Value-Add Apartment
For Sale
$4,150,000
2388 Karen Drive, Santa Clara, CA 95050
Apartment building with 12 units, including 2BD/1BA and 1BD/1BA layouts, plus a swimming pool.
Property Size9,269 SF
Lot Size0.37 Acres
Price / SF$447.73
Days on Market89
Property Features for 2388 Karen Drive
General Information
Standard status
Active
Size
9,269 SF
Lot size
0.37 Acres
Property subtype
Multi Family
Additional Details
Multifamily Units
12
Taxes and HOA fees
Annual Taxes
$49,417
Amenities
swimming pool
dishwashers
Building Details
Year Built
1963
Listing Agency:
Magnify Real Estate
(877) 776-7718
Listed By:
David Katz · License #01971921
(408) 438-0585
Source:
Exitrealty
Added: Jun 12
Changed: Sep 8
Last Checked: Jun 25 at 5:44PM
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 Magnify Real Estate
Investment Insights
Based on property information with market context.
2388 Karen Drive is a value-add multifamily property featuring 12 total units in a unit mix of (8) 2BD/1BA and (4) 1BD/1BA. The community includes dishwashers and functional floor plans. Outdoor amenities include a swimming pool. The building also has copper plumbing and low-maintenance hardscaping, and it has completed the SB-721 inspection.
The property is located in Santa Clara, with proximity to major employers including NVIDIA (about 2 miles) and Apple (about 3 miles).
Recent capital improvements include a new roof installed in 2019 and a water heater replacement in 2026. The offering consists of 9,269 building square feet on a 0.37-acre parcel.
The property is located in Santa Clara, with proximity to major employers including NVIDIA (about 2 miles) and Apple (about 3 miles).
Recent capital improvements include a new roof installed in 2019 and a water heater replacement in 2026. The offering consists of 9,269 building square feet on a 0.37-acre parcel.
Key Highlights
- 12‑unit apartment building (9,269 SF) on a 0.37‑acre parcel in Santa Clara; built in 1963 and zoned R3
- Unit mix: (8) 2BD/1BA and (4) 1BD/1BA, with dishwashers and functional floor plans
- Major capital improvements include a new roof in 2019 and a water heater installed in 2026
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
$175,299
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
4.22%
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%
$3,505,980
$3.5M
Cap Rate 7%
$2,504,271
$2.5M
Cap Rate 9%
$1,947,767
$1.9M
Market Conditions
NOI Build-Up for 9,269 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
$334.8K $36.12/SF
− Vacancy
−$16.1K −$1.73/SF
EGI
$318.7K $34.39/SF
− OpEx
−$143.4K −$15.47/SF
NOI
$175.3K $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%
$3,505,980
Cap Rate 7%
$2,504,271
Cap Rate 9%
$1,947,767
Alternative Uses
Best Use
Apartment 5plus
$2.50M
$2.19M – $2.92M
NOI $175,299 @ 7.0% cap · market cap 4.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.60M
$4.90M – $6.53M
NOI $391,709 @ 7.0% cap · market cap 9.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
Location Intelligence
Trade Area within ½ mile
862
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 - Apartment building with 12 units, including 2BD/1BA and 1BD/1BA layouts, plus a swimming pool.
Where is this apartment building located?
The property is located at 2388 Karen Drive Santa Clara, CA.
What is the asking price?
The asking price for this property is $4,150,000.
What are key features of this property?
This property features: 12‑unit apartment building (9,269 SF) on a 0.37‑acre parcel in Santa Clara; built in 1963 and zoned R3; Unit mix: (8) 2BD/1BA and (4) 1BD/1BA, with dishwashers and functional floor plans; Major capital improvements include a new roof in 2019 and a water heater installed in 2026
