Berkeley Apartment Community Value-Add
For Sale
$5,200,000
2231 Grant Street, Berkeley, CA 94703
22-unit apartment community in Berkeley with value-add potential.
Property Size16,733 SF
Price / SF$310.76
Days on Market186
Property Features for 2231 Grant Street
General Information
Standard status
Active
Size
16,733 SF
Property subtype
Commercial
Amenities
Assigned Spaces
Coin Operated Laundry
Electric Heating
Elevator/Lift
Off Street Parking
Rolled Composition Roof
Building Details
Year Built
1967
Listing Agency:
MARCUS & MILLICHAP
(650) 391-1700
Listed By:
EYMON BINESH · License #02060059
Source:
Corcoran
Added: Feb 6
Changed: Aug 8
Last Checked: Aug 8 at 6:06AM
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
Investment Insights
Based on property information with market context.
The property at 2231 Grant Street is a 22-unit apartment community located in Berkeley. The unit mix includes spacious two-bedroom, one-bedroom, and studio floor plans. Situated in a rental market with consistent demand, the property benefits from proximity to major employers and transit, and easy access to downtown Berkeley, UC Berkeley, and neighborhood retail. The property offers a 5.50% in-place cap-rate with upside to an estimated 9% return, combined with an exceptionally low price per unit, presenting a value-add opportunity in one of the Bay Area's rental markets. The property size is 16733 square feet.
Key Highlights
- High In‑Place Cap Rate: Offers a strong 5.50% in‑place cap rate with potential upside to 9% return.
- Value‑Add Opportunity: Presents a rare value‑add opportunity in a supply‑constrained market.
- Strong Rental Market: Located in a highly desirable rental market with consistent demand.
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
$332,583
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
6.40%
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%
$6,651,660
$6.7M
Cap Rate 7%
$4,751,186
$4.8M
Cap Rate 9%
$3,695,367
$3.7M
Market Conditions
NOI Build-Up for 16,733 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
$636.5K $38.04/SF
− Vacancy
−$31.8K −$1.90/SF
EGI
$604.7K $36.14/SF
− OpEx
−$272.1K −$16.26/SF
NOI
$332.6K $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%
$6,651,660
Cap Rate 7%
$4,751,186
Cap Rate 9%
$3,695,367
Alternative Uses
Best Use
Apartment 5plus
$4.75M
$4.16M – $5.54M
NOI $332,583 @ 7.0% cap · market cap 6.40%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$6.47M
$5.66M – $7.55M
NOI $452,996 @ 7.0% cap · market cap 8.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,352
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 - 22-unit apartment community in Berkeley with value-add potential.
Where is this apartment building located?
The property is located at 2231 Grant Street Berkeley, CA.
What is the asking price?
The asking price for this property is $5,200,000.
What are key features of this property?
This property features: High In‑Place Cap Rate: Offers a strong 5.50% in‑place cap rate with potential upside to 9% return.; Value‑Add Opportunity: Presents a rare value‑add opportunity in a supply‑constrained market.; Strong Rental Market: Located in a highly desirable rental market with consistent demand.
