La Paz Apartment
For Sale
$2,125,000
3820 PENTAGON Drive, South Lake Tahoe, CA 96150
Eight two-bedroom and two one-bedroom residences offer a balanced unit mix with onsite laundry, storage, and dedicated parking.
Property Size7,612 SF
Price / SF$279.16
Days on Market517
Property Features for 3820 PENTAGON Drive
General Information
Standard status
Active
Size
7,612 SF
Property subtype
Multi Family
Occupancy
100%
Units
Unit Mix
8 x 2BR/1BA, 2 x 1BR/1BA
Multifamily Units
10
Amenities
onsite laundry facilities
storage
dedicated on-site parking
Building Details
Year Built
1961
Tenancy
Multi
Listing Agency:
Aston Morley
(916) 719-6205
Listed By:
David J. Howie · License #01368869
(916) 719-6205
Source:
Exitrealty
Added: Mar 7, 2025
Changed: Jul 31
Last Checked: Aug 6 at 6:18AM
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 Aston Morley
Investment Insights
Based on property information with market context.
La Paz Apartments is a 7,612-square-foot multifamily property comprising 10 units: eight two-bedroom, one-bathroom residences and two one-bedroom, one-bathroom residences. Built in 1961, the property includes onsite laundry facilities, storage, and dedicated on-site parking. The property is currently 100% occupied with long-term tenants in place. The offering combines 3820 and 3824 Pentagon Drive across two APNs.
Located within the Tourist Core Area Plan, the property is adjacent to a conservancy lot and within walking distance of restaurants. Heavenly Village, the gondola, Stateline casinos, and additional area destinations are located 0.6 miles away. The property information identifies potential for conversion to transient lodging through acquisition of the required number of Tourist Accommodation Units; no conversion is represented as complete.
Located within the Tourist Core Area Plan, the property is adjacent to a conservancy lot and within walking distance of restaurants. Heavenly Village, the gondola, Stateline casinos, and additional area destinations are located 0.6 miles away. The property information identifies potential for conversion to transient lodging through acquisition of the required number of Tourist Accommodation Units; no conversion is represented as complete.
Key Highlights
- 10‑unit multifamily property totaling 7,612 square feet
- Unit mix includes 8 two‑bedroom/one‑bathroom units and 2 one‑bedroom/one‑bathroom units
- 100% occupancy with long‑term tenants in place
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
$113,219
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
5.33%
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%
$2,264,380
$2.3M
Cap Rate 7%
$1,617,414
$1.6M
Cap Rate 9%
$1,257,989
$1.3M
Market Conditions
NOI Build-Up for 7,612 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
$219.2K $28.80/SF
− Vacancy
−$13.4K −$1.76/SF
EGI
$205.9K $27.04/SF
− OpEx
−$92.6K −$12.17/SF
NOI
$113.2K $14.87/SF
Area
El Dorado County, CA
Vacancy
6.10%
Lease Rate
$28.80 /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%
$2,264,380
Cap Rate 7%
$1,617,414
Cap Rate 9%
$1,257,989
Alternative Uses
Best Use
Apartment 5plus
$1.62M
$1.42M – $1.89M
NOI $113,219 @ 7.0% cap · market cap 5.33%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.72M
$2.38M – $3.18M
NOI $190,500 @ 7.0% cap · market cap 8.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
10
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
631
Businesses Nearby
Explore this area
Business Placement
Demographics for 96150, CA
29,518
Population
23,472
Households
1.3
Avg Household Size
40
Median Age
39%
College-Educated
92%
High-School Grad
163.2 sq mi
ZIP Area
181
Density / Sq Mi
$83,738
Median Household Income
$45,582
Median Earnings
$1,497
Median Rent
$649,100
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?
Apartment building - Eight two-bedroom and two one-bedroom residences offer a balanced unit mix with onsite laundry, storage, and dedicated parking.
Where is this apartment building located?
The property is located at 3820 PENTAGON Drive South Lake Tahoe, CA.
What is the asking price?
The asking price for this property is $2,125,000.
What are key features of this property?
This property features: 10‑unit multifamily property totaling 7,612 square feet; Unit mix includes 8 two‑bedroom/one‑bathroom units and 2 one‑bedroom/one‑bathroom units; 100% occupancy with long‑term tenants in place
