Berkeley Hotel Near UC
For Sale
$19,750,000
920 University Avenue, Berkeley, CA 94710
University Inn – Berkeley, CA
Property Size93,992 SF
Lot Size1.54 Acres
Price / SF$210.12
Days on Market579
Property Features for 920 University Avenue
General Information
Standard status
Active
Property type
Hotels, Other hospitality properties, Other residential income properties, Hospitality properties, Residential income properties
Size
93,992 SF
Elevators
N/A
Lot size
1.54 Acres
Building Details
Year Built
1965
Buildings
1
Stories
3
Units
113
Listing Agency:
(818) 667-0627
Listed By:
David
(818) 667-0627
Added: Jan 28, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
The University Inn is a 113-key, three-story hotel situated on a 1.54-acre lot. Located on University Avenue in Berkeley, California, the property is near the University of California, Berkeley, and Lawrence Berkeley National Laboratory. The hotel features ample parking and banquet space. A full-service restaurant is currently closed. The building size is 93,992 square feet. The location provides access to Tilden Regional Park, Berkeley Marina, and the downtown area. It is located 2.2 miles from UC Berkeley, 12.6 miles from San Francisco, and 16.6 miles from Oakland.
Key Highlights
- 113 room, 3 story interior corridor hotel on 1.54 acres
- Located on University Avenue
- Excess parking & banquet space
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$848,635
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.30%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$16,972,700
$17.0M
Cap Rate 7%
$12,123,357
$12.1M
Cap Rate 9%
$9,429,278
$9.4M
Market Conditions
NOI Build-Up for 93,992 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$2.03M $21.60/SF
− Vacancy
−$243.6K −$2.59/SF
EGI
$1.79M $19.01/SF
− OpEx
−$938.0K −$9.98/SF
NOI
$848.6K $9.03/SF
Area
Berkeley, CA
Vacancy
12.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
52.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$16,972,700
Cap Rate 7%
$12,123,357
Cap Rate 9%
$9,429,278
Alternative Uses
Best Use
Apartment 5plus
$26.69M
$23.35M – $31.14M
NOI $1,868,176 @ 7.0% cap · market cap 9.46%
Second Best
Hotel Hospitality
$12.12M
$10.61M – $14.14M
NOI $848,635 @ 7.0% cap · market cap 4.30%
Theoretical Best
Specialty Retail
$36.35M
$31.81M – $42.41M
NOI $2,544,551 @ 7.0% cap · market cap 12.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,761
Businesses Nearby
Explore this area
Business Placement
Demographics for 94710, CA
9,552
Population
4,105
Households
2.3
Avg Household Size
38
Median Age
65%
College-Educated
92%
High-School Grad
2.2 sq mi
ZIP Area
4,342
Density / Sq Mi
$118,007
Median Household Income
$67,117
Median Earnings
$2,546
Median Rent
$1,084,500
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Hotel - University Inn – Berkeley, CA
Where is this hotel located?
The property is located at 920 University Avenue Berkeley, CA.
What is the asking price?
The asking price for this property is $19,750,000.
What are key features of this property?
This property features: 113 room, 3 story interior corridor hotel on 1.54 acres; Located on University Avenue; Excess parking & banquet space
