Four-Unit Residential Income
For Sale
$2,080,000
940 Weldwood Court, Los Gatos, CA 95032
Well-maintained four-unit quadplex offers a mix of 3-bedroom, 2-bedroom, and 1-bedroom units.
Property Size3,681 SF
Lot Size0.28 Acres
Price / SF$565.06
Days on Market115
Property Features for 940 Weldwood Court
General Information
Standard status
Active
Size
3,681 SF
Lot size
0.28 Acres
Property subtype
Multi Family
Additional Details
Highway Access
Yes
Multifamily Units
4
Taxes and HOA fees
Annual Taxes
$26,933
Building Details
Year Built
1963
Listing Agency:
Magnify Real Estate
Listed By:
Will Riley · License #02155155
(916) 548-6515
Source:
Exitrealty
Added: May 14
Changed: Sep 4
Last Checked: Jul 25 at 4:13AM
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 Magnify Real Estate
Investment Insights
Based on property information with market context.
940 Weldwood Court is a well-maintained four-unit residential income property in a cul-de-sac setting. The unit mix includes one 3-bedroom/2-bath unit, two 2-bedroom/1-bath units, and one 1-bedroom/1-bath unit. Recent capital improvements include updated kitchens and bathrooms, modern flooring, and professional landscaping.
The property is located on an approximately 12,075 square foot lot and is described as being minutes from Downtown Los Gatos dining and retail, with access to major Silicon Valley employment hubs via Highways 85 and 17.
This four-unit configuration provides a straightforward residential investment profile with multiple unit sizes across the building.
The property is located on an approximately 12,075 square foot lot and is described as being minutes from Downtown Los Gatos dining and retail, with access to major Silicon Valley employment hubs via Highways 85 and 17.
This four-unit configuration provides a straightforward residential investment profile with multiple unit sizes across the building.
Key Highlights
- Well‑maintained 4‑unit quadplex built in 1963
- Unit mix includes one 3BR/2BA, two 2BR/1BA units, and one 1BR/1BA unit
- Located at the end of a quiet cul‑de‑sac on a 12,075 SF lot
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
$102,627
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
4.93%
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%
$2,052,540
$2.1M
Cap Rate 7%
$1,466,100
$1.5M
Cap Rate 9%
$1,140,300
$1.1M
Market Conditions
NOI Build-Up for 3,681 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
$150.2K $40.80/SF
− Vacancy
−$3.6K −$0.97/SF
EGI
$146.6K $39.83/SF
− OpEx
−$44.0K −$11.95/SF
NOI
$102.6K $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%
$2,052,540
Cap Rate 7%
$1,466,100
Cap Rate 9%
$1,140,300
Alternative Uses
Best Use
Multifamily LT 5
$1.47M
$1.28M – $1.71M
NOI $102,627 @ 7.0% cap · market cap 4.93%
Second Best
Apartment 5plus
$1.35M
$1.18M – $1.58M
NOI $94,749 @ 7.0% cap · market cap 4.56%
Theoretical Best
Retail
$2.10M
$1.84M – $2.46M
NOI $147,336 @ 7.0% cap · market cap 7.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
980
Businesses Nearby
Explore this area
Business Placement
Demographics for 95032, CA
28,109
Population
11,146
Households
2.5
Avg Household Size
45
Median Age
76%
College-Educated
98%
High-School Grad
18.7 sq mi
ZIP Area
1,503
Density / Sq Mi
$195,188
Median Household Income
$128,689
Median Earnings
$3,123
Median Rent
$2,000,001
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?
Quadplex - Well-maintained four-unit quadplex offers a mix of 3-bedroom, 2-bedroom, and 1-bedroom units.
Where is this quadplex located?
The property is located at 940 Weldwood Court Los Gatos, CA.
What is the asking price?
The asking price for this property is $2,080,000.
What are key features of this property?
This property features: Well‑maintained 4‑unit quadplex built in 1963; Unit mix includes one 3BR/2BA, two 2BR/1BA units, and one 1BR/1BA unit; Located at the end of a quiet cul‑de‑sac on a 12,075 SF lot
