Days on Market213
Property Features for 1896 Market Street
General Information
Standard status
Active
Size
6,175 SF
Property subtype
Commercial
Building Details
Year Built
1957
Listing Agency:
COLDWELL BANKER REALTY
(408) 252-1133
Listed By:
VICKY LI · License #01896360
Source:
Corcoran
Added: Feb 1
Changed: Jul 6
Last Checked: Sep 1 at 7:51PM
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 COLDWELL BANKER REALTY
Investment Insights
Based on property information with market context.
This 9-unit multifamily property is located in Santa Clara and features a unit mix of one 2-bed/1.5-bath, two 2-bed/1-bath, five 1-bed/1-bath, and one studio. The units offer walk-in closets, large bedrooms, hallway storage, dining areas, and living rooms. The 2-bed/1.5-bath unit is approximately 925 square feet, and the 2-bed/1-bath units are around 875 square feet. The property has no rent control and offers rental upside. The grounds are well-maintained and include a large shared backyard, a spacious side yard with benches and BBQ areas, and tenant parking. The property is located near Saratoga and Bellomy, with proximity to major employers, universities, shopping, dining, and transit. This property is suitable for student or corporate housing.
Key Highlights
- 9‑unit investment property in Santa Clara with a desirable unit mix.
- No rent control and strong rental upside potential.
- Ideally located near major employers, universities, shopping, dining, and transit.
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
$116,784
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
3.36%
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%
$2,335,680
$2.3M
Cap Rate 7%
$1,668,343
$1.7M
Cap Rate 9%
$1,297,600
$1.3M
Market Conditions
NOI Build-Up for 6,175 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
$223.0K $36.12/SF
− Vacancy
−$10.7K −$1.73/SF
EGI
$212.3K $34.39/SF
− OpEx
−$95.6K −$15.47/SF
NOI
$116.8K $18.91/SF
Area
Santa Clara, CA
Vacancy
4.80%
Lease Rate
$36.12 /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%
$2,335,680
Cap Rate 7%
$1,668,343
Cap Rate 9%
$1,297,600
Alternative Uses
Best Use
Apartment 5plus
$1.67M
$1.46M – $1.95M
NOI $116,784 @ 7.0% cap · market cap 3.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.73M
$3.26M – $4.35M
NOI $260,956 @ 7.0% cap · market cap 7.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
814
Businesses Nearby
Explore this area
Business Placement
Demographics for 95050, CA
39,031
Population
16,674
Households
2.3
Avg Household Size
35
Median Age
54%
College-Educated
92%
High-School Grad
5.5 sq mi
ZIP Area
7,097
Density / Sq Mi
$130,051
Median Household Income
$73,578
Median Earnings
$2,522
Median Rent
$1,420,500
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 - 9-unit apartment building in Santa Clara with strong rental upside.
Where is this apartment building located?
The property is located at 1896 Market Street Santa Clara, CA.
What is the asking price?
The asking price for this property is $3,480,000.
What are key features of this property?
This property features: 9‑unit investment property in Santa Clara with a desirable unit mix.; No rent control and strong rental upside potential.; Ideally located near major employers, universities, shopping, dining, and transit.
