Five-Unit Apartment
New
For Sale
$1,800,000
405 Arch ST, Redwood City, CA 94062
Multifamily property with varied one- and two-bedroom layouts, resident laundry, and separately metered utilities.
Property Size3,855 SF
Lot Size0.14 Acres
Price / SF$466.93
Days on Market5
Property Features for 405 Arch ST
General Information
Standard status
Active
Size
3,855 SF
Lot size
0.14 Acres
Property subtype
FiveOrMoreUnits
Net Operating Income
$63,128
Financials
Asking Price
$1,800,000
Cap Rate
3.51%
Gross Income
$112,140
Gross Rent Multiplier
16.05
Site & Location
Highway Access
Yes
Public Transit
Yes
Utilities to Site
Yes
Units
Unit Mix
4 x 1BR/1BA (770 sqft), 1 x 2BR/1BA (775 sqft)
Multifamily Units
5
Amenities
owned washer/dryer
separately metered electric and gas
Siemens circuit-breaker sub-panels
Building Details
Building Size
3,855 SF
Year Built
1923
Listing Agency:
Compass
Listed By:
Nate Gustavson · License #01898316
(415) 786-9410
Source:
Lynnnorth
Added: Sep 16
Changed: Sep 19
Last Checked: Sep 19 at 2:55PM
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 Compass
Investment Insights
Based on property information with market context.
This apartment building contains five units within approximately 3,855 square feet on a 6,000-square-foot lot. The layout includes four 1-bedroom/1-bath residences measuring 770 square feet each and one 2-bedroom/1-bath residence measuring 775 square feet. Built in 1923, the property includes owned washer/dryer equipment, separate electric and gas metering, and Siemens circuit-breaker sub-panels. A California SB 721 inspection has been completed and is on file.
The property is positioned in Redwood City’s Arch Street corridor, west of El Camino Real, in a tree-lined residential setting. Downtown Redwood City, Sequoia Shopping Center, and Caltrain are within walking distance, while Highway 101 and I-280 provide regional access. The property has a 3.51% cap rate and a 16.05 GRM.
The property is positioned in Redwood City’s Arch Street corridor, west of El Camino Real, in a tree-lined residential setting. Downtown Redwood City, Sequoia Shopping Center, and Caltrain are within walking distance, while Highway 101 and I-280 provide regional access. The property has a 3.51% cap rate and a 16.05 GRM.
Key Highlights
- Five apartment units totaling approximately 3,855 square feet
- Unit mix includes four 1‑bedroom/1‑bath units and one 2‑bedroom/1‑bath unit
- 6,000‑square‑foot lot with building constructed in 1923
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
$104,922
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
5.83%
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%
$2,098,440
$2.1M
Cap Rate 7%
$1,498,886
$1.5M
Cap Rate 9%
$1,165,800
$1.2M
Market Conditions
NOI Build-Up for 3,855 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
$201.2K $52.20/SF
− Vacancy
−$10.5K −$2.71/SF
EGI
$190.8K $49.49/SF
− OpEx
−$85.8K −$22.27/SF
NOI
$104.9K $27.22/SF
Area
San Mateo County, CA
Vacancy
5.20%
Lease Rate
$52.20 /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%
$2,098,440
Cap Rate 7%
$1,498,886
Cap Rate 9%
$1,165,800
Alternative Uses
Best Use
Apartment 5plus
$1.50M
$1.31M – $1.75M
NOI $104,922 @ 7.0% cap · market cap 5.83%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$3.06M
$2.68M – $3.57M
NOI $214,345 @ 7.0% cap · market cap 11.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
5
Residential units
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
4,102
Businesses Nearby
Explore this area
Business Placement
Demographics for 94062, CA
26,689
Population
10,496
Households
2.5
Avg Household Size
45
Median Age
68%
College-Educated
98%
High-School Grad
64.7 sq mi
ZIP Area
413
Density / Sq Mi
$233,333
Median Household Income
$115,938
Median Earnings
$2,885
Median Rent
$2,000,001
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Apartment building - Multifamily property with varied one- and two-bedroom layouts, resident laundry, and separately metered utilities.
Where is this apartment building located?
The property is located at 405 Arch ST Redwood City, CA.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Five apartment units totaling approximately 3,855 square feet; Unit mix includes four 1‑bedroom/1‑bath units and one 2‑bedroom/1‑bath unit; 6,000‑square‑foot lot with building constructed in 1923
