San Jose Multifamily Investment
For Sale
$4,600,000
5390 Carryback Avenue, San Jose, CA 95111
14-unit multifamily property in South San Jose, built in 1980.
Property Size12,292 SF
Lot Size0.63 Acres
Price / SF$374.23
Days on Market186
Property Features for 5390 Carryback Avenue
General Information
Standard status
Active
Size
12,292 SF
Lot size
0.63 Acres
Property subtype
Commercial
Amenities
Carport(s)
Coin Operated Laundry
Foam Roof
Gas Heating
Off Street Parking
Wall Furnace Heating
Building Details
Year Built
1980
Listing Agency:
MARCUS & MILLICHAP
(650) 391-1700
Listed By:
JIMMY CASTELLANOS · License #02024152
Source:
Corcoran
Added: Feb 5
Changed: Aug 8
Last Checked: Aug 8 at 1:32PM
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.
This 14-unit multifamily community, built in 1980, is located in South San Jose, offering access to Silicon Valley. The property consists of approximately 12,292 square feet of rentable space on a 27,500 square foot parcel. It features three detached buildings: two six-unit apartment buildings and one two-unit townhouse-style structure. The unit mix includes two three-bedroom, two-bath units with in-unit laundry, two two-bedroom, one-bath townhouse-style units with in-unit laundry, and ten two-bedroom, one-bath apartment units.
Key Highlights
- Strong In‑Place Cap Rate of 5.45%
- Desirable Unit Mix: Includes two 3‑bedroom/2‑bath units and two 2‑bedroom townhouse‑style units, all with in‑unit laundry.
- Located in South San Jose, a gateway to Silicon Valley's innovation and employment base.
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
$286,663
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
6.23%
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%
$5,733,260
$5.7M
Cap Rate 7%
$4,095,186
$4.1M
Cap Rate 9%
$3,185,144
$3.2M
Market Conditions
NOI Build-Up for 12,292 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
$545.8K $44.40/SF
− Vacancy
−$24.6K −$2.00/SF
EGI
$521.2K $42.40/SF
− OpEx
−$234.5K −$19.08/SF
NOI
$286.7K $23.32/SF
Area
ZIP 95111
Vacancy
4.50%
Lease Rate
$44.40 /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%
$5,733,260
Cap Rate 7%
$4,095,186
Cap Rate 9%
$3,185,144
Alternative Uses
Best Use
Apartment 5plus
$4.10M
$3.58M – $4.78M
NOI $286,663 @ 7.0% cap · market cap 6.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.38M
$6.46M – $8.61M
NOI $516,560 @ 7.0% cap · market cap 11.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
488
Businesses Nearby
Explore this area
Business Placement
Demographics for 95111, CA
60,593
Population
16,303
Households
3.7
Avg Household Size
36
Median Age
20%
College-Educated
72%
High-School Grad
5.8 sq mi
ZIP Area
10,447
Density / Sq Mi
$97,162
Median Household Income
$43,577
Median Earnings
$1,954
Median Rent
$826,200
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 - 14-unit multifamily property in South San Jose, built in 1980.
Where is this apartment building located?
The property is located at 5390 Carryback Avenue San Jose, CA.
What is the asking price?
The asking price for this property is $4,600,000.
What are key features of this property?
This property features: Strong In‑Place Cap Rate of 5.45%; Desirable Unit Mix: Includes two 3‑bedroom/2‑bath units and two 2‑bedroom townhouse‑style units, all with in‑unit laundry.; Located in South San Jose, a gateway to Silicon Valley's innovation and employment base.
