Building Details

Year Built 1973

Buildings 3

Listing Agency: Compass n***@compass.com Show Phone

Listed By: Nate Gustavson · License #01898316 Show Phone

Source: Compass

Added: Apr 24 Changed: Aug 28 Last Checked: Aug 29 at 3:54PM

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Investment Insights

Based on property information with market context.

Beach Surf View Apartments is a well-maintained nine (9) unit multifamily property built in 1973. The unit mix includes three (3) 2-bedroom/1-bath penthouse units and six (6) classic 2-bedroom/1-bath units. Each unit is individually metered and served by all-electric appliances. The penthouse units feature in-unit washer/dryers, while units without in-unit laundry have access to on-site laundry.

The property is sited on a 14,490 square foot lot with approximately 9,756 square feet of improvements and 7,479 square feet of rentable space. Amenities include nine (9) carports plus two (2) open spaces, bike storage, resident storage lockers, and an owners storage room with a bathroom and sink. SB-721 inspection is completed and has passed. The location is described as a short 10-minute walk to the beach and coastal promenade.

Financial highlights provided with the offering include a 5.13% cap rate and a 13.01 GRM.

Key Highlights

• 9‑unit multifamily at 510 Avenue Alhambra in El Granada, in the Pillar Point neighborhood
• Ocean views from every unit
• Unit mix: 3 penthouse 2BD/1BA (~1,000 SF each) plus 6 2BD/1BA units (~675 SF each)

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

$265,530

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

7.23%

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%

$5,310,600 $5.3M

Cap Rate 7%

$3,793,286 $3.8M

Cap Rate 9%

$2,950,333 $3.0M

Market Conditions

NOI Build-Up for 9,756 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

$509.3K $52.20/SF

− Vacancy

−$26.5K −$2.71/SF

EGI

$482.8K $49.49/SF

− OpEx

−$217.3K −$22.27/SF

NOI

$265.5K $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%

$5,310,600

Cap Rate 7%

$3,793,286

Cap Rate 9%

$2,950,333

Alternative Uses

Best Use

Apartment 5plus

$3.79M

$3.32M – $4.43M (±1% cap)

NOI $265,530 @ 7.0% cap · market cap 7.23%

Second Best

—

—

no second resolved use

Theoretical Best

Warehouse

$7.75M

$6.78M – $9.04M (±1% cap)

NOI $542,451 @ 7.0% cap · market cap 14.76%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Apartment buildings

Suggested Use

Top Pick Dental Office Building Supply Real Estate Agency Auto Repair Shop Grocery & Convenience Store Hair Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

196

Businesses Nearby

Explore this area Business Placement

Demographics for 94018, CA

3,513

Population

1,423

Households

2.5

Avg Household Size

47

Median Age

50%

College-Educated

91%

High-School Grad

0.6 sq mi

ZIP Area

5,855

Density / Sq Mi

$225,763

Median Household Income

$108,889

Median Earnings

$2,034

Median Rent

$1,405,400

Median Home Value

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

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Frequently Asked Questions

What type of property is this?

Apartment building - Beach Surf View Apartments is a nine-unit multifamily property with ocean views and individually metered all-electric units.

Where is this apartment building located?

The property is located at 510 Ave Alhambra El Granada, CA.

What is the asking price?

The asking price for this property is $3,675,000.

What are key features of this property?

This property features: 9‑unit multifamily at 510 Avenue Alhambra in El Granada, in the Pillar Point neighborhood; Ocean views from every unit; Unit mix: 3 penthouse 2BD/1BA (~1,000 SF each) plus 6 2BD/1BA units (~675 SF each)