Seven-Unit Apartment
For Sale
$1,300,000
2246 23Rd Ave, Oakland, CA 94606
Fully occupied multifamily property with recent plumbing, electrical, window, and roof upgrades.
Property Size4,715 SF
Days on Market23
Property Features for 2246 23Rd Ave
General Information
Standard status
Active
Size
4,715 SF
Property subtype
5 or More Units
Occupancy
100%
Net Operating Income
$70,803
Financials
Asking Price
$1,300,000
Cap Rate
5.46%
Site & Location
Highway Access
Yes
Public Transit
Yes
Additional Details
Multifamily Units
7
Building Details
Building Size
4,715 SF
Year Built
1926
Listing Agency:
Marcus & Millichap
Listed By:
Joseph Owens
(925) 808-9098
Source:
Coastandcore
Added: Aug 12
Changed: Aug 24
Last Checked: Sep 1 at 11:55PM
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.
Built in 1926, this seven-unit apartment property is fully occupied and includes two live/work-style units that are not permitted for that use. Recent improvements include upgraded plumbing, electrical systems, windows, and roofing.
The property is located at 2246 23rd Ave in Oakland’s Highland Terrace neighborhood, less than 1 mile from Highland Hospital and approximately 1.6 miles from Fruitvale BART. Direct access to I-880 supports regional connectivity. Current cap rate is 5.46%, compared with 7.41% at market rents, while stated rental upside is 20.4% and projected NOI growth potential is 35.6%.
The property is located at 2246 23rd Ave in Oakland’s Highland Terrace neighborhood, less than 1 mile from Highland Hospital and approximately 1.6 miles from Fruitvale BART. Direct access to I-880 supports regional connectivity. Current cap rate is 5.46%, compared with 7.41% at market rents, while stated rental upside is 20.4% and projected NOI growth potential is 35.6%.
Key Highlights
- Seven‑unit multifamily property built in 1926
- Fully occupied apartment asset
- Recent upgrades to plumbing, electrical, windows, and roof
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
$92,633
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
7.13%
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%
$1,852,660
$1.9M
Cap Rate 7%
$1,323,329
$1.3M
Cap Rate 9%
$1,029,256
$1.0M
Market Conditions
NOI Build-Up for 4,715 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
$178.2K $37.80/SF
− Vacancy
−$9.8K −$2.08/SF
EGI
$168.4K $35.72/SF
− OpEx
−$75.8K −$16.07/SF
NOI
$92.6K $19.65/SF
Area
ZIP 94606
Vacancy
5.50%
Lease Rate
$37.80 /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%
$1,852,660
Cap Rate 7%
$1,323,329
Cap Rate 9%
$1,029,256
Alternative Uses
Best Use
Apartment 5plus
$1.32M
$1.16M – $1.54M
NOI $92,633 @ 7.0% cap · market cap 7.13%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.15M
$1.88M – $2.51M
NOI $150,349 @ 7.0% cap · market cap 11.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Residential units
100%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,421
Businesses Nearby
Explore this area
Business Placement
Demographics for 94606, CA
40,768
Population
17,457
Households
2.3
Avg Household Size
37
Median Age
40%
College-Educated
80%
High-School Grad
2.3 sq mi
ZIP Area
17,725
Density / Sq Mi
$70,769
Median Household Income
$47,558
Median Earnings
$1,775
Median Rent
$747,600
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 - Fully occupied multifamily property with recent plumbing, electrical, window, and roof upgrades.
Where is this apartment building located?
The property is located at 2246 23Rd Ave Oakland, CA.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Seven‑unit multifamily property built in 1926; Fully occupied apartment asset; Recent upgrades to plumbing, electrical, windows, and roof
