232 North 3rd Street
San Jose, CA 95112
Purchase Price
Cap Rate
Property Type
Rentable Square Feet
Price per Unit
Number of Units
Property Description
This 10 unit building is in good condition and there have been numerous capital improvements since 2019 (see attached list). The property is being offered at a discount from the market price due to the six vacant units. The vacant units have not been rented due to owner illness but they are in good condition and are rent ready. There is significant upside potential with this property due to the six vacant units that are ready to be leased at market rent. There are four (4) 2 bedroom/one bath units, three are occupied and have an average rent of $1,588 while only one is vacant. Market rent for this unit is between $2,045 - $2,200/month. There are also four (4) 1 bedroom/one bath units, all of which are vacant and can be rented at market rates, between ($1,750 - $1,950/month). There are also two (2) studio units; One is vacant and one is rented at $1,025/month. Studio units in this area can be rented for approximately $1,500/month depending on size and condition. Rent on the occupied units can be raised in accordance to San Jose’s Apartment Rental Ordinance. All occupied units are currently rented on month-to-month rental agreements. Some of the vacant units are available for viewing. If sold at market rate rents, the cap rate on this building would be 6.1%, the GRM 11.6 and the price per unit would be approximately $315,000/unit. The three story 5,512 SF building was constructed in 1964. The structure is stucco over wood frame on a concrete foundation on a 6,210 SF level lot. The zoning is Residential Multifamily and the Use Code is for 5+ units. There are six tuck-under parking spaces and two uncovered spaces. The owner has allotted these spaces for the one- and two-bedroom units. The property is located less than 1 mile from San Jose State University and is in a desirable neighborhood of multifamily properties. Rents have increased dramatically in the last year due to students and employees returning to work. Additionally, the Downtown rental market continues to rebound significantly and the area is poised for growth with Google's planned campus expansion in the area.
Presented by
Michael Shields, CCIM
01327546, California
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