Six-Unit Apartment
For Sale
$1,495,000
729 Forestdale Avenue, San Jose, CA 95116
Six one-bedroom apartments with exterior improvements, updated plumbing, new decking, and a renovated laundry facility.
Property Size3,575 SF
Lot Size0.13 Acres
Price / SF$418.18
Days on Market8
Property Features for 729 Forestdale Avenue
General Information
Standard status
Active
Size
3,575 SF
Lot size
0.13 Acres
Property subtype
General Commercial
Financials
Asking Price
$1,495,000
Gross Income
$112,480
Units
Unit Mix
6 x 1BR/1BA
Multifamily Units
6
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$19,772
Amenities
laundry facility
decking
Composition
Building Details
Year Built
1960
Listing Agency:
(831) 224-6903
Listed By:
Redwood Property Company
Source:
Xome
Added: Aug 3
Changed: Aug 9
Last Checked: Aug 10 at 2:47AM
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 Redwood Property Company
Investment Insights
Based on property information with market context.
This San Jose multifamily property contains six one-bedroom, one-bathroom apartments within a 1960-built apartment building. The improvements include exterior renovations, plumbing repairs, newly constructed decking, and a renovated laundry facility. Required City of San Jose inspections have been completed.
The property occupies a 5,610-square-foot parcel in San Jose, with access to Highways 680 and 101. Downtown San Jose, shopping, and major employment centers are located minutes away. The offering includes a projected pro forma capitalization rate of approximately 8.06%, supported by six residential units and completed capital improvements.
The property occupies a 5,610-square-foot parcel in San Jose, with access to Highways 680 and 101. Downtown San Jose, shopping, and major employment centers are located minutes away. The offering includes a projected pro forma capitalization rate of approximately 8.06%, supported by six residential units and completed capital improvements.
Key Highlights
- Six one‑bedroom, one‑bathroom apartments
- 5,610‑square‑foot parcel in San Jose
- 1960‑built apartment building
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
$74,360
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
4.97%
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%
$1,487,200
$1.5M
Cap Rate 7%
$1,062,286
$1.1M
Cap Rate 9%
$826,222
$826.2K
Market Conditions
NOI Build-Up for 3,575 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
$141.6K $39.60/SF
− Vacancy
−$6.4K −$1.78/SF
EGI
$135.2K $37.82/SF
− OpEx
−$60.8K −$17.02/SF
NOI
$74.4K $20.80/SF
Area
San Jose, CA
Vacancy
4.50%
Lease Rate
$39.60 /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%
$1,487,200
Cap Rate 7%
$1,062,286
Cap Rate 9%
$826,222
Alternative Uses
Best Use
Apartment 5plus
$1.06M
$929.5K – $1.24M
NOI $74,360 @ 7.0% cap · market cap 4.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.16M
$1.89M – $2.52M
NOI $151,134 @ 7.0% cap · market cap 10.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
6
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,053
Businesses Nearby
Explore this area
Business Placement
Demographics for 95116, CA
51,222
Population
13,987
Households
3.7
Avg Household Size
35
Median Age
21%
College-Educated
71%
High-School Grad
3.6 sq mi
ZIP Area
14,228
Density / Sq Mi
$83,428
Median Household Income
$41,992
Median Earnings
$2,049
Median Rent
$842,700
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 - Six one-bedroom apartments with exterior improvements, updated plumbing, new decking, and a renovated laundry facility.
Where is this apartment building located?
The property is located at 729 Forestdale Avenue San Jose, CA.
What is the asking price?
The asking price for this property is $1,495,000.
What are key features of this property?
This property features: Six one‑bedroom, one‑bathroom apartments; 5,610‑square‑foot parcel in San Jose; 1960‑built apartment building
