Two-Story
New
For Sale
$1,600,000
2224 Derby St, Berkeley, CA 94705
The unit mix includes two one-bedroom and two two-bedroom residences.
Property Size3,402 SF
Days on Market5
Property Features for 2224 Derby St
General Information
Standard status
Active
Size
3,402 SF
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$24,224
Building Details
Building Size
3,402 SF
Year Built
1926
Stories
2
Units
4
Listing Agency:
(650) 533-7629
Listed By:
Kevin Kanning
(650) 533-7629
Source:
Elliman
Added: Aug 8
Changed: Aug 12
Last Checked: Aug 12 at 10:05AM
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 Kevin Kanning
Investment Insights
Based on property information with market context.
This 1926 Berkeley quadplex contains four residences across a two-story building, with 3,402 square feet of living space. The configuration includes two 1-bedroom units and two 2-bedroom units. Interior features include substantial natural light, built-in cabinetry, and bookshelves. The exterior has been freshly painted, while terrazzo steps lead toward the property’s rear outdoor area.
The building occupies a 6,700-square-foot lot approximately eight blocks from UC Berkeley. The backyard provides off-street parking, bicycle storage, and space for gardening. The property is also near Telegraph Avenue shops, cafes, restaurants, and grocery options, with nearby public K–12 schools and access to public transportation. Walk Score is 92, Bike Score is 99, and Transit Score is 64.
The building occupies a 6,700-square-foot lot approximately eight blocks from UC Berkeley. The backyard provides off-street parking, bicycle storage, and space for gardening. The property is also near Telegraph Avenue shops, cafes, restaurants, and grocery options, with nearby public K–12 schools and access to public transportation. Walk Score is 92, Bike Score is 99, and Transit Score is 64.
Key Highlights
- Four‑unit, two‑story building with 3,402sf of living space
- Unit mix consists of two 1‑Bed units and two 2‑Bed units
- 6,700sf lot approximately eight short blocks from UC Berkeley Campus
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
$77,209
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
4.83%
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%
$1,544,180
$1.5M
Cap Rate 7%
$1,102,986
$1.1M
Cap Rate 9%
$857,878
$857.9K
Market Conditions
NOI Build-Up for 3,402 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
$116.3K $34.20/SF
− Vacancy
−$6.1K −$1.78/SF
EGI
$110.3K $32.42/SF
− OpEx
−$33.1K −$9.73/SF
NOI
$77.2K $22.70/SF
Area
Berkeley, CA
Vacancy
5.20%
Lease Rate
$34.20 /SF/Yr
Expense Ratio
30.00%
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%
$1,544,180
Cap Rate 7%
$1,102,986
Cap Rate 9%
$857,878
Alternative Uses
Best Use
Multifamily LT 5
$1.10M
$965.1K – $1.29M
NOI $77,209 @ 7.0% cap · market cap 4.83%
Second Best
Apartment 5plus
$966.0K
$845.2K – $1.13M
NOI $67,618 @ 7.0% cap · market cap 4.23%
Theoretical Best
Specialty Retail
$1.32M
$1.15M – $1.53M
NOI $92,099 @ 7.0% cap · market cap 5.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,223
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?
Quadplex - The unit mix includes two one-bedroom and two two-bedroom residences.
Where is this quadplex located?
The property is located at 2224 Derby St Berkeley, CA.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Four‑unit, two‑story building with 3,402sf of living space; Unit mix consists of two 1‑Bed units and two 2‑Bed units; 6,700sf lot approximately eight short blocks from UC Berkeley Campus
