Fully Rented Triplex With Fenced
For Sale
$725,000
Pending
615 Terrace Street, Salinas, CA 93905
Own a fully rented triplex with updated front unit and private outdoor space for the back unit.
Property Size1,607 SF
Days on Market145
Property Features for 615 Terrace Street
General Information
Standard status
Pending
Size
1,607 SF
Property subtype
Multi Family
Occupancy
100%
Additional Details
Highway Access
Yes
Multifamily Units
3
Building Details
Year Built
1951
Tenancy
Multi
Listing Agency:
Agency One Real Estate
(831) 262-1955
Listed By:
Sean Griffin · License #01466508
(831) 262-1955
Source:
Exitrealty
Added: Mar 19
Changed: Jul 10
Last Checked: Jul 23 at 5:45AM
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 Agency One Real Estate
Investment Insights
Based on property information with market context.
This fully rented triplex includes three residential units. The front unit is a mostly remodeled two-bedroom, one-bath home with updated flooring, kitchen cabinets, and countertops. The back unit is a two-bedroom, one-bath layout with tile flooring, an open floor plan, and access to a small fenced backyard. The third unit offers one bedroom and one bathroom, with tile flooring and a storage shed located in the backyard area.
Located in east Salinas, the property is described as close to shopping, restaurants, Highway 101, and local schools, supporting convenient day-to-day access for tenants.
For an investor or owner-operator, the property offers immediate income from an existing rental setup and the ability to evaluate unit-by-unit upgrades within the current configurations. The owner currently covers trash, septic, and water, which may be a factor for budgeting and future lease structure planning. Rent levels are noted as low in the offering materials, subject to the Salinas rental ordinance.
Located in east Salinas, the property is described as close to shopping, restaurants, Highway 101, and local schools, supporting convenient day-to-day access for tenants.
For an investor or owner-operator, the property offers immediate income from an existing rental setup and the ability to evaluate unit-by-unit upgrades within the current configurations. The owner currently covers trash, septic, and water, which may be a factor for budgeting and future lease structure planning. Rent levels are noted as low in the offering materials, subject to the Salinas rental ordinance.
Key Highlights
- Fully rented 3‑unit triplex built in 1951, with a front 2BD/1BA, back 2BD/1BA, and third 1BD/1BA unit
- Front unit (mostly remodeled) features updated flooring, kitchen cabinets, and kitchen countertops
- Back unit has a 2BD/1BA layout with tile flooring, an open floor plan, and a small fenced backyard
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
$28,068
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
3.87%
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%
$561,360
$561.4K
Cap Rate 7%
$400,971
$401.0K
Cap Rate 9%
$311,867
$311.9K
Market Conditions
NOI Build-Up for 1,607 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
$41.1K $25.56/SF
− Vacancy
−$978 −$0.61/SF
EGI
$40.1K $24.95/SF
− OpEx
−$12.0K −$7.49/SF
NOI
$28.1K $17.47/SF
Area
Salinas, CA
Vacancy
2.38%
Lease Rate
$25.56 /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%
$561,360
Cap Rate 7%
$400,971
Cap Rate 9%
$311,867
Alternative Uses
Best Use
Multifamily LT 5
$401.0K
$350.9K – $467.8K
NOI $28,068 @ 7.0% cap · market cap 3.87%
Second Best
Apartment 5plus
$369.3K
$323.2K – $430.9K
NOI $25,853 @ 7.0% cap · market cap 3.57%
Theoretical Best
Office A
$506.0K
$442.8K – $590.4K
NOI $35,421 @ 7.0% cap · market cap 4.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
926
Businesses Nearby
Explore this area
Business Placement
Demographics for 93905, CA
64,209
Population
14,534
Households
4.4
Avg Household Size
29
Median Age
7%
College-Educated
45%
High-School Grad
9.2 sq mi
ZIP Area
6,979
Density / Sq Mi
$75,716
Median Household Income
$30,715
Median Earnings
$1,799
Median Rent
$570,000
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 - Own a fully rented triplex with updated front unit and private outdoor space for the back unit.
Where is this triplex located?
The property is located at 615 Terrace Street Salinas, CA.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Fully rented 3‑unit triplex built in 1951, with a front 2BD/1BA, back 2BD/1BA, and third 1BD/1BA unit; Front unit (mostly remodeled) features updated flooring, kitchen cabinets, and kitchen countertops; Back unit has a 2BD/1BA layout with tile flooring, an open floor plan, and a small fenced backyard
