San Jose Multifamily Investment
For Sale
$2,100,000
3538 Alden, San Jose, CA 95117
Five spacious units in a desirable West San Jose location.
Property Size5,226 SF
Price / SF$401.84
Days on Market134
Property Features for 3538 Alden
General Information
Standard status
Active
Size
5,226 SF
Property subtype
Commercial
Amenities
Central air
Carport(s)
Ceiling Fan Cooling
Off Street Parking
Shingle Roof
Wall Furnace Heating
Building Details
Year Built
1958
Listing Agency:
MARCUS & MILLICHAP
(650) 391-1700
Listed By:
JOSHUA JOHNSON · License #01930127
Source:
Corcoran
Added: Mar 29
Changed: Aug 8
Last Checked: Aug 8 at 12:27PM
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.
Located in West San Jose, this property offers apartment living in a well-maintained community. The property consists of five two-bedroom/one-bathroom units, averaging 1,045 square feet. On-site shared laundry facilities, carports and open parking, and storage closets are available for all units. Each unit features a large, enclosed patio or balcony. The property has undergone extensive capital improvements over the last several years, including the installation of dual-pane vinyl windows, full repaving of the parking lot, replacement of the landscaping and irrigation system, updates to the laundry room, installation of a new water heater, replacement of the gutters, and new heaters in three of the units. The property is located minutes from shopping, dining, and entertainment. Westfield Valley Fair has more than 200 restaurants and retailers across 2.2 million square feet of space, while Santana Row has about 90 shops and restaurants in nearly 500,000 square feet of space. The property is easily accessible from Interstate 280 and is a short commute to major employment centers in San Jose, Sunnyvale, and Santa Clara. The property size is 5,226 square feet.
Key Highlights
- Extensive recent capital improvements completed, including new windows, repaved parking lot, landscaping, updated laundry room, and new water heater, minimizing near‑term capital expenditures.
- Located in desirable West San Jose.
- Spacious two‑bedroom units averaging 1,045 square feet.
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
$108,700
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
5.18%
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%
$2,174,000
$2.2M
Cap Rate 7%
$1,552,857
$1.6M
Cap Rate 9%
$1,207,778
$1.2M
Market Conditions
NOI Build-Up for 5,226 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
$206.9K $39.60/SF
− Vacancy
−$9.3K −$1.78/SF
EGI
$197.6K $37.82/SF
− OpEx
−$88.9K −$17.02/SF
NOI
$108.7K $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%
$2,174,000
Cap Rate 7%
$1,552,857
Cap Rate 9%
$1,207,778
Alternative Uses
Best Use
Apartment 5plus
$1.55M
$1.36M – $1.81M
NOI $108,700 @ 7.0% cap · market cap 5.18%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.16M
$2.76M – $3.68M
NOI $220,930 @ 7.0% cap · market cap 10.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,694
Businesses Nearby
Explore this area
Business Placement
Demographics for 95117, CA
30,137
Population
11,226
Households
2.7
Avg Household Size
36
Median Age
44%
College-Educated
89%
High-School Grad
2.3 sq mi
ZIP Area
13,103
Density / Sq Mi
$115,778
Median Household Income
$56,791
Median Earnings
$2,367
Median Rent
$1,425,200
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 - Five spacious units in a desirable West San Jose location.
Where is this apartment building located?
The property is located at 3538 Alden San Jose, CA.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: Extensive recent capital improvements completed, including new windows, repaved parking lot, landscaping, updated laundry room, and new water heater, minimizing near‑term capital expenditures.; Located in desirable West San Jose.; Spacious two‑bedroom units averaging 1,045 square feet.
