Willow Glen Townhouse
For Sale
$8,988,000
2157 Yosemite Pkwy, Merced, CA 95340
Well-maintained apartment complex with recent renovations in a strong market.
Property Size52,704 SF
Price / SF$170.54
Days on Market472
Property Features for 2157 Yosemite Pkwy
General Information
Standard status
Active
Size
52,704 SF
Building Details
Year Built
1989
Listing Agency:
MARCUS & MILLICHAP
Listed By:
JON HOLMQUIST
Source:
Corcoran
Added: Jun 9, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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.
The Willow Glen Townhouse Apartments, constructed around 1989, are available for sale. This complex presents an opportunity to acquire a well-maintained building in a robust employment market characterized by low vacancy rates. Recent enhancements include interior renovations in twenty-four of the 61 units, featuring luxury vinyl plank flooring, granite kitchen countertops, and new appliances. Additional renovations over the last decade encompass new pitched composite roofs on all buildings around 2018, new fascia boards, new paint, new concrete office access, updated landscaping, a resurfaced pool, recent tree trimming, and numerous unit interior upgrades. The property comprises seven separate buildings, including six residential buildings and a dedicated on-site rental office and laundry facility. The unit configuration consists of sixty-one two-bedroom, one-and-a-half-bath two-level townhomes, each approximately 864 square feet. Each townhome is equipped with roof-mounted forced air heating and air conditioning, gas stoves, frost-free refrigerators, and one-piece drop-in shower and tub enclosures with sliding glass doors.
Key Highlights
- Excellent condition in a strong employment market with low market‑wide vacancy.
- 24 of 61 units feature thorough interior renovations** including luxury vinyl plank flooring, granite kitchen tops, and new appliances.
- New pitched composite roofs on all buildings (circa 2018).
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
$641,081
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
7.13%
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%
$12,821,620
$12.8M
Cap Rate 7%
$9,158,300
$9.2M
Cap Rate 9%
$7,123,122
$7.1M
Market Conditions
NOI Build-Up for 52,704 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
$1.23M $23.28/SF
− Vacancy
−$61.3K −$1.16/SF
EGI
$1.17M $22.12/SF
− OpEx
−$524.5K −$9.95/SF
NOI
$641.1K $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%
$12,821,620
Cap Rate 7%
$9,158,300
Cap Rate 9%
$7,123,122
Alternative Uses
Best Use
Apartment 5plus
$9.16M
$8.01M – $10.68M
NOI $641,081 @ 7.0% cap · market cap 7.13%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$11.63M
$10.17M – $13.57M
NOI $813,961 @ 7.0% cap · market cap 9.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
86
Businesses Nearby
Explore this area
Business Placement
Demographics for 95340, CA
38,606
Population
13,553
Households
2.8
Avg Household Size
33
Median Age
26%
College-Educated
86%
High-School Grad
52.0 sq mi
ZIP Area
742
Density / Sq Mi
$65,141
Median Household Income
$35,165
Median Earnings
$1,204
Median Rent
$383,200
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Apartment building - Well-maintained apartment complex with recent renovations in a strong market.
Where is this apartment building located?
The property is located at 2157 Yosemite Pkwy Merced, CA.
What is the asking price?
The asking price for this property is $8,988,000.
What are key features of this property?
This property features: Excellent condition in a strong employment market with low market‑wide vacancy.; 24 of 61 units feature thorough interior renovations** including luxury vinyl plank flooring, granite kitchen tops, and new appliances.; New pitched composite roofs on all buildings (circa 2018).
