Duplex with Creekside
For Sale
$1,699,000
851 Happy Valley Rd, Santa Cruz, CA 95065
Two residences occupy gently rolling acreage with a year-round creek, separate outdoor areas, and updated interior finishes.
Property Size2,112 SF
Lot Size3.76 Acres
Price / SF$804.45
Days on Market1455
Property Features for 851 Happy Valley Rd
General Information
Standard status
Active
Size
2,112 SF
Lot size
3.76 Acres
Property subtype
Residential Income
Taxes and HOA fees
Annual Taxes
$19,980
Listing Agency:
eXp Realty of California Inc
(831) 332-3975
Listed By:
Melody Russell
(831) 332-3975
Source:
Exprealty
Added: Sep 8, 2022
Changed: Aug 31
Last Checked: Aug 30 at 9:05PM
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 eXp Realty of California Inc
Investment Insights
Based on property information with market context.
This duplex property includes a 4-bedroom, 3-bathroom main residence and a separate 2-bedroom, 1-bathroom cottage across 3.76 acres. The reported property size is 2,112 square feet. Recent improvements include luxury vinyl plank flooring, hardwood flooring, select light fixtures, new carpet in the cottage, and fresh interior and exterior paint. The main home includes two primary suites, with one offering flexibility for use as a family room. The cottage adds a creek-facing deck and a fenced yard.
A year-round creek crosses the Santa Cruz property, with usable land and spacing between the residences. Internet service via Comcast Cable is available, and the address is identified as being within the Happy Valley school district.
A year-round creek crosses the Santa Cruz property, with usable land and spacing between the residences. Internet service via Comcast Cable is available, and the address is identified as being within the Happy Valley school district.
Key Highlights
- Duplex with a 4‑bedroom, 3‑bathroom main residence and separate 2‑bedroom, 1‑bathroom cottage
- 3.76 acres with a year‑round creek and usable land
- Reported property size of 2,112 square feet
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
$58,883
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
3.47%
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%
$1,177,660
$1.2M
Cap Rate 7%
$841,186
$841.2K
Cap Rate 9%
$654,256
$654.3K
Market Conditions
NOI Build-Up for 2,112 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
$86.2K $40.80/SF
− Vacancy
−$2.1K −$0.97/SF
EGI
$84.1K $39.83/SF
− OpEx
−$25.2K −$11.95/SF
NOI
$58.9K $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%
$1,177,660
Cap Rate 7%
$841,186
Cap Rate 9%
$654,256
Alternative Uses
Best Use
Multifamily LT 5
$841.2K
$736.0K – $981.4K
NOI $58,883 @ 7.0% cap · market cap 3.47%
Second Best
Apartment 5plus
$776.6K
$679.5K – $906.1K
NOI $54,363 @ 7.0% cap · market cap 3.20%
Theoretical Best
Retail
$1.21M
$1.06M – $1.41M
NOI $84,535 @ 7.0% cap · market cap 4.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
28
Businesses Nearby
Explore this area
Business Placement
Demographics for 95065, CA
8,444
Population
3,090
Households
2.7
Avg Household Size
46
Median Age
50%
College-Educated
96%
High-School Grad
10.9 sq mi
ZIP Area
775
Density / Sq Mi
$142,768
Median Household Income
$52,963
Median Earnings
$2,618
Median Rent
$1,192,200
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?
Duplex - Two residences occupy gently rolling acreage with a year-round creek, separate outdoor areas, and updated interior finishes.
Where is this duplex located?
The property is located at 851 Happy Valley Rd Santa Cruz, CA.
What is the asking price?
The asking price for this property is $1,699,000.
What are key features of this property?
This property features: Duplex with a 4‑bedroom, 3‑bathroom main residence and separate 2‑bedroom, 1‑bathroom cottage; 3.76 acres with a year‑round creek and usable land; Reported property size of 2,112 square feet
