Charming Triplex for
For Sale
$1,998,000
533 University Avenue, Los Gatos, CA 95032
Triplex near downtown Los Gatos with convenient highway access and local school district appeal for rental-minded owners.
Property Size2,572 SF
Price / SF$776.83
Days on Market83
Property Features for 533 University Avenue
General Information
Standard status
Active
Size
2,572 SF
Property subtype
Residential Income
Zoning
R-1D
Additional Details
Highway Access
Yes
Multifamily Units
3
Amenities
Other
City Lights, Downtown, Hills
Building Details
Building Size
2,572 SF
Year Built
1898
Tenancy
Multi
Listing Agency:
Christie's International Real Estate Sereno
(408) 979-1400
Listed By:
Brian Bernasconi · License #01363508
(408) 979-1400
Source:
Evrealestate
Added: Jun 3
Changed: Aug 23
Last Checked: Aug 24 at 6:04AM
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 Christie's International Real Estate Sereno
Investment Insights
Based on property information with market context.
This for-sale triplex at 533 University Ave is structured as a three-unit residential income property, offering a straightforward configuration for owners seeking a small, manageable multi-family asset. The property is presented as a classic downtown fit with a lifestyle-oriented setting that supports everyday convenience.
Situated in the heart of downtown Los Gatos, the address places daily errands and local dining within reach. WalkScore is listed at 64 (Somewhat Walkable) and BikeScore at 76 (Very Bikeable). The surrounding area is described as close to Oak Meadow Park and the Los Gatos Creek Trail, with the Santa Cruz Mountains also nearby. For regional access, the remarks note convenient routes to Hwy 17 and Hwy 85.
From an ownership standpoint, this triplex can appeal to buyers looking for rental flexibility in a location tied to the Los Gatos Union Elementary School District, including Daves Avenue Elementary, Fisher Middle, and Los Gatos High. With downtown convenience, nearby recreation, and practical access to key highways, it offers a tenant-friendly setting for residential use.
Situated in the heart of downtown Los Gatos, the address places daily errands and local dining within reach. WalkScore is listed at 64 (Somewhat Walkable) and BikeScore at 76 (Very Bikeable). The surrounding area is described as close to Oak Meadow Park and the Los Gatos Creek Trail, with the Santa Cruz Mountains also nearby. For regional access, the remarks note convenient routes to Hwy 17 and Hwy 85.
From an ownership standpoint, this triplex can appeal to buyers looking for rental flexibility in a location tied to the Los Gatos Union Elementary School District, including Daves Avenue Elementary, Fisher Middle, and Los Gatos High. With downtown convenience, nearby recreation, and practical access to key highways, it offers a tenant-friendly setting for residential use.
Key Highlights
- Triplex built in 1898 near downtown Los Gatos
- BikeScore 76 (very bikeable) and walkScore 64 (somewhat walkable)
- Easy access to Hwy 17 and Hwy 85 for travel around Silicon Valley
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
Multi-tenant
Tenancy
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 - Triplex near downtown Los Gatos with convenient highway access and local school district appeal for rental-minded owners.
Where is this triplex located?
The property is located at 533 University Avenue 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: Triplex built in 1898 near downtown Los Gatos; BikeScore 76 (very bikeable) and walkScore 64 (somewhat walkable); Easy access to Hwy 17 and Hwy 85 for travel around Silicon Valley
