Six-Unit Apartment
For Sale
$2,388,000
2351 Sutter Ave, Santa Clara, CA 95050
Six-unit apartment property built in 1962 with a mix of one- and two-bedroom apartments.
Property Size4,280 SF
Lot Size0.18 Acres
Price / SF$557.94
Days on Market49
Property Features for 2351 Sutter Ave
General Information
Standard status
Active
Size
4,280 SF
Lot size
0.18 Acres
Property subtype
Multifamily
Occupancy
83%
Additional Details
Multifamily Units
6
Amenities
Prime Santa Clara Location — near Pruneridge Golf Course, benefiting from Santa Clara County's historically tight apartment market and limited new supply.
6-Unit Apartment Community — 3x 1BR/1BA and 3x 2BR/1BA units offering flexible tenant appeal.
Meaningful Rent Upside of 14% — current average rents of $2,272/unit trail market.
Strong Employment Proximity — minutes from Apple Park, NVIDIA, and Kaiser Permanente.
Excellent Regional Access — immediate proximity to San Tomas Expressway, I-280, and Highway 85.
Close Proximity to Santana Row, Westfield Valley Fair, and Santa Clara University.
Building Details
Year Built
1962
Units
6
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Palo Alto
Listed By:
Jimmy Castellanos · License #License(s): CA: 02024152
(650) 391-1777
Source:
Marcusmillichap
Added: Jul 18
Changed: Sep 4
Last Checked: Aug 21 at 7:45AM
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.
This six-unit apartment building was constructed in 1962 and contains approximately 4,280 square feet of rentable space. The unit mix includes three one-bedroom, one-bathroom units and three two-bedroom, one-bathroom units.
The property is located at 2351 Sutter Avenue in Santa Clara, California, and sits on a 7,787-square-foot parcel.
For tenants and investors seeking a residential income asset with a balanced one- and two-bedroom configuration, this community provides an in-place, multi-unit rental setup.
The property is located at 2351 Sutter Avenue in Santa Clara, California, and sits on a 7,787-square-foot parcel.
For tenants and investors seeking a residential income asset with a balanced one- and two-bedroom configuration, this community provides an in-place, multi-unit rental setup.
Key Highlights
- 6‑unit apartment community built in 1962 in Santa Clara
- Approx. 4,280 rentable SF on a 7,787 SF parcel
- Unit mix: three 1 bed/1 bath units and three 2 bed/1 bath units
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
$80,945
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
3.39%
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%
$1,618,900
$1.6M
Cap Rate 7%
$1,156,357
$1.2M
Cap Rate 9%
$899,389
$899.4K
Market Conditions
NOI Build-Up for 4,280 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
$154.6K $36.12/SF
− Vacancy
−$7.4K −$1.73/SF
EGI
$147.2K $34.39/SF
− OpEx
−$66.2K −$15.47/SF
NOI
$80.9K $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%
$1,618,900
Cap Rate 7%
$1,156,357
Cap Rate 9%
$899,389
Alternative Uses
Best Use
Apartment 5plus
$1.16M
$1.01M – $1.35M
NOI $80,945 @ 7.0% cap · market cap 3.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.58M
$2.26M – $3.01M
NOI $180,873 @ 7.0% cap · market cap 7.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,127
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 - Six-unit apartment property built in 1962 with a mix of one- and two-bedroom apartments.
Where is this apartment building located?
The property is located at 2351 Sutter Ave Santa Clara, CA.
What is the asking price?
The asking price for this property is $2,388,000.
What are key features of this property?
This property features: 6‑unit apartment community built in 1962 in Santa Clara; Approx. 4,280 rentable SF on a 7,787 SF parcel; Unit mix: three 1 bed/1 bath units and three 2 bed/1 bath units
