New Merced Apartment
For Sale
$2,400,000
Pending
40 W 13th Street, Merced, CA 95341
New 10-unit apartment complex near downtown Merced and UC Merced.
Property Size6,665 SF
Lot Size0.26 Acres
Days on Market309
Property Features for 40 W 13th Street
General Information
Standard status
Pending
Size
6,665 SF
Lot size
0.26 Acres
Property subtype
Commercial
Amenities
Central air
Central Air Cooling
Central Heating
Composition Roof
Listing Agency:
REALTY EXECUTIVES OF NORTHERN CALIFORNIA
(209) 385-8500
Listed By:
RANDY HAYER · License #01251542
Source:
Corcoran
Added: Oct 9, 2025
Changed: Aug 8
Last Checked: Aug 8 at 1:58PM
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 REALTY EXECUTIVES OF NORTHERN CALIFORNIA
Investment Insights
Based on property information with market context.
This new 10-unit apartment complex is located in Merced. The property consists of two modern apartment buildings and offers an investment opportunity with ten 2-bedroom, 1-bathroom units. Each unit is approximately 665 sq. ft. and features new appliances, laminate flooring, dual-pane windows, and an indoor laundry room. The open-concept kitchens include granite countertops that connect to the formal living room. The property includes solar panels and a new 30-year composition roof. Residents will have access to private parking, a landscaped front area, and concrete driveways and walkways. The property has Enterprise zoning, which supports a range of residential, commercial, and mixed-use developments. The project is scheduled for completion by the end of 2025. The property is located minutes from downtown Merced, UC Merced, shopping centers, and major highways.
Key Highlights
- Brand new 10‑unit apartment complex offering a turn‑key, income‑producing investment.
- Enterprise zoning provides flexible land‑use allowances.
- Each unit features modern amenities including new appliances, laminate flooring, dual‑pane windows, indoor laundry, and granite countertops.
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
$81,072
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
3.38%
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%
$1,621,440
$1.6M
Cap Rate 7%
$1,158,171
$1.2M
Cap Rate 9%
$900,800
$900.8K
Market Conditions
NOI Build-Up for 6,665 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
$155.2K $23.28/SF
− Vacancy
−$7.8K −$1.16/SF
EGI
$147.4K $22.12/SF
− OpEx
−$66.3K −$9.95/SF
NOI
$81.1K $12.16/SF
Area
Merced County, CA
Vacancy
5.00%
Lease Rate
$23.28 /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%
$1,621,440
Cap Rate 7%
$1,158,171
Cap Rate 9%
$900,800
Alternative Uses
Best Use
Apartment 5plus
$1.16M
$1.01M – $1.35M
NOI $81,072 @ 7.0% cap · market cap 3.38%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$1.47M
$1.29M – $1.72M
NOI $102,934 @ 7.0% cap · market cap 4.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,541
Businesses Nearby
Explore this area
Business Placement
Demographics for 95341, CA
33,194
Population
9,331
Households
3.6
Avg Household Size
29
Median Age
8%
College-Educated
63%
High-School Grad
146.8 sq mi
ZIP Area
226
Density / Sq Mi
$55,516
Median Household Income
$32,184
Median Earnings
$1,172
Median Rent
$295,300
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 - New 10-unit apartment complex near downtown Merced and UC Merced.
Where is this apartment building located?
The property is located at 40 W 13th Street Merced, CA.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Brand new 10‑unit apartment complex offering a turn‑key, income‑producing investment.; Enterprise zoning provides flexible land‑use allowances.; Each unit features modern amenities including new appliances, laminate flooring, dual‑pane windows, indoor laundry, and granite countertops.
