584 N 2nd St 8 Unit Apartment Building $2,791,840 CAD ($348,980 CAD/Unit) 5.16% Cap Rate San Jose, CA 95112

Tour: Friday, August 8th from 10:30am-12:00pm.
Offering Memorandum and due diligence folder available.
CAP Rate: 5.16% Current, 8.34% Proforma. GRM: 12.59 Current, 8.83 Proforma.
Current Cap Rate: 584 N. 2nd Street is a wonderful eight-unit apartment community located in the heart of Downtown San Jose only two blocks from historic Japantown, one block from the VTA Light Rail Line and walking distance to San Jose State University. Built in 1949, the property is situated on a large 9,522 square foot lot and has a rentable area of 4,644 square feet. It features a courtyard area with lush landscaping on a quiet residential street. There are (2) two-bedroom/one-bathroom, (2) one-bedroom/one-bathroom, and (4) studio units. The one-bedroom and two-bedroom units are large and located at the front and rear of the main building. Amenities at the property include dual pane windows, separate water heaters for each unit, carport parking, and a large storage room at the back of the property. There is an opportunity to renovate the units upon turnover and substantially increase income.
Current ownership of many decades has maintained the property during it tenure and recent capital improvements include upgrading the electrical system with new main and sub-panels, installation of dual pane windows, and reconstruction of a balcony. 584 N. 2nd Street offers the new owner the opportunity to increase income and add value by upgrading the existing unit interiors to meet the demand of high-income technology employees by installing air conditioners, electric car chargers, in-unit laundry, and fully renovating the unit interiors with high specification ?nishes.
Additionally, California Senate Bill 1211 allows for up to 8 ADU units to be added and for parking spaces to be eliminated. The rear storage and laundry room and carport have the potential to be converted into ADUs based on a pre-feasibility analysis by an ADU consultancy. Adding ADU units can drive significant value and prospective buyers are encouraged to contact the City of San Jose’s Planning Department for more information.
The property is located 11 blocks from San Jose State University which is an anchor of the Silicon Valley with thousands of graduates feeding into surrounding technology companies each year. Additionally, Downtown San Jose is undergoing signi?cant revitalization with the prospect of a new Google mega-campus with up to 20,000 workers and the expected extension of BART into Downtown San Jose. The robust high-tech job growth, shortage of housing units, value-add opportunity, spacious and tranquil courtyard-style setting, and proximity to San Jose State University and Downtown San Jose make 584 N. 2nd Street a great opportunity for both the cash-?ow and appreciation-minded investor.