Investment Overview

317 Ocean Street offers an attractive opportunity to acquire a seven-unit multifamily property in a highly desirable and supply-constrained Santa Cruz rental market. The property consists of five one-bedroom units and two two-bedroom units, providing a diversified unit mix that appeals to a broad tenant base. The property contains approximately 3,700 square feet of rentable building area on an approximately 7,405-square-foot lot and benefits from an established operating history with strong occupancy. Its efficient unit sizes and central Santa Cruz location support consistent rental demand from local professionals, students, and other residents seeking well-located housing. The property also offers opportunities to enhance cash flow over time through rent growth, operational efficiencies, and strategic property improvements. 317 Ocean Street is centrally located along one of Santa Cruz’s primary transportation corridors, providing residents with convenient access to Downtown Santa Cruz, Pacific Avenue, the Santa Cruz Beach Boardwalk, and the city’s extensive retail, dining, and recreational amenities. The property is positioned near Highway 1 with convenient connectivity to Highway 17, providing access to Scotts Valley, San Jose, and the greater Silicon Valley employment market. Residents also benefit from proximity to public transportation, neighborhood services, beaches, and major local employment and educational centers. UC Santa Cruz, Downtown Santa Cruz, and the surrounding coastal employment base create multiple sources of renter demand. This combination of accessibility, amenities, and proximity to both employment and recreation enhances the property’s long-term tenant appeal. Santa Cruz remains one of the Bay Area and Central Coast’s most tightly held residential markets, characterized by limited multifamily inventory, substantial barriers to new development, and a persistent imbalance between housing supply and demand. Geographic constraints, restrictive development conditions, and the high cost of homeownership create structural scarcity that supports the value of existing rental housing. The market benefits from a diverse tenant base driven by UC Santa Cruz, local healthcare and technology employment, tourism, and proximity to Silicon Valley. Santa Cruz’s desirable coastal lifestyle, strong employment connectivity, and limited availability of comparable housing provide additional support for long-term rental demand. These fundamentals position 317 Ocean Street well for durable income and long-term appreciation potential.