Rare Multi-Family Investment Opportunity in San Jose’s Opportunity Zone

Investors seeking value-add potential in a high-growth corridor now have access to a unique two-parcel, six-unit multifamily property in San Jose, California. Located in the 95116 ZIP code near the future 28th Street/Little Portugal BART Station and Five Wounds Urban Village, this offering presents a rare chance to acquire income-producing real estate within a designated Opportunity Zone.

The property, listed at $1,500,000, consists of two separate parcels that can be sold together or individually. Each parcel contains three residential units, totaling six units across approximately 3,420 square feet of living space per building. Unit mix includes two three-bedroom, 1.5-bath units and four two-bedroom, 1.5-bath units. Built in 1965, the wood-frame structures sit on a combined lot size of 8,381 square feet (approximately 0.19 acres) and are zoned R3, allowing for multifamily residential use.

Key Property Details

• Address: 1200 William Court, San Jose, CA 95116
• MLS Number: ML82044582
• List Price: $1,500,000
• Total Living Area: 6,840 square feet (3,420 sq ft per building)
• Lot Size: 8,381 square feet (0.19 acres)
• Year Built: 1965
• Construction Type: Wood frame
• Zoning: R3 (Multifamily Residential)
• Unit Configuration: Six units total – two 3BR/1.5BA, four 2BR/1.5BA
• Assessor’s Parcel Numbers: 472-04-095 (Units A, B, C) and 472-04-096 (Units D, E, F)
• Annual Property Tax: $11,798
• Stories: Two

Strategic Location and Growth Context

The property is situated in a designated Opportunity Zone, a federal program designed to spur long-term investment in economically distressed areas through tax incentives. Qualified investors may benefit from deferred or reduced capital gains taxes by holding the investment for specified periods.

Its proximity to planned infrastructure enhancements adds strategic value. The site is near the future 28th Street/Little Portugal BART Station, part of Silicon Valley’s expanding transit network. It lies within the Five Wounds Urban Village growth corridor, an area identified for mixed-use development, improved public amenities, and increased density under San Jose’s Envision 2040 general plan.

Current rental rates are noted as below market, indicating strong potential for value appreciation through renovation, improved management, and rent optimization. The property’s generous lot size includes ample parking and carport access, a notable advantage in densely populated urban areas.

Investment Considerations

Although the buildings offer solid foundational structure, they are described as needing some tender loving care (TLC), positioning them as ideal candidates for rehabilitation and repositioning. Typical upgrades may include interior renovations, energy-efficient systems, and exterior improvements to enhance curb appeal and tenant satisfaction.

The combination of below-market rents, transferable parcel ownership, and location within a transit-adjacent Opportunity Zone creates a compelling profile for investors focused on long-term yield and community impact.

Frequently Asked Questions

Can the two parcels be purchased separately?

Yes, the listing specifies that the two parcels (APN 472-04-095 and APN 472-04-096) can be sold together or separately, offering flexibility for investors with varying capital strategies.

What tax benefits are available through the Opportunity Zone designation?

Investors who hold Qualified Opportunity Zone property for at least 10 years may be eligible to exclude from taxable income any capital gains accrued from the investment. Additional benefits include temporary deferral of eligible gains and potential step-up in basis for investments held five or seven years. These incentives are governed by the Internal Revenue Service under the Tax Cuts and Jobs Act of 2017.

Is the property currently generating rental income?

While specific rent roll details are not included in the public listing, the description notes “undermarket rents,” indicating the property is occupied but leased below prevailing market rates, suggesting immediate income with upside potential.

What is the significance of the nearby BART station?

The planned 28th Street/Little Portugal BART Station is expected to improve regional transit access, reduce reliance on personal vehicles, and increase property demand in surrounding neighborhoods — factors that can support long-term appreciation and rental growth.

Conclusion

This San Jose multifamily offering combines rare structural flexibility, geographic advantage, and policy-driven incentives to present a distinctive opportunity in Northern California’s competitive real estate market. With two buildings, six units, and a location poised for transit-led growth, the property appeals to investors seeking both immediate cash flow and long-term value creation through active management and strategic improvements.

As always, prospective buyers should conduct independent due diligence, consult with tax and legal advisors regarding Opportunity Zone compliance, and verify all property details through official disclosures and inspections.