Two-Home Multifamily
New
For Sale
$759,000
40 Tharp Avenue, Watsonville, CA 95076
Separate single-story residences offer two bedrooms each, with central garage units and the option to occupy one while leasing the other.
Property Size1,768 SF
Price / SF$429.30
Days on Market6
Property Features for 40 Tharp Avenue
General Information
Standard status
Active
Size
1,768 SF
Property subtype
Multi Family
Units
Unit Mix
2 x 2BR
Multifamily Units
2
Building Details
Year Built
1939
Buildings
2
Stories
1
Listing Agency:
Russell E. Gross Real Estate
(831) 464-4700
Listed By:
Russell Gross · License #00887251
(831) 464-4700
Source:
Exitrealty
Added: Aug 24
Changed: Aug 28
Last Checked: Aug 29 at 6:22AM
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 Russell E. Gross Real Estate
Investment Insights
Based on property information with market context.
This multifamily property includes two detached, single-level homes situated on one lot. Each residence has two bedrooms, while garage units occupy the space between them and provide physical separation. The layout supports separate occupancy, including the option to live in one home and lease the other. The property was built in 1939 and contains 1,768 of property area as reported.
Located at 40 Tharp Avenue in Watsonville, the property is offered for sale. The adjacent property is also available for purchase, creating a separate opportunity to evaluate both offerings together.
Located at 40 Tharp Avenue in Watsonville, the property is offered for sale. The adjacent property is also available for purchase, creating a separate opportunity to evaluate both offerings together.
Key Highlights
- Two separate homes on one lot
- Each home has two bedrooms
- Single‑level residential layout
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
$45,508
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
6.00%
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%
$910,160
$910.2K
Cap Rate 7%
$650,114
$650.1K
Cap Rate 9%
$505,644
$505.6K
Market Conditions
NOI Build-Up for 1,768 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
$84.9K $48.00/SF
− Vacancy
−$2.1K −$1.20/SF
EGI
$82.7K $46.80/SF
− OpEx
−$37.2K −$21.06/SF
NOI
$45.5K $25.74/SF
Area
Santa Cruz County, CA
Vacancy
2.50%
Lease Rate
$48.00 /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%
$910,160
Cap Rate 7%
$650,114
Cap Rate 9%
$505,644
Alternative Uses
Best Use
Apartment 5plus
$650.1K
$568.9K – $758.5K
NOI $45,508 @ 7.0% cap · market cap 6.00%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$1.01M
$884.6K – $1.18M
NOI $70,766 @ 7.0% cap · market cap 9.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
663
Businesses Nearby
Explore this area
Business Placement
Demographics for 95076, CA
84,433
Population
26,488
Households
3.2
Avg Household Size
35
Median Age
19%
College-Educated
72%
High-School Grad
135.1 sq mi
ZIP Area
625
Density / Sq Mi
$86,685
Median Household Income
$36,077
Median Earnings
$1,851
Median Rent
$767,200
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?
Multifamily property - Separate single-story residences offer two bedrooms each, with central garage units and the option to occupy one while leasing the other.
Where is this multifamily property located?
The property is located at 40 Tharp Avenue Watsonville, CA.
What is the asking price?
The asking price for this property is $759,000.
What are key features of this property?
This property features: Two separate homes on one lot; Each home has two bedrooms; Single‑level residential layout
