Triplex with Eight-Unit
New
For Sale
$1,350,000
86A 86B Merrydale Rd, San Rafael, CA 94903
Three residential units occupy a large lot with completed studies and architectural concepts for future multifamily expansion.
Property Size1,918 SF
Lot Size0.32 Acres
Days on Market4
Property Features for 86A 86B Merrydale Rd
General Information
Standard status
Active
Size
1,918 SF
Lot size
0.32 Acres
Property subtype
Investment
Units
Unit Mix
1 x 2BR/1BA, 2 x 1BR/1BA
Multifamily Units
3
Additional Details
Gross Income
$81,270
Highway Access
Yes
Building Details
Building Size
1,918 SF
Year Built
1925
Units
3
Listing Agency:
Listed By:
David O'Brien
Source:
Elliman
Added: Aug 20
Changed: Aug 21
Last Checked: Aug 23 at 6:06AM
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 David O'Brien
Investment Insights
Based on property information with market context.
This 1925 triplex includes a detached two-bedroom, one-bath residence with a basement and two attached one-bedroom, one-bath units. One of the attached units also has an additional room. The property occupies a 14,000+ square-foot lot and currently generates rental income from its three-unit configuration.
Pre-development work includes an architect’s feasibility study, soils report, boundary survey, and professionally prepared architectural site plans. The plans present two structural concepts for an eight-unit residential development. Freeway access is noted, and the property is located at 86A and 86B Merrydale Rd in San Rafael, California.
Pre-development work includes an architect’s feasibility study, soils report, boundary survey, and professionally prepared architectural site plans. The plans present two structural concepts for an eight-unit residential development. Freeway access is noted, and the property is located at 86A and 86B Merrydale Rd in San Rafael, California.
Key Highlights
- Three‑unit property with a detached 2‑bedroom, 1‑bath home and two attached 1‑bedroom, 1‑bath units
- 14,000+ square‑foot lot
- Two architectural concepts for an eight‑unit residential development
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
$64,378
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
4.77%
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%
$1,287,560
$1.3M
Cap Rate 7%
$919,686
$919.7K
Cap Rate 9%
$715,311
$715.3K
Market Conditions
NOI Build-Up for 1,918 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
$97.8K $51.00/SF
− Vacancy
−$5.8K −$3.05/SF
EGI
$92.0K $47.95/SF
− OpEx
−$27.6K −$14.39/SF
NOI
$64.4K $33.57/SF
Area
Marin County, CA
Vacancy
5.98%
Lease Rate
$51.00 /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%
$1,287,560
Cap Rate 7%
$919,686
Cap Rate 9%
$715,311
Alternative Uses
Best Use
Multifamily LT 5
$919.7K
$804.7K – $1.07M
NOI $64,378 @ 7.0% cap · market cap 4.77%
Second Best
Apartment 5plus
$396.9K
$347.3K – $463.1K
NOI $27,784 @ 7.0% cap · market cap 2.06%
Theoretical Best
Specialty Retail
$9.37M
$8.20M – $10.93M
NOI $655,805 @ 7.0% cap · market cap 48.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
456
Businesses Nearby
Explore this area
Business Placement
Demographics for 94903, CA
30,514
Population
12,708
Households
2.4
Avg Household Size
47
Median Age
55%
College-Educated
92%
High-School Grad
19.9 sq mi
ZIP Area
1,533
Density / Sq Mi
$127,464
Median Household Income
$57,527
Median Earnings
$3,026
Median Rent
$1,149,400
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 - Three residential units occupy a large lot with completed studies and architectural concepts for future multifamily expansion.
Where is this triplex located?
The property is located at 86A 86B Merrydale Rd San Rafael, CA.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Three‑unit property with a detached 2‑bedroom, 1‑bath home and two attached 1‑bedroom, 1‑bath units; 14,000+ square‑foot lot; Two architectural concepts for an eight‑unit residential development
