Multifamily Property with 19
For Sale
Contact for pricing
Pending
2705 Homestead Rd, Santa Clara, CA 95051
Multifamily property featuring 19 units in Santa Clara, California.
Property Size18,888 SF
Days on Market180
Property Features for 2705 Homestead Rd
General Information
Standard status
Pending
Size
18,888 SF
Class
C
Property subtype
Multifamily
Zoning
Residential 3 (R$-3)
Investment Type
Stabilized
Building Details
Year Built
1960
Buildings
1
Stories
2
Units
19
Listing Agency:
Compass Commercial Real Estate
(408) 335-3009
Listed By:
Tony Odom · License #CA 01817881
Source:
Crexi
Added: Feb 25
Changed: Aug 8
Last Checked: Aug 3 at 12:07PM
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 Compass Commercial Real Estate
Investment Insights
Based on property information with market context.
This multifamily property, located in Santa Clara, California, comprises 19 units. The property is suitable for residential income purposes and is classified as an apartment building. The total building size is 18888 square feet.
Key Highlights
- Multifamily property featuring 19 units.
- Priced at $326,316 per unit.
- Constructed in 1960.
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
$357,218
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
5.76%
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%
$7,144,360
$7.1M
Cap Rate 7%
$5,103,114
$5.1M
Cap Rate 9%
$3,969,089
$4.0M
Market Conditions
NOI Build-Up for 18,888 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
$682.2K $36.12/SF
− Vacancy
−$32.7K −$1.73/SF
EGI
$649.5K $34.39/SF
− OpEx
−$292.3K −$15.47/SF
NOI
$357.2K $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%
$7,144,360
Cap Rate 7%
$5,103,114
Cap Rate 9%
$3,969,089
Alternative Uses
Best Use
Apartment 5plus
$5.10M
$4.47M – $5.95M
NOI $357,218 @ 7.0% cap · market cap 5.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.40M
$9.98M – $13.30M
NOI $798,208 @ 7.0% cap · market cap 12.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
652
Businesses Nearby
Explore this area
Business Placement
Demographics for 95051, CA
61,466
Population
25,152
Households
2.4
Avg Household Size
36
Median Age
71%
College-Educated
95%
High-School Grad
6.6 sq mi
ZIP Area
9,313
Density / Sq Mi
$185,632
Median Household Income
$107,905
Median Earnings
$3,054
Median Rent
$1,623,600
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 - Multifamily property featuring 19 units in Santa Clara, California.
Where is this apartment building located?
The property is located at 2705 Homestead Rd Santa Clara, CA.
What is the asking price?
The asking price for this property is $6,200,000.
What are key features of this property?
This property features: Multifamily property featuring 19 units.; Priced at $326,316 per unit.; Constructed in 1960.
