7-Unit Apartment
For Sale
$1,685,000
1246 Berkeley Way, Berkeley, CA 94702
COMM RI MULTI-UNITS 5+, Berkeley, CA
Property Size5,975 SF
Lot Size0.20 Acres
Price / SF$282.01
Days on Market49
Property Features for 1246 Berkeley Way
General Information
Property type
Residential Multi Family
Property subtype
Other
Parking features
Parking Lot, On Street
Subdivision
NORTH BERKELEY
Lot features
Level
Standard status
Active
APN
57208122
Size
5,975 SF
Lot size
0.20 Acres
Utilities
Sewer type
Public Sewer
Heating system
Wall Furnace
Water source
Public
Building Details
Year built
1966
Building materials
Stucco, Wood
Listing Agency:
KW Advisors East Bay · Keller Williams Realty
(510) 775-1079
Listed By:
Stephanie Christmas · License #01308253
(510) 461-4663
Added: Jul 30
Changed: Sep 16
Last Checked: Sep 16 at 1:06PM
MLS# 41143329
Copyright © 2026 bridgeMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Located at 1246 Berkeley Way in Berkeley, this 7-unit apartment property consists of two separate buildings built in 1966. The improvements provide approximately 5,975 square feet of living space on an 8,497-square-foot lot, with five three-bedroom, one-bath units and two studios. Studio unit A is scheduled to be delivered vacant.
Parking is available for seven vehicles, with public water and public sewer service. Construction includes stucco and wood, and heating is provided by wall furnaces. The property is near University Ave, The Berkeley Marina, North Berkeley BART, UC Berkeley, Berkeley Bowl, Fourth Street restaurants and shopping, parks, public transportation, and the I-80 Freeway.
Parking is available for seven vehicles, with public water and public sewer service. Construction includes stucco and wood, and heating is provided by wall furnaces. The property is near University Ave, The Berkeley Marina, North Berkeley BART, UC Berkeley, Berkeley Bowl, Fourth Street restaurants and shopping, parks, public transportation, and the I-80 Freeway.
Key Highlights
- 7‑unit apartment property with five 3‑bed x 1‑bath units and two studio units
- Two separate buildings built in 1966
- 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
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
7
Residential units
Yes
Highway access
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Two separate buildings offer a mixed unit configuration with off-street parking and one studio scheduled for vacancy delivery.
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 property with five 3‑bed x 1‑bath units and two studio units; Two separate buildings built in 1966; Approximately 5,975 sqft of living space on an 8,497 sqft lot
