16-Unit Townhome Apartment
For Sale
$10,800,000
2220 Chanticleer Ave, Santa Cruz, CA 95062
Two-story residences feature private yards, in-unit laundry, central air conditioning, and on-site parking.
Property Size18,360 SF
Days on Market27
Property Features for 2220 Chanticleer Ave
General Information
Standard status
Active
Size
18,360 SF
Property subtype
Multifamily
Amenities
16 Townhome Units
Built 1998
1.76 Acre Lot
Building Details
Building Size
18,360 SF
Units
16
Listing Agency:
Marcus & Millichap - Palo Alto
Listed By:
Carlos Azucena · License #License(s): CA: 01738155
(650) 391-1746
Source:
Marcusmillichap
Added: Aug 8
Changed: Aug 30
Last Checked: Sep 2 at 1:23PM
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 - Palo Alto
Investment Insights
Based on property information with market context.
The property comprises 16 townhome-style apartment residences on a 1.76-acre rectangular parcel at 2220 Chanticleer Ave in Santa Cruz. Built in 1998, the community includes one four-bedroom, two-bath home; three three-bedroom, two-bath homes; two two-bedroom, two-bath homes with lofts; and ten additional two-bedroom, two-bath homes.
Each residence is arranged across two levels and includes a private yard, in-unit laundry, central air conditioning and heat, and on-site parking at a 3:1 ratio. The property is located 1.5 miles from the beach, providing a coastal setting for the multifamily asset.
Each residence is arranged across two levels and includes a private yard, in-unit laundry, central air conditioning and heat, and on-site parking at a 3:1 ratio. The property is located 1.5 miles from the beach, providing a coastal setting for the multifamily asset.
Key Highlights
- 16 townhome‑style apartment residences on a 1.76‑acre rectangular lot
- Unit mix includes 1 four‑bedroom, 3 three‑bedroom, and 12 two‑bedroom homes
- All residences feature two‑story floor plans and private yards
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
$472,586
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
4.38%
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%
$9,451,720
$9.5M
Cap Rate 7%
$6,751,229
$6.8M
Cap Rate 9%
$5,250,956
$5.3M
Market Conditions
NOI Build-Up for 18,360 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
$881.3K $48.00/SF
− Vacancy
−$22.0K −$1.20/SF
EGI
$859.2K $46.80/SF
− OpEx
−$386.7K −$21.06/SF
NOI
$472.6K $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%
$9,451,720
Cap Rate 7%
$6,751,229
Cap Rate 9%
$5,250,956
Alternative Uses
Best Use
Apartment 5plus
$6.75M
$5.91M – $7.88M
NOI $472,586 @ 7.0% cap · market cap 4.38%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$10.50M
$9.19M – $12.25M
NOI $734,877 @ 7.0% cap · market cap 6.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,580
Businesses Nearby
Explore this area
Business Placement
Demographics for 95062, CA
36,268
Population
17,055
Households
2.1
Avg Household Size
43
Median Age
51%
College-Educated
93%
High-School Grad
5.1 sq mi
ZIP Area
7,111
Density / Sq Mi
$108,261
Median Household Income
$54,059
Median Earnings
$2,291
Median Rent
$1,064,600
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 - Two-story residences feature private yards, in-unit laundry, central air conditioning, and on-site parking.
Where is this apartment building located?
The property is located at 2220 Chanticleer Ave Santa Cruz, CA.
What is the asking price?
The asking price for this property is $10,800,000.
What are key features of this property?
This property features: 16 townhome‑style apartment residences on a 1.76‑acre rectangular lot; Unit mix includes 1 four‑bedroom, 3 three‑bedroom, and 12 two‑bedroom homes; All residences feature two‑story floor plans and private yards
