Berkeley Mixed-Use Investment
For Sale
$15,000,000
2414 Telegraph Avenue, Berkeley, CA 94704
Mixed-use building near UC Berkeley with value-add potential.
Property Size39,682 SF
Price / SF$378.01
Days on Market282
Property Features for 2414 Telegraph Avenue
General Information
Standard status
Active
Size
39,682 SF
Property subtype
Multifamily
Net Operating Income
$671,383
Building Details
Building Size
39,682 SF
Year Built
1919
Listing Agency:
NAI Northern California
(510) 290-9647
Listed By:
James Kilpatrick · License #CalDRE #01277022
Source:
Naiglobal
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 29 at 6:13AM
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 NAI Northern California
Investment Insights
Based on property information with market context.
Located two blocks from UC Berkeley in the Telegraph Avenue District, this mixed-use building at 2414 Telegraph Avenue presents an investment opportunity. The six-story building includes five ground-floor retail spaces, a 2,000-square-foot income-producing patio, and thirty-seven residential units. The residential units consist of 10 studios, 17 one-bedroom, and 10 two-bedroom units. Constructed in 1919, the building retains classic architectural details. Situated on a 16,325 square foot lot, the property measures approximately 40,000 square feet and includes private parking accessible via Channing Way. Recent capital improvements include seismic retrofitting, an upgraded roof system, upgraded electrical service, a full electrical rewire, and upgraded plumbing. The residential units feature hardwood floors, crown molding, built-in cabinetry, and closet storage. There is value-add potential through ADU conversion or new construction expansion. The north side access region on Channing Way features a 1,430-square-foot vacant retail building adjacent to ten carports, which have the potential to be converted to habitable space. The property is located just south of Channing Way, a short walk from the UC Berkeley campus. The property has five parking spaces and ten carports with redevelopment potential.
Key Highlights
- Premier location adjacent to UC Berkeley, ensuring high demand.
- Significant capital improvements including seismic retrofit and upgraded systems.
- Value‑add potential through ADU conversion/addition or new construction expansion.
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
$924,987
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
6.17%
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%
$18,499,740
$18.5M
Cap Rate 7%
$13,214,100
$13.2M
Cap Rate 9%
$10,277,633
$10.3M
Market Conditions
NOI Build-Up for 39,682 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
$1.43M $36.00/SF
− Vacancy
−$107.1K −$2.70/SF
EGI
$1.32M $33.30/SF
− OpEx
−$396.4K −$9.99/SF
NOI
$925.0K $23.31/SF
Area
Berkeley, CA
Vacancy
7.50%
Lease Rate
$36.00 /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%
$18,499,740
Cap Rate 7%
$13,214,100
Cap Rate 9%
$10,277,633
Alternative Uses
Best Use
Retail
$13.21M
$11.56M – $15.42M
NOI $924,987 @ 7.0% cap · market cap 6.17%
Second Best
Apartment 5plus
$11.27M
$9.86M – $13.15M
NOI $788,715 @ 7.0% cap · market cap 5.26%
Theoretical Best
Specialty Retail
$15.35M
$13.43M – $17.90M
NOI $1,074,271 @ 7.0% cap · market cap 7.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,456
Businesses Nearby
Explore this area
Business Placement
Demographics for 94704, CA
25,259
Population
9,722
Households
2.6
Avg Household Size
26
Median Age
72%
College-Educated
96%
High-School Grad
0.9 sq mi
ZIP Area
28,066
Density / Sq Mi
$52,105
Median Household Income
$17,509
Median Earnings
$1,987
Median Rent
$918,500
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 - Mixed-use building near UC Berkeley with value-add potential.
Where is this mixed-use property located?
The property is located at 2414 Telegraph Avenue Berkeley, CA.
What is the asking price?
The asking price for this property is $15,000,000.
What are key features of this property?
This property features: Premier location adjacent to UC Berkeley, ensuring high demand.; Significant capital improvements including seismic retrofit and upgraded systems.; Value‑add potential through ADU conversion/addition or new construction expansion.
