Berkeley Multifamily Investment
For Sale
Contact for pricing
Pending
1430 Josephine St, Berkeley, CA 94703
19-unit multifamily property with value-add potential in Berkeley.
Property Size12,288 SF
Lot Size0.31 Acres
Days on Market158
Property Features for 1430 Josephine St
General Information
Standard status
Pending
Size
12,288 SF
Lot size
0.31 Acres
Property subtype
Multifamily
Occupancy
95%
Building Details
Year Built
1960
Units
19
Listing Agency:
Marcus & Millichap - Palo Alto
(650) 391-1700
Listed By:
Eymon Binesh · License #CA 02060059
Source:
Crexi
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 2:37PM
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 Marcus & Millichap - Palo Alto
Investment Insights
Based on property information with market context.
This 19-unit multifamily property is located in Berkeley. The 12,288-square-foot property is situated on a 0.31-acre lot. The unit mix consists of fifteen 2-bedroom units and four 1-bedroom units. The property offers value-add potential, with current rents approximately 31% below market. The current rent roll is $41,047 per month. A full electrical service upgrade and seismic retrofit have recently been completed in compliance with Berkeley's city ordinance. The property is located near North Berkeley BART, UC Berkeley, and the Shattuck Avenue corridor, benefiting from tenant demand and long-term rental fundamentals. The cap rate is projected to improve from 5.37% to 9.25% as rents are brought to market levels.
Key Highlights
- Significant value‑add potential with rents 31% below market
- Projected cap rate increase from 5.37% to 9.25% as rents are brought to market levels
- Recently completed full electrical service upgrade and seismic retrofit
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
$244,235
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
4.63%
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%
$4,884,700
$4.9M
Cap Rate 7%
$3,489,071
$3.5M
Cap Rate 9%
$2,713,722
$2.7M
Market Conditions
NOI Build-Up for 12,288 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
$467.4K $38.04/SF
− Vacancy
−$23.4K −$1.90/SF
EGI
$444.1K $36.14/SF
− OpEx
−$199.8K −$16.26/SF
NOI
$244.2K $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%
$4,884,700
Cap Rate 7%
$3,489,071
Cap Rate 9%
$2,713,722
Alternative Uses
Best Use
Apartment 5plus
$3.49M
$3.05M – $4.07M
NOI $244,235 @ 7.0% cap · market cap 4.63%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.75M
$4.16M – $5.54M
NOI $332,661 @ 7.0% cap · market cap 6.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,026
Businesses Nearby
Explore this area
Business Placement
Demographics for 94703, CA
20,805
Population
9,654
Households
2.2
Avg Household Size
37
Median Age
71%
College-Educated
95%
High-School Grad
1.3 sq mi
ZIP Area
16,004
Density / Sq Mi
$108,922
Median Household Income
$66,261
Median Earnings
$2,257
Median Rent
$1,273,000
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 - 19-unit multifamily property with value-add potential in Berkeley.
Where is this apartment building located?
The property is located at 1430 Josephine St Berkeley, CA.
What is the asking price?
The asking price for this property is $5,280,000.
What are key features of this property?
This property features: Significant value‑add potential with rents 31% below market; Projected cap rate increase from 5.37% to 9.25% as rents are brought to market levels; Recently completed full electrical service upgrade and seismic retrofit
