7-Unit Apartment
For Sale
$1,685,000
1246 Berkeley Way, Berkeley, CA 94702
Two-building multifamily property with varied unit mix, off-street parking, and one vacant studio.
Property Size5,975 SF
Price / SF$282.01
Days on Market24
Property Features for 1246 Berkeley Way
General Information
Standard status
Active
Size
5,975 SF
Property subtype
Commercial
Amenities
Level
Parking Area
Wall Furnace Heating
Building Details
Year Built
1966
Listing Agency:
KW ADVISORS EAST BAY
(510) 775-1079
Listed By:
STEPHANIE CHRISTMAS · License #01308253
Source:
Corcoran
Added: Aug 8
Changed: Aug 30
Last Checked: Aug 30 at 7:32PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of KW ADVISORS EAST BAY
Investment Insights
Based on property information with market context.
The property at 1246 Berkeley Way comprises two separate apartment buildings with 7 units and approximately 5,975 sqft of living space on an 8,497 sqft lot. The configuration includes four 3-bed x 1-bath apartments, one 3-bed x 2-bath apartment, and two studio units. Studio unit A is vacant, and off-street parking is available for 7 vehicles. Built in 1966, the property offers a combination of larger apartments and studio units within one multifamily asset.
The Berkeley location is just off University Ave and near North Berkeley BART, UC Berkeley, Berkeley Bowl, 4th St restaurants and shopping, parks, public transportation, and the 80 Freeway. The property is available individually or as part of a portfolio sale that includes multifamily properties in Oakland.
The Berkeley location is just off University Ave and near North Berkeley BART, UC Berkeley, Berkeley Bowl, 4th St restaurants and shopping, parks, public transportation, and the 80 Freeway. The property is available individually or as part of a portfolio sale that includes multifamily properties in Oakland.
Key Highlights
- 7‑unit apartment building with two separate buildings
- Unit mix includes four 3‑bed x 1‑bath units, one 3‑bed x 2‑bath unit, and two studio units
- Approximately 5,975 sqft of living space on an 8,497 sqft lot
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
$118,759
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
7.05%
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%
$2,375,180
$2.4M
Cap Rate 7%
$1,696,557
$1.7M
Cap Rate 9%
$1,319,544
$1.3M
Market Conditions
NOI Build-Up for 5,975 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
$227.3K $38.04/SF
− Vacancy
−$11.4K −$1.90/SF
EGI
$215.9K $36.14/SF
− OpEx
−$97.2K −$16.26/SF
NOI
$118.8K $19.88/SF
Area
Berkeley, CA
Vacancy
5.00%
Lease Rate
$38.04 /SF/Yr
Expense Ratio
45.00%
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%
$2,375,180
Cap Rate 7%
$1,696,557
Cap Rate 9%
$1,319,544
Alternative Uses
Best Use
Apartment 5plus
$1.70M
$1.48M – $1.98M
NOI $118,759 @ 7.0% cap · market cap 7.05%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.31M
$2.02M – $2.70M
NOI $161,755 @ 7.0% cap · market cap 9.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,955
Businesses Nearby
Explore this area
Business Placement
Demographics for 94702, CA
17,637
Population
8,209
Households
2.1
Avg Household Size
39
Median Age
65%
College-Educated
95%
High-School Grad
1.3 sq mi
ZIP Area
13,567
Density / Sq Mi
$99,135
Median Household Income
$66,516
Median Earnings
$1,974
Median Rent
$1,168,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Two-building multifamily property with varied unit mix, off-street parking, and one vacant studio.
Where is this apartment building located?
The property is located at 1246 Berkeley Way Berkeley, CA.
What is the asking price?
The asking price for this property is $1,685,000.
What are key features of this property?
This property features: 7‑unit apartment building with two separate buildings; Unit mix includes four 3‑bed x 1‑bath units, one 3‑bed x 2‑bath unit, and two studio units; Approximately 5,975 sqft of living space on an 8,497 sqft lot
