Quadplex with Covered
For Sale
$900,000
215 Palm Avenue, Watsonville, CA 95076
Four-unit property with a main house, an upper unit, and a rear duplex with private outdoor areas.
Property Size1,000 SF
Days on Market196
Property Features for 215 Palm Avenue
General Information
Standard status
Active
Size
1,000 SF
Total Parking Spaces
4
Property subtype
Quadruplex
Units
Unit Mix
1 x 1BR/1BA, 2 x 1BR/1BA
Multifamily Units
4
Amenities
Water - Public, Individual Electric Meters
Building Details
Building Size
1,000 SF
Year Built
1960
Buildings
3
Listing Agency:
David Lyng Real Estate
(831) 588-5993
Listed By:
Kathleen Hall · License #01098602
(831) 588-5993
Source:
Kw
Added: Feb 17
Changed: Aug 31
Last Checked: Aug 31 at 12:36AM
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.
Located at 215 Palm Avenue in Watsonville, this four-unit property includes a main house, a one-bedroom, one-bath unit above a two-car carport, and a rear duplex with two additional one-bedroom, one-bath homes. The main house includes a fenced yard and large covered patio, while the duplex units have small fenced yards. One of the rear units has been updated.
Parking includes the carport beneath the upper unit, an additional two-car carport near the rear building, on-site parking, and limited street parking. The property is served by public water with individual electric meters and falls within the Pajaro Valley Unified School District. Assessor records identify the original construction year as 1960, subject to buyer verification.
Parking includes the carport beneath the upper unit, an additional two-car carport near the rear building, on-site parking, and limited street parking. The property is served by public water with individual electric meters and falls within the Pajaro Valley Unified School District. Assessor records identify the original construction year as 1960, subject to buyer verification.
Key Highlights
- Four‑unit configuration with a main house, upper one‑bedroom unit, and rear duplex
- Rear duplex contains 2 one‑bedroom, 1‑bath homes with small fenced yards
- Large covered patio and fenced yard at the main house
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
$27,880
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
3.10%
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%
$557,600
$557.6K
Cap Rate 7%
$398,286
$398.3K
Cap Rate 9%
$309,778
$309.8K
Market Conditions
NOI Build-Up for 1,000 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
$40.8K $40.80/SF
− Vacancy
−$971 −$0.97/SF
EGI
$39.8K $39.83/SF
− OpEx
−$11.9K −$11.95/SF
NOI
$27.9K $27.88/SF
Area
Santa Cruz County, CA
Vacancy
2.38%
Lease Rate
$40.80 /SF/Yr
Expense Ratio
30.00%
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%
$557,600
Cap Rate 7%
$398,286
Cap Rate 9%
$309,778
Alternative Uses
Best Use
Multifamily LT 5
$398.3K
$348.5K – $464.7K
NOI $27,880 @ 7.0% cap · market cap 3.10%
Second Best
Apartment 5plus
$367.7K
$321.8K – $429.0K
NOI $25,740 @ 7.0% cap · market cap 2.86%
Theoretical Best
Retail
$571.8K
$500.3K – $667.1K
NOI $40,026 @ 7.0% cap · market cap 4.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
1,693
Businesses Nearby
Explore this area
Business Placement
Demographics for 95076, CA
84,433
Population
26,488
Households
3.2
Avg Household Size
35
Median Age
19%
College-Educated
72%
High-School Grad
135.1 sq mi
ZIP Area
625
Density / Sq Mi
$86,685
Median Household Income
$36,077
Median Earnings
$1,851
Median Rent
$767,200
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?
Quadplex - Four-unit property with a main house, an upper unit, and a rear duplex with private outdoor areas.
Where is this quadplex located?
The property is located at 215 Palm Avenue Watsonville, CA.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: Four‑unit configuration with a main house, upper one‑bedroom unit, and rear duplex; Rear duplex contains 2 one‑bedroom, 1‑bath homes with small fenced yards; Large covered patio and fenced yard at the main house
