14-Unit Multifamily Apartment
For Sale
$3,580,000
3047 David Avenue, San Jose, CA 95128
Garden-style 14-unit multifamily building with 10 one-bed and 4 two-bed units on a 13,200 sf parcel.
Property Size8,076 SF
Lot Size0.30 Acres
Price / SF$443.29
Days on Market181
Property Features for 3047 David Avenue
General Information
Standard status
Active
Size
8,076 SF
Lot size
0.30 Acres
Property subtype
Commercial
Additional Details
Highway Access
Yes
Multifamily Units
14
Building Details
Year Built
1958
Construction
garden-style
Listing Agency:
Marcus & Millichap
Listed By:
Jimmy Castellanos · License #(S):CA:02024152
(650) 391-1700
Source:
Sevengables
Added: Mar 11
Changed: Sep 6
Last Checked: Sep 6 at 9:42AM
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
Investment Insights
Based on property information with market context.
3047 David Ave is a 14-unit multifamily apartment building built in 1958. The property includes approximately 8,076 square feet of rentable space and features a garden-style layout designed for straightforward operations. The unit mix consists of ten one-bedroom, one-bath apartments and four two-bedroom, one-bath apartments.
The property is located in San Jose, positioned between Historic Downtown Campbell and Santana Row. The area offers access to dining, retail, and entertainment, with connectivity via Highways 280, 880, and 17. Major tech employers are reported within 3 to 5 miles, including Adobe, eBay, PayPal, Zoom, Western Digital, and Nutanix.
The property is located in San Jose, positioned between Historic Downtown Campbell and Santana Row. The area offers access to dining, retail, and entertainment, with connectivity via Highways 280, 880, and 17. Major tech employers are reported within 3 to 5 miles, including Adobe, eBay, PayPal, Zoom, Western Digital, and Nutanix.
Key Highlights
- 14‑unit multifamily property built in 1958 on a 13,200 SF parcel
- Unit mix includes 10 one‑bedroom/one‑bath units and 4 two‑bedroom/one‑bath units
- Approximately 8,076 SF of rentable space
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
$167,980
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
4.69%
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%
$3,359,600
$3.4M
Cap Rate 7%
$2,399,714
$2.4M
Cap Rate 9%
$1,866,444
$1.9M
Market Conditions
NOI Build-Up for 8,076 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
$319.8K $39.60/SF
− Vacancy
−$14.4K −$1.78/SF
EGI
$305.4K $37.82/SF
− OpEx
−$137.4K −$17.02/SF
NOI
$168.0K $20.80/SF
Area
San Jose, CA
Vacancy
4.50%
Lease Rate
$39.60 /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%
$3,359,600
Cap Rate 7%
$2,399,714
Cap Rate 9%
$1,866,444
Alternative Uses
Best Use
Apartment 5plus
$2.40M
$2.10M – $2.80M
NOI $167,980 @ 7.0% cap · market cap 4.69%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.88M
$4.27M – $5.69M
NOI $341,414 @ 7.0% cap · market cap 9.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,560
Businesses Nearby
Explore this area
Business Placement
Demographics for 95128, CA
34,776
Population
15,193
Households
2.3
Avg Household Size
38
Median Age
52%
College-Educated
90%
High-School Grad
3.9 sq mi
ZIP Area
8,917
Density / Sq Mi
$122,647
Median Household Income
$71,504
Median Earnings
$2,505
Median Rent
$1,214,500
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 - Garden-style 14-unit multifamily building with 10 one-bed and 4 two-bed units on a 13,200 sf parcel.
Where is this apartment building located?
The property is located at 3047 David Avenue San Jose, CA.
What is the asking price?
The asking price for this property is $3,580,000.
What are key features of this property?
This property features: 14‑unit multifamily property built in 1958 on a 13,200 SF parcel; Unit mix includes 10 one‑bedroom/one‑bath units and 4 two‑bedroom/one‑bath units; Approximately 8,076 SF of rentable space
