Building Details

Year Built 1968

Buildings 2

Listing Agency: PMZ Commercial Real Estate j***@pmz.com Show Phone

Listed By: Jordan R. Amarant · License #01911219

Source: Sacramentoareahouses

Added: Jul 2 Changed: Aug 29 Last Checked: Aug 25 at 7:36AM

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Investment Insights

Based on property information with market context.

This 7-unit multifamily property includes a two-story fourplex and a one-story triplex positioned on separate legal parcels. The unit mix comprises four 2-bedroom, 1.5-bath residences and three 2-bedroom, 1-bath residences, each with a private backyard. Central heating and air serve every unit. Additional improvements include covered parking, six on-site storage units, maintained landscaping, and quality roofs. The buildings were constructed in 1968 and occupy a combined 18,748 SF across the two parcels.

Located at 20041 Carol Dr in Hilmar, the property is near local schools, retail, and dining. The separate-building configuration and varied two-bedroom layouts provide a straightforward multifamily operating profile, while the on-site storage and covered parking add functional amenities for residents.

Key Highlights

• 7 units across a two‑story fourplex and one‑story triplex
• Four 2‑bedroom/1.5‑bath units and three 2‑bedroom/1‑bath units
• Combined 18,748 SF across two legal parcels

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

$78,384

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

6.56%

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%

$1,567,680 $1.6M

Cap Rate 7%

$1,119,771 $1.1M

Cap Rate 9%

$870,933 $870.9K

Market Conditions

NOI Build-Up for 6,444 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

$150.0K $23.28/SF

− Vacancy

−$7.5K −$1.16/SF

EGI

$142.5K $22.12/SF

− OpEx

−$64.1K −$9.95/SF

NOI

$78.4K $12.16/SF

Area

Merced County, CA

Vacancy

5.00%

Lease Rate

$23.28 /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%

$1,567,680

Cap Rate 7%

$1,119,771

Cap Rate 9%

$870,933

Alternative Uses

Best Use

Apartment 5plus

$1.12M

$979.8K – $1.31M (±1% cap)

NOI $78,384 @ 7.0% cap · market cap 6.56%

Second Best

—

—

no second resolved use

Theoretical Best

Healthcare Medical

$1.42M

$1.24M – $1.66M (±1% cap)

NOI $99,521 @ 7.0% cap · market cap 8.33%

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 Kitchen & Bath Showroom Plumbing Service HVAC Service (Bike/Boat/Book/etc) Store

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

7

Residential units

Location Intelligence

Trade Area within ½ mile

272

Businesses Nearby

Explore this area Business Placement

Demographics for 95324, CA

7,148

Population

2,663

Households

2.7

Avg Household Size

38

Median Age

9%

College-Educated

75%

High-School Grad

40.2 sq mi

ZIP Area

178

Density / Sq Mi

$72,309

Median Household Income

$55,498

Median Earnings

$1,555

Median Rent

$441,500

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 - Two buildings on separate parcels offer two-bedroom units with private backyards and central heating and air.

Where is this apartment building located?

The property is located at 20041 Carol Dr Hilmar, CA.

What is the asking price?

The asking price for this property is $1,195,000.

What are key features of this property?

This property features: 7 units across a two‑story fourplex and one‑story triplex; Four 2‑bedroom/1.5‑bath units and three 2‑bedroom/1‑bath units; Combined 18,748 SF across two legal parcels