Triplex with
For Sale
$1,998,000
533 University AVE, Los Gatos, CA 95032
Residential Income (2-4 units), LOS GATOS, CA
Property Size2,572 SF
Lot Size0.12 Acres
Price / SF$776.83
Days on Market49
Property Features for 533 University AVE
General Information
Property type
Residential Multi Family
Property subtype
Triplex
Zoning
R-1D
Bedrooms
5
Rooms
Bedroom 2, Bedroom 1, Bedroom 5, Bedroom 3, Bedroom 4
Parking features
On Street, Carport
View
City, Hills
Subdivision
Los Gatos/Monte Sereno
Standard status
Active
Size
2,572 SF
Lot size
0.12 Acres
Utilities
Water source
Public
Building Details
Year built
1898
Number of units
3
Roof type
Composition, Shingle
Listing Agency:
Christie's International Real Estate Sereno
(408) 335-1400
Listed By:
Brian Bernasconi · License #01363508
(408) 979-1400
Added: Jul 9
Changed: Aug 21
Last Checked: Aug 26 at 6:06AM
MLS# ML82047345
Copyright © 2026 MLS Listings, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This three-unit residential property contains 2,572 square feet on a 0.1242-acre lot and was built in 1898. The site includes a carport and on-street parking, with public water service and a composition and shingle roof. The existing layout includes five identified bedrooms across the property.
The property is located in Los Gatos near downtown amenities, including dining, shopping, and community events. Oak Meadow Park and the Los Gatos Creek Trail are nearby, while Highway 17 and Highway 85 provide access through Silicon Valley. The property is within the Los Gatos Union Elementary School District and is zoned R-1D.
Under Section 29.10.320 of the Los Gatos Code of Ordinances, the town will consider an 800-square-foot fourth unit as an ADU above the garage or carport. This consideration provides a defined path for evaluating additional residential capacity, subject to the applicable municipal process.
The property is located in Los Gatos near downtown amenities, including dining, shopping, and community events. Oak Meadow Park and the Los Gatos Creek Trail are nearby, while Highway 17 and Highway 85 provide access through Silicon Valley. The property is within the Los Gatos Union Elementary School District and is zoned R-1D.
Under Section 29.10.320 of the Los Gatos Code of Ordinances, the town will consider an 800-square-foot fourth unit as an ADU above the garage or carport. This consideration provides a defined path for evaluating additional residential capacity, subject to the applicable municipal process.
Key Highlights
- 2,572‑square‑foot triplex on a 0.1242‑acre lot
- Built in 1898 with composition and shingle roofing
- Town will consider an 800‑square‑foot fourth‑unit ADU above the garage/carport
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
$71,708
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
3.59%
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%
$1,434,160
$1.4M
Cap Rate 7%
$1,024,400
$1.0M
Cap Rate 9%
$796,756
$796.8K
Market Conditions
NOI Build-Up for 2,572 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
$104.9K $40.80/SF
− Vacancy
−$2.5K −$0.97/SF
EGI
$102.4K $39.83/SF
− OpEx
−$30.7K −$11.95/SF
NOI
$71.7K $27.88/SF
Area
Santa Cruz County, CA
Vacancy
2.38%
Lease Rate
$40.80 /SF/Yr
Expense Ratio
30.00%
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%
$1,434,160
Cap Rate 7%
$1,024,400
Cap Rate 9%
$796,756
Alternative Uses
Best Use
Multifamily LT 5
$1.02M
$896.4K – $1.20M
NOI $71,708 @ 7.0% cap · market cap 3.59%
Second Best
Apartment 5plus
$945.8K
$827.5K – $1.10M
NOI $66,203 @ 7.0% cap · market cap 3.31%
Theoretical Best
Retail
$1.47M
$1.29M – $1.72M
NOI $102,947 @ 7.0% cap · market cap 5.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,292
Businesses Nearby
Explore this area
Business Placement
Demographics for 95032, CA
28,109
Population
11,146
Households
2.5
Avg Household Size
45
Median Age
76%
College-Educated
98%
High-School Grad
18.7 sq mi
ZIP Area
1,503
Density / Sq Mi
$195,188
Median Household Income
$128,689
Median Earnings
$3,123
Median Rent
$2,000,001
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?
Triplex - Three-unit residential income property with on-street parking, public water service, and a zoning designation of R-1D.
Where is this triplex located?
The property is located at 533 University AVE Los Gatos, CA.
What is the asking price?
The asking price for this property is $1,998,000.
What are key features of this property?
This property features: 2,572‑square‑foot triplex on a 0.1242‑acre lot; Built in 1898 with composition and shingle roofing; Town will consider an 800‑square‑foot fourth‑unit ADU above the garage/carport
