Apartment Community Across From
For Sale
$6,200,000
402 4th Street, San Jose, CA 95112
19-unit community with a unit mix of eighteen 2-bedroom units and one studio, with individually metered utilities.
Property Size11,228 SF
Price / SF$552.19
Days on Market110
Property Features for 402 4th Street
General Information
Standard status
Active
Size
11,228 SF
Property subtype
Commercial
Additional Details
Multifamily Units
19
Amenities
Attached Garage
Composition Roof
No Heat Heating
Uncovered Parking
Building Details
Year Built
1957
Tenancy
Multi
Listing Agency:
MARCUS & MILLICHAP
(650) 391-1700
Listed By:
MITCHELL ZURICH · License #01870648
Source:
Corcoran
Added: Apr 26
Changed: Aug 8
Last Checked: Aug 13 at 6:06AM
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 MARCUS & MILLICHAP
Investment Insights
Based on property information with market context.
Veridian on 4th is a 19-unit apartment community featuring eighteen 2-bedroom units and one studio. The property has individually metered water, electric, and gas, supporting straightforward utility billing and individual expense management.
The community is located directly across the street from San Jose State University. Residents have walkable access to Downtown San Jose and San Pedro Square, and the property is also close to Diridon Station, providing connectivity to Caltrain, ACE, and future BART service.
With a functional unit mix designed around student, roommate, and young professional living, the community is positioned to serve a consistent rental base supported by SJSU and Silicon Valley employment.
The community is located directly across the street from San Jose State University. Residents have walkable access to Downtown San Jose and San Pedro Square, and the property is also close to Diridon Station, providing connectivity to Caltrain, ACE, and future BART service.
With a functional unit mix designed around student, roommate, and young professional living, the community is positioned to serve a consistent rental base supported by SJSU and Silicon Valley employment.
Key Highlights
- 19‑unit apartment community (built 1957) directly across from San Jose State University
- Unit mix: eighteen 2‑bedroom units and one studio
- Individually metered water, electric, and gas
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
$233,541
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
3.77%
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%
$4,670,820
$4.7M
Cap Rate 7%
$3,336,300
$3.3M
Cap Rate 9%
$2,594,900
$2.6M
Market Conditions
NOI Build-Up for 11,228 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
$444.6K $39.60/SF
− Vacancy
−$20.0K −$1.78/SF
EGI
$424.6K $37.82/SF
− OpEx
−$191.1K −$17.02/SF
NOI
$233.5K $20.80/SF
Area
San Jose, CA
Vacancy
4.50%
Lease Rate
$39.60 /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%
$4,670,820
Cap Rate 7%
$3,336,300
Cap Rate 9%
$2,594,900
Alternative Uses
Best Use
Apartment 5plus
$3.34M
$2.92M – $3.89M
NOI $233,541 @ 7.0% cap · market cap 3.77%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.78M
$5.93M – $7.91M
NOI $474,665 @ 7.0% cap · market cap 7.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
19
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,455
Businesses Nearby
Explore this area
Business Placement
Demographics for 95112, CA
60,754
Population
22,969
Households
2.6
Avg Household Size
33
Median Age
39%
College-Educated
82%
High-School Grad
7.3 sq mi
ZIP Area
8,322
Density / Sq Mi
$89,649
Median Household Income
$45,690
Median Earnings
$2,095
Median Rent
$956,300
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 - 19-unit community with a unit mix of eighteen 2-bedroom units and one studio, with individually metered utilities.
Where is this apartment building located?
The property is located at 402 4th Street San Jose, CA.
What is the asking price?
The asking price for this property is $6,200,000.
What are key features of this property?
This property features: 19‑unit apartment community (built 1957) directly across from San Jose State University; Unit mix: eighteen 2‑bedroom units and one studio; Individually metered water, electric, and gas
