358 N 7th St 13 Unit Apartment Building $3,458,475 CAD ($266,037 CAD/Unit) 4.25% Cap Rate San Jose, CA 95112

**PROPERTY VIEWING - Friday December 5th, 12-2pm**
This 13-unit building offers an experienced investor a significant value-add opportunity in Downtown San Jose. The unit mix consists of twelve one-bedroom/one bath units and one studio apartment. At present 11 units are rented at an average rate of $1,372/month, far below market. Market rent for a similar size, renovated unit is between $2,000 - $2,100/month. At present this income generates a cap rate of 4.25% and a GRM of 13.77. At market rate, the cap rate would be 9.15% and a GRM of 8.1 – numbers not seen in San Jose for 30 years!
There is also an onsite laundry facility with leased equipment that generates income of $53/month. For a building of this size laundry income should generate at least $150/month, thereby contributing significantly to ROI. The building also has twelve on-site parking spaces with nine covered carports under a separate structure (no tuck-under/soft-story parking).
This value-add opportunity also lists at a unit price of only $192,308 compared to recently sold comparables at $264,048 – a decrease of 27.2%.
In order to generate market rents, the units would need to be renovated and re-rented at market rate. With San Jose’s Apartment Rental Ordinance, rents can only be raised 5% annually. The most recent rental increase for nine of the eleven occupied units takes effect 12/1/2025. This increase is reflected in the numbers above.
There are currently two vacant units which recently gave notice and are available for viewing. These units are purposely being left vacant to allow the investor to renovate, should they so desire, and rent out at market rates.
The property was constructed in 1961 on a 12,420 SF lot. The 6,536 SF, stucco over wood frame structure sits on a concrete perimeter with a concrete driveway and a flat roof. There is deferred maintenance throughout the building including the elevated walkways, exterior, and interior units. This property is ideal for smart money that sees the transformation opportunity that will drive substantial equity creation and income growth through unit renovations and rent increases.
The property requires SB 721 compliance and electrical updates from the existing Zinsco electrical panels and at some point will require new plumbing from the existing galvanized plumbing.
This opportunity is ideal for seasoned multifamily investors who thrive on value-add scenarios, 1031 exchange buyers seeking properties with immediate repositioning potential, and cash buyers ready to implement strategic improvements for high, long-term returns. If you're comfortable with renovation projects and understand that today's maintenance items become tomorrow's forced appreciation, this property offers an excellent combination of stable cash flow and explosive upside potential.