Berkeley Mixed-Use Asset For
For Sale
$4,200,000
1732 University Avenue, Berkeley, CA 94705
25-unit mixed-use property near UC Berkeley with strong performance.
Property Size17,610 SF
Price / SF$238.50
Days on Market146
Property Features for 1732 University Avenue
General Information
Standard status
Active
Size
17,610 SF
Property subtype
Multi-family
Building Details
Year Built
1928
Listing Agency:
Keller Williams Realty
(925) 934-2900
Listed By:
Joey Wang · License #01890931
(714) 497-3550
Source:
Sevengables
Added: Apr 7
Changed: Aug 27
Last Checked: Aug 29 at 10:02AM
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 Keller Williams Realty
Investment Insights
Based on property information with market context.
Located on University Avenue, five blocks from UC Berkeley, the property at 1716-1732 University Ave is a 25-unit mixed-use asset. The 17,610 square foot property includes 20 residential units, consisting of 11 studios and 9 one-bedroom apartments, and 5 commercial spaces. A skylit interior courtyard provides natural light throughout the building. Capital improvements exceeding $2.6 million have been completed, including a seismic retrofit and a new roof in 2022. The location provides access to Downtown Berkeley, BART, dining, and retail. The property offers income and long-term upside.
Key Highlights
- Prime location: 5 blocks from UC Berkeley on University Avenue.
- Strong income potential: Offered at a near 6.5% CAP rate.
- Significant capital improvements: Over $2.6M invested, including seismic retrofit and new roof in 2022.
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
$350,015
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
8.33%
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%
$7,000,300
$7.0M
Cap Rate 7%
$5,000,214
$5.0M
Cap Rate 9%
$3,889,056
$3.9M
Market Conditions
NOI Build-Up for 17,610 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
$669.9K $38.04/SF
− Vacancy
−$33.5K −$1.90/SF
EGI
$636.4K $36.14/SF
− OpEx
−$286.4K −$16.26/SF
NOI
$350.0K $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%
$7,000,300
Cap Rate 7%
$5,000,214
Cap Rate 9%
$3,889,056
Alternative Uses
Best Use
Apartment 5plus
$5.00M
$4.38M – $5.83M
NOI $350,015 @ 7.0% cap · market cap 8.33%
Second Best
Mixed Use
$4.69M
$4.10M – $5.47M
NOI $328,074 @ 7.0% cap · market cap 7.81%
Theoretical Best
Specialty Retail
$6.81M
$5.96M – $7.95M
NOI $476,738 @ 7.0% cap · market cap 11.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,219
Businesses Nearby
Explore this area
Business Placement
Demographics for 94705, CA
13,591
Population
6,335
Households
2.1
Avg Household Size
42
Median Age
79%
College-Educated
98%
High-School Grad
3.4 sq mi
ZIP Area
3,997
Density / Sq Mi
$163,254
Median Household Income
$75,864
Median Earnings
$2,330
Median Rent
$1,892,300
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?
Mixed-use property - 25-unit mixed-use property near UC Berkeley with strong performance.
Where is this mixed-use property located?
The property is located at 1732 University Avenue Berkeley, CA.
What is the asking price?
The asking price for this property is $4,200,000.
What are key features of this property?
This property features: Prime location: 5 blocks from UC Berkeley on University Avenue.; Strong income potential: Offered at a near 6.5% CAP rate.; Significant capital improvements: Over $2.6M invested, including seismic retrofit and new roof in 2022.
