Mixed-Use Property with Retail
For Sale
Contact for pricing
2701 Alum Rock Avenue, San Jose, CA 95127
Apartment and retail components occupy a corner site on Alum Rock Avenue.
Property Size4,706 SF
Price / SF$616.23
Days on Market151
Property Features for 2701 Alum Rock Avenue
General Information
Standard status
Active
Size
4,706 SF
Property subtype
Retail, Multifamily, Mixed Use
Occupancy
100%
Additional Details
Asking Price
$7,350,000
Road Access
Yes
Multifamily Units
8
Building Details
Units
10
Tenancy
Multi
Listing Agency:
Meacham Oppenheimer
Listed By:
Jeremy Awdisho · License #02064232
Source:
Crexi
Added: Apr 11
Changed: Sep 8
Last Checked: Sep 1 at 2:23PM
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 Meacham Oppenheimer
Investment Insights
Based on property information with market context.
This mixed-use property combines an 8-unit apartment complex with approximately 9,200 square feet of retail space. The retail improvements date to 1950, while the multifamily building was constructed in 1954 and remodeled in 1990, creating distinct residential and commercial components within one property.
The site occupies the northeast corner of N. Capitol Avenue and Alum Rock Avenue in San Jose. The seller has indicated that a 5-story mixed-use redevelopment may be possible; any future development concept and related approvals should be independently investigated by the buyer.
The site occupies the northeast corner of N. Capitol Avenue and Alum Rock Avenue in San Jose. The seller has indicated that a 5-story mixed-use redevelopment may be possible; any future development concept and related approvals should be independently investigated by the buyer.
Key Highlights
- 8‑unit apartment complex included
- Approximately 9,200 square feet of retail space
- Northeast corner of N. Capitol Avenue and Alum Rock Avenue
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
$127,116
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%
$2,542,320
$2.5M
Cap Rate 7%
$1,815,943
$1.8M
Cap Rate 9%
$1,412,400
$1.4M
Market Conditions
NOI Build-Up for 4,706 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
$190.3K $40.44/SF
− Vacancy
−$8.7K −$1.85/SF
EGI
$181.6K $38.59/SF
− OpEx
−$54.5K −$11.58/SF
NOI
$127.1K $27.01/SF
Area
ZIP 95127
Vacancy
4.58%
Lease Rate
$40.44 /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%
$2,542,320
Cap Rate 7%
$1,815,943
Cap Rate 9%
$1,412,400
Alternative Uses
Best Use
Retail
$1.82M
$1.59M – $2.12M
NOI $127,116 @ 7.0% cap · market cap 4.38%
Second Best
Mixed Use
$1.36M
$1.19M – $1.59M
NOI $95,297 @ 7.0% cap · market cap 3.29%
Theoretical Best
Office A
$2.83M
$2.47M – $3.30M
NOI $197,765 @ 7.0% cap · market cap 6.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,152
Businesses Nearby
Explore this area
Business Placement
Demographics for 95127, CA
63,749
Population
16,823
Households
3.8
Avg Household Size
37
Median Age
27%
College-Educated
73%
High-School Grad
19.0 sq mi
ZIP Area
3,355
Density / Sq Mi
$120,548
Median Household Income
$45,348
Median Earnings
$2,549
Median Rent
$995,100
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?
Mixed-use property - Apartment and retail components occupy a corner site on Alum Rock Avenue.
Where is this mixed-use property located?
The property is located at 2701 Alum Rock Avenue San Jose, CA.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: 8‑unit apartment complex included; Approximately 9,200 square feet of retail space; Northeast corner of N. Capitol Avenue and Alum Rock Avenue
