New 10-Unit Apartment
For Sale
$2,400,000
40 W 13th St, Merced, CA 95341
New apartment complex with enterprise zoning, completion by end of 2025.
Property Size6,665 SF
Price / SF$360.90
Days on Market177
Property Features for 40 W 13th St
General Information
Standard status
Active
Size
6,665 SF
Property subtype
Multifamily
Building Details
Building Size
6,665 SF
Year Built
2025
Listing Agency:
Realty executives
Listed By:
Randy Hayer · License #CalDRE #01251542
(209) 765-3767
Source:
Svn
Added: Mar 12
Changed: Sep 4
Last Checked: Aug 3 at 4:13AM
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
Investment Insights
Based on property information with market context.
This new 10-unit apartment complex is coming soon to Merced. The property consists of two modern apartment buildings, offering an investment opportunity with ten 2-bedroom, 1-bathroom units. Each unit is approximately 665 sq. ft. and designed for comfort and efficiency. Units feature 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. With Enterprise zoning, the property benefits from flexible land-use allowances that support residential, commercial, and mixed-use developments. The project is scheduled for completion by the end of 2025, offering a turn-key, income-producing property. The location is 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 opportunity.
- Enterprise zoning provides flexible land‑use allowances for potential future expansion and versatility.
- Each unit features modern amenities including brand‑new appliances, laminate flooring, dual‑pane windows, and an indoor laundry room.
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
$80,889
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
3.37%
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%
$1,617,780
$1.6M
Cap Rate 7%
$1,155,557
$1.2M
Cap Rate 9%
$898,767
$898.8K
Market Conditions
NOI Build-Up for 6,650 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
$154.8K $23.28/SF
− Vacancy
−$7.7K −$1.16/SF
EGI
$147.1K $22.12/SF
− OpEx
−$66.2K −$9.95/SF
NOI
$80.9K $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%
$1,617,780
Cap Rate 7%
$1,155,557
Cap Rate 9%
$898,767
Alternative Uses
Best Use
Apartment 5plus
$1.16M
$1.01M – $1.35M
NOI $80,889 @ 7.0% cap · market cap 3.37%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$1.47M
$1.28M – $1.71M
NOI $102,703 @ 7.0% cap · market cap 4.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,489
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 apartment complex with enterprise zoning, completion by end of 2025.
Where is this apartment building located?
The property is located at 40 W 13th St 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 opportunity.; Enterprise zoning provides flexible land‑use allowances for potential future expansion and versatility.; Each unit features modern amenities including brand‑new appliances, laminate flooring, dual‑pane windows, and an indoor laundry room.
