Two-Story 15-Unit
For Sale
Contact for pricing
3831 PENTAGON DR, South Lake Tahoe, CA 96150
Apartment building with flexible TSC-MU zoning near Lake Tahoe and major resort destinations.
Property Size7,532 SF
Lot Size0.23 Acres
Price / SF$316.25
Days on Market102
Property Features for 3831 PENTAGON DR
General Information
Standard status
Active
Size
7,532 SF
Class
C
Lot size
0.23 Acres
Property subtype
Multifamily
Zoning
TC
Investment Type
Value Add
Additional Details
Multifamily Units
15
Building Details
Year Built
1961
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
United America Realty
Listed By:
Bob Khalsa · License #CA 01340077
(661) 513-4433
Source:
Crexi
Added: May 29
Changed: Sep 6
Last Checked: Sep 6 at 8:05AM
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 United America Realty
Investment Insights
Based on property information with market context.
3831 Pentagon Road is a two-story multifamily property totaling approximately 7,532 square feet, built on a 0.23-acre (10,019-square-foot) parcel. The building includes 15 residential units and is positioned as an established rental asset within the City of South Lake Tahoe, with service provided by the South Tahoe Public Utility District.
The property is centrally located in South Lake Tahoe, just over one-third of a mile from the shores of Lake Tahoe. It is described as minutes from Heavenly Village, the Stateline casino area, major retail and dining, entertainment, transit, and year-round recreation, supporting walkable access to in-town amenities and visitor corridors.
For buyers seeking a multifamily investment, the asset’s Tourist Center Mixed-Use (TSC-MU) zoning is a key differentiator. The TSC-MU designation is noted as flexible and may support a broad range of residential, commercial, hospitality, and mixed-use possibilities, which can align with continued multifamily operation or redevelopment and repositioning strategies. Overall, the combination of an existing 15-unit building, central location, and flexible zoning offers a practical platform for ownership in South Lake Tahoe’s resort market.
The property is centrally located in South Lake Tahoe, just over one-third of a mile from the shores of Lake Tahoe. It is described as minutes from Heavenly Village, the Stateline casino area, major retail and dining, entertainment, transit, and year-round recreation, supporting walkable access to in-town amenities and visitor corridors.
For buyers seeking a multifamily investment, the asset’s Tourist Center Mixed-Use (TSC-MU) zoning is a key differentiator. The TSC-MU designation is noted as flexible and may support a broad range of residential, commercial, hospitality, and mixed-use possibilities, which can align with continued multifamily operation or redevelopment and repositioning strategies. Overall, the combination of an existing 15-unit building, central location, and flexible zoning offers a practical platform for ownership in South Lake Tahoe’s resort market.
Key Highlights
- 15‑unit, two‑story apartment building totaling approximately 7,532 SF
- 0.23‑acre (10,019 SF) parcel in the City of South Lake Tahoe
- TSC‑MU (Tourist Center Mixed‑Use) zoning allowing a broad range of residential, commercial, hospitality, and mixed‑use possibilities
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
$112,029
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
4.70%
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%
$2,240,580
$2.2M
Cap Rate 7%
$1,600,414
$1.6M
Cap Rate 9%
$1,244,767
$1.2M
Market Conditions
NOI Build-Up for 7,532 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
$216.9K $28.80/SF
− Vacancy
−$13.2K −$1.76/SF
EGI
$203.7K $27.04/SF
− OpEx
−$91.7K −$12.17/SF
NOI
$112.0K $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%
$2,240,580
Cap Rate 7%
$1,600,414
Cap Rate 9%
$1,244,767
Alternative Uses
Best Use
Apartment 5plus
$1.60M
$1.40M – $1.87M
NOI $112,029 @ 7.0% cap · market cap 4.70%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.69M
$2.36M – $3.14M
NOI $188,498 @ 7.0% cap · market cap 7.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
15
Residential units
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 - Apartment building with flexible TSC-MU zoning near Lake Tahoe and major resort destinations.
Where is this apartment building located?
The property is located at 3831 PENTAGON DR South Lake Tahoe, CA.
What is the asking price?
The asking price for this property is $2,382,000.
What are key features of this property?
This property features: 15‑unit, two‑story apartment building totaling approximately 7,532 SF; 0.23‑acre (10,019 SF) parcel in the City of South Lake Tahoe; TSC‑MU (Tourist Center Mixed‑Use) zoning allowing a broad range of residential, commercial, hospitality, and mixed‑use possibilities
