555 S 2nd St · San Jose, CA 95112

$8,280,000

39 bd · 1482.0 ba · 20,521 sqft · MultiFamily public records · 97 Days on market

Built 1928 0.33 ac lot $403/sqft · at area comps Est $7994k · at est.

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Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +23.6/30.0
• DSCR +7.6/10.0
• 1% rule +6.4/10.0
• ARV discount +5.9/15.0
• Schools +4.2/10.0
• Livability +3.9/5.0
• Rent growth +3.6/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 39 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

Marcus & Millichap is pleased to present 555 S. 2nd Street, a 39-unit apartment community located in the heart of Downtown San Jose's vibrant SoFA District. Offered at just $212,000 per unit, the property provides investors with a rare low basis in one of Silicon Valley's most dynamic urban neighborhoods. The asset features 37 studio units, one one-bedroom unit, and a ~900 SF ground-floor commercial storefront, currently vacant. The investment offers strong in-place returns with a 6.93% CAP rate and 8.8 GRM, along with attractive financing options available, creating an opportunity for immediate cash flow in a prime downtown location near San Jose State University, major tech employers, dining, and entertainment. This opportunity presents a rare opportunity to acquire scale in Downtown San Jose at an attractive basis with strong in-place cash flow and long-term upside.

Key facts

• 0.33 acre lot
• Built 1928
• Listed 97 days

Tags

• 39 UNIT APARTMENT COMMUNITY
• PRIME DOWNTOWN LOCATION
• NEAR SAN JOSE STATE UNIVERSITY
• NEAR MAJOR TECH EMPLOYERS
• NEAR DINING AND ENTERTAINMENT

What this means for you Summary

Snapshot

• This is a 39 × 1-bed/?-bath units multifamily listed at $8.28M.

Deal economics

• At list price, monthly cash flow is $16k ($187k/yr) — positive. Per door: $399/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($95k rent vs $8.28M).
• Recommended offer: $7.53M (9.0% below list) — sets the bar for market timing.
• Cap rate 8.5% vs local median 1.6% in San Jose — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 78/100 on livability (#68 in CA, #2,559 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• San Jose Unified (urban): math 39% / reading 52% proficiency, ranked #149 of 517 in CA (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+4.2%/yr); 106 active listings in the ZIP; solid renter incomes; 3,838 units permitted in Santa Clara County in 2024 (1,886 in 5+ unit buildings).
• At $94,553/mo this rent would consume 1273% of the median local household income ($89k/yr) (locally 4364% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $57k of loan paydown is wiped out by about $248k of value loss. Plan a longer hold.
• Santa Clara County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 97 days — a 9% lower offer ($7.53M) is reasonable based on typical stale-listing flexibility.
• 5 sale attempts since 12y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: extreme-heat days projected 7→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $7,534,800 (9.0% below list)

Questions for the listing agent

1. It's been on market 97 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1928 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
8. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
9. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.14% ✓
• Cap rate: 8.55%
• Cash-on-cash: 8.05%
• DSCR: 1.36
• GRM: 7.3

CMA / ARV

• ARV (median comp): $7,994,361
• List price: $8,280,000
• Delta: 3.57%
• Verdict: FAIR
• Comps: 4 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 4.25% rent growth · sell at horizon

5-year hold

• IRR: -2.6%
• Equity multiple: 0.90×
• Total profit: $-227,603
• Equity at exit: $1,234,575

10-year hold

• IRR: 8.5%
• Equity multiple: 1.69×
• Total profit: $1,595,393
• Equity at exit: $715,903

Cash invested: $2,318,400 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (CITY): 0 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City San Jose: 0 Strongly Tenant-Friendly · D+24

Apartment Rent Ordinance covers pre-1979 multifamily.

Methodology + full state rankings →

ZIP-level market 95112

• Rents YoY: 4.2%
• Active inventory: 106
• Price-to-rent: 284.6×

Monthly cashflow live

• Estimated rent: $94,553 high
• Mortgage (P&I): −$43,421
• Tax from tax record: −$12,264 /mo · $147,171/yr
• Insurance: −$3,450
• HOA: −$0
• Vacancy / Maint / Mgmt: −$19,856
• Net cashflow: $15,561

Break-even live

Break-even rent $74,855

Max offer price $8,280,000

Occupancy floor 79%

39-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 39× units	1	—	$94,536
Total (39 units)			$94,553

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $2,070,000
• Closing costs: $248,400
• Reserves months: —
• Total cash needed: —

Listing history 32 events

1. 2026-06-18
   days on market $8,280,000 Active 97 DOM
2. 2026-06-17
   days on market $8,280,000 Active 96 DOM
3. 2026-06-16
   days on market $8,280,000 Active 95 DOM
4. 2026-06-15
   days on market $8,280,000 Active 94 DOM
5. 2026-06-13
   days on market $8,280,000 Active 92 DOM
6. 2026-06-13
   days on market $8,280,000 Active 91 DOM
7. 2026-06-09
   days on market $8,280,000 Active 88 DOM
8. 2026-06-08
   days on market $8,280,000 Active 87 DOM
9. 2026-06-07
   days on market $8,280,000 Active 86 DOM
10. 2026-06-05
    days on market $8,280,000 Active 83 DOM
11. 2026-06-03
    days on market $8,280,000 Active 82 DOM
12. 2026-06-02
    days on market $8,280,000 Active 81 DOM
13. 2026-06-01
    days on market $8,280,000 Active 80 DOM
14. 2026-05-31
    days on market $8,280,000 Active 79 DOM
15. 2026-03-13
    listed $8,280,000 Active 885-char remark

    Show marketing remark (885 chars)

    Marcus & Millichap is pleased to present 555 S. 2nd Street, a 39-unit apartment community located in the heart of Downtown San Jose's vibrant SoFA District. Offered at just $212,000 per unit, the property provides investors with a rare low basis in one of Silicon Valley's most dynamic urban neighborhoods. The asset features 37 studio units, one one-bedroom unit, and a ~900 SF ground-floor commercial storefront, currently vacant. The investment offers strong in-place returns with a 6.93% CAP rate and 8.8 GRM, along with attractive financing options available, creating an opportunity for immediate cash flow in a prime downtown location near San Jose State University, major tech employers, dining, and entertainment. This opportunity presents a rare opportunity to acquire scale in Downtown San Jose at an attractive basis with strong in-place cash flow and long-term upside.

16. 2026-03-13
    listed $8,280,000 Active 885-char remark

    Show marketing remark (885 chars)

    Marcus & Millichap is pleased to present 555 S. 2nd Street, a 39-unit apartment community located in the heart of Downtown San Jose's vibrant SoFA District. Offered at just $212,000 per unit, the property provides investors with a rare low basis in one of Silicon Valley's most dynamic urban neighborhoods. The asset features 37 studio units, one one-bedroom unit, and a ~900 SF ground-floor commercial storefront, currently vacant. The investment offers strong in-place returns with a 6.93% CAP rate and 8.8 GRM, along with attractive financing options available, creating an opportunity for immediate cash flow in a prime downtown location near San Jose State University, major tech employers, dining, and entertainment. This opportunity presents a rare opportunity to acquire scale in Downtown San Jose at an attractive basis with strong in-place cash flow and long-term upside.

17. 2022-04-21
    soldstatus $9,600,000 783-char remark

    Show marketing remark (783 chars)

    Metro Walk offers an opportunity to acquire an excellent income property with a 38-unit apartment complex plus 1 retail store in a dynamic rental location that can be redeveloped potentially in the future. Exterior renovation includes dual pane windows, exterior paint, and lights. 24 units extensively updated most with new kitchen cabinets, countertops, carpet, baseboards, and two-tone paint. Strong in place rents with upside potential. Market GRM/Cap Rate: 13.12 / 5.3%. New laundry room in process for additional income. Outstanding rental location blocks from future Google campus, San Jose State, Diridon Station, San Jose International Airport and future BART station. Strategically located in a designated Opportunity Zone in the vibrant SoFA district of Downtown San Jose.

18. 2022-04-21
    soldstatus $9,600,000

    Show marketing remark (783 chars)

    Metro Walk offers an opportunity to acquire an excellent income property with a 38-unit apartment complex plus 1 retail store in a dynamic rental location that can be redeveloped potentially in the future. Exterior renovation includes dual pane windows, exterior paint, and lights. 24 units extensively updated most with new kitchen cabinets, countertops, carpet, baseboards, and two-tone paint. Strong in place rents with upside potential. Market GRM/Cap Rate: 13.12 / 5.3%. New laundry room in process for additional income. Outstanding rental location blocks from future Google campus, San Jose State, Diridon Station, San Jose International Airport and future BART station. Strategically located in a designated Opportunity Zone in the vibrant SoFA district of Downtown San Jose.

19. 2022-02-03
    price $950
20. 2021-01-06
    listed $10,500,000 783-char remark

    Show marketing remark (783 chars)

    Metro Walk offers an opportunity to acquire an excellent income property with a 38-unit apartment complex plus 1 retail store in a dynamic rental location that can be redeveloped potentially in the future. Exterior renovation includes dual pane windows, exterior paint, and lights. 24 units extensively updated most with new kitchen cabinets, countertops, carpet, baseboards, and two-tone paint. Strong in place rents with upside potential. Market GRM/Cap Rate: 13.12 / 5.3%. New laundry room in process for additional income. Outstanding rental location blocks from future Google campus, San Jose State, Diridon Station, San Jose International Airport and future BART station. Strategically located in a designated Opportunity Zone in the vibrant SoFA district of Downtown San Jose.

21. 2015-02-27
    soldstatus $7,100,000
22. 2015-02-27
    soldstatus $7,100,000
23. 2014-12-01
    historical Contingent
24. 2014-12-01
    soldstatus $7,100,000 Sold
25. 2014-10-31
    listed $6,995,000 Active
26. 2014-10-30
    listed $6,995,000
27. 2013-12-27
    soldstatus $3,450,000
28. 1994-05-11
    soldstatus $50,000
29. 1994-05-11
    soldstatus $50,000
30. 1992-12-30
    soldstatus $40,000
31. 1992-12-30
    soldstatus $40,000
32. 1988-09-02
    soldstatus $1,285,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $147,171 · $12,264/mo
• Projected year-2 tax: $147,171 · $12,264/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone D · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 5/10 Major 7 d/yr ≥93°F today · 14 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 9/10 Extreme 17 unhealthy d/yr today · 17 by 30 yrs out

Taxation est. · year 1

• Rental income: $1,134,636
• − Mortgage interest: −$463,809
• − Property taxes: −$147,171
• − Insurance: −$41,400
• − Repairs & maintenance: −$90,771
• − Management: −$90,771
• − Depreciation: −$240,873
• Taxable income: $59,842
• Est. tax owed @ 24.0%: −$14,362
• After-tax cash flow: $172,375/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: San Jose Unified
• NCES district ID: 0634590
• Math proficiency: 39% ▼ -4.00%
• Reading proficiency: 52% ▼ -3.00%
• Median HH income: $84,567
• Composite: 42.31/100
• National rank: #3259
• State rank: #149 of 517 in CA

Livability — San Jose

• Score: 78/100
• State rank: #68
• US rank: #2559

Category grades

Amenities A+ Commute A+ Cost of living F Crime F Employment A+ Housing B- Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: San Jose, CA
• County: Santa Clara County · 1,806,974 people
• City population: 954,479
• Metro: San Jose-Sunnyvale-Santa Clara, CA
• Population (ZIP): 57,373
• Household income: $89,103
• Rent vs Own: 73.6% rent · 26.4% own
• Severe rent burden: 4364.0

Population outlook (Santa Clara County) Hauer SSP2

• Today (2025): 2,179,074 people
• By 2030: 2,301,297 · +5.6%
• By 2040: 2,528,195 · +16.0%
• By 2050: 2,712,135 · +24.5%
• By 2075: 2,998,701 · +37.6%
• By 2100: 2,931,429 · +34.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.71)
• Race & ethnicity: Hispanic / Latino 41% Asian 27% White 22% Two or more races 18% Black 5% Native American 2%
• Hispanic origin (detail): Mexican 33%
• Common ancestry: Slovak 1% Lithuanian 1% Scotch-Irish 1%
• Foreign-born: 34% · Canada, Vietnam, China
• Languages at home: 48% English-only · Spanish 29% Vietnamese 9% Chinese 6%

Political lean MEDSL · Santa Clara

• 2024 margin: Solid D (+40.0) · D 68.1% · R 28.1% · Other 3.8%
• 2008→2024 swing: -0.9pp no change · 2008: 40.9pp · 2024: 40.0pp
• All cycles: 2024: D+40.0 2020: D+47.4 2016: D+52.5 2012: D+42.1 2008: D+40.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -1025.61%
• Current HPI: 297.1788
• Rent YoY: ▲ 4.25%
• Metro: San Jose-Sunnyvale-Santa Clara, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

+544.4% since first listed

18 events — show timeline

• 2026-03-13 Listed $8,280,000 MLSListings
• 2026-03-13 Listed $8,280,000 bridgeMLS, Bay East AOR, or Contra Costa AOR
• 2022-04-21 Sold (Public Records) $9,600,000 Public Records
• 2022-04-21 Sold (MLS) $9,600,000 San Francisco MLS
• 2022-02-03 Price Changed $950 RENT.
• 2021-01-06 Listed $10,500,000 San Francisco MLS
• 2015-02-27 Sold (Public Records) $7,100,000 Public Records
• 2015-02-27 Sold (MLS) $7,100,000 bridgeMLS, Bay East AOR, or Contra Costa AOR
• 2014-12-01 Contingent — MLSListings
• 2014-12-01 Sold (MLS) $7,100,000 MLSListings
• 2014-10-31 Listed $6,995,000 MLSListings
• 2014-10-30 Listed $6,995,000 bridgeMLS, Bay East AOR, or Contra Costa AOR
• 2013-12-27 Sold (Public Records) $3,450,000 Public Records
• 1994-05-11 Sold (Public Records) $50,000 Public Records
• 1994-05-11 Sold (Public Records) $50,000 Public Records
• 1992-12-30 Sold (Public Records) $40,000 Public Records
• 1992-12-30 Sold (Public Records) $40,000 Public Records
• 1988-09-02 Sold (Public Records) $1,285,000 Public Records

Property tax history

+9.5%/yr

Latest (2025): $147,171 · +6.7% YoY. Source: county tax records.