Gilroy Apartment Complex Investment
For Sale
$2,799,000
8275 Westwood Drive, Gilroy, CA 95020
10-unit apartment complex in Gilroy, CA, near major attractions.
Property Size7,313 SF
Lot Size0.56 Acres
Price / SF$382.74
Days on Market137
Property Features for 8275 Westwood Drive
General Information
Standard status
Active
Size
7,313 SF
Lot size
0.56 Acres
Property subtype
Multi Family
Taxes and HOA fees
Annual Taxes
$35,348
Building Details
Year Built
1976
Listing Agency:
Marcus & Millichap
(650) 391-1700
Listed By:
Adam S. Levin · License #01462752
(650) 492-0934
Source:
Exitrealty
Added: Apr 20
Changed: Sep 3
Last Checked: Aug 17 at 1:18PM
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.
Located in Gilroy, CA, 8275 Westwood Dr is a 10-unit apartment complex constructed in 1976. The property has a gross building area of approximately 7,313 square feet and is situated on a 24,245 square foot parcel of land. The complex features large single-story two-bedroom and one-bedroom floor plans. Tenants have access to carport parking, on-site laundry facilities, and private backyards. The property is located 2.1 miles from The Premium Gilroy Outlets and 0.9 miles from the Town Plaza Shopping Center, which offers dining, shopping, and entertainment options. Other nearby attractions include the Annual Gilroy Garlic Festival and the Gilroy Gardens theme park. The location provides convenient access to major transportation corridors, including Highway 101, CA-25, and CA-152, offering connections to San Jose, Watsonville, Salinas, Monterey, and other nearby areas. The property benefits from Gilroy's strong employment fundamentals and low vacancy levels.
Key Highlights
- Prime location in Gilroy, CA, offering easy access to major transportation corridors.
- Proximity to major attractions, including the Premium Gilroy Outlets.
- 10‑unit apartment complex with large single‑story two‑bedroom and one‑bedroom floor plans.
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
$139,006
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%
$2,780,120
$2.8M
Cap Rate 7%
$1,985,800
$2.0M
Cap Rate 9%
$1,544,511
$1.5M
Market Conditions
NOI Build-Up for 7,313 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
$263.3K $36.00/SF
− Vacancy
−$10.5K −$1.44/SF
EGI
$252.7K $34.56/SF
− OpEx
−$113.7K −$15.55/SF
NOI
$139.0K $19.01/SF
Area
Santa Clara County, CA
Vacancy
4.00%
Lease Rate
$36.00 /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%
$2,780,120
Cap Rate 7%
$1,985,800
Cap Rate 9%
$1,544,511
Alternative Uses
Best Use
Apartment 5plus
$1.99M
$1.74M – $2.32M
NOI $139,006 @ 7.0% cap · market cap 4.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.41M
$3.86M – $5.15M
NOI $309,048 @ 7.0% cap · market cap 11.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
712
Businesses Nearby
Explore this area
Business Placement
Demographics for 95020, CA
68,090
Population
20,679
Households
3.3
Avg Household Size
37
Median Age
28%
College-Educated
83%
High-School Grad
151.8 sq mi
ZIP Area
449
Density / Sq Mi
$134,242
Median Household Income
$50,421
Median Earnings
$2,256
Median Rent
$1,005,600
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 - 10-unit apartment complex in Gilroy, CA, near major attractions.
Where is this apartment building located?
The property is located at 8275 Westwood Drive Gilroy, CA.
What is the asking price?
The asking price for this property is $2,799,000.
What are key features of this property?
This property features: Prime location in Gilroy, CA, offering easy access to major transportation corridors.; Proximity to major attractions, including the Premium Gilroy Outlets.; 10‑unit apartment complex with large single‑story two‑bedroom and one‑bedroom floor plans.
