6-Unit Berkeley Apartment
For Sale
$1,650,000
2427 McKinley Ave, Berkeley, CA 94703
Four one-bedroom residences and two studios create a varied unit mix near campus and public transportation.
Property Size2,911 SF
Days on Market53
Property Features for 2427 McKinley Ave
General Information
Standard status
Active
Size
2,911 SF
Property subtype
Multi Family
Occupancy
100%
Units
Unit Mix
4 x 1BR/1BA, 2 x studio
Multifamily Units
6
Parking per Unit
1
Additional Details
Public Transit
Yes
Amenities
on-site coin-operated laundry
Building Details
Building Size
2,911 SF
Year Built
1962
Buildings
1
Construction
mid-century
Listing Agency:
Kite Hill Real Estate
Listed By:
Jatin Mehta · License #02045713
(510) 878-6800
Source:
Annnewtoncane
Added: Aug 11
Changed: Sep 28
Last Checked: Oct 1 at 6:27PM
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 Kite Hill Real Estate
Investment Insights
Based on property information with market context.
Located at 2427 McKinley Ave in Berkeley, this 6-unit apartment property was built in 1962 and includes four 1-bedroom/1-bath units plus two studios. Four residences have been renovated. On-site features include covered garage parking at a 1:1 ratio and coin-operated laundry facilities.
The property is 6–7 blocks from UC Berkeley and a few blocks from Downtown Berkeley BART, with restaurants, cafés, grocery stores, and downtown commercial activity nearby. The location records a Walk Score of 83, a Transit Score of 60, and a Bike Score of 57.
Ownership has completed a soft-story seismic retrofit and sewer lateral compliance work. The building is 100% occupied.
The property is 6–7 blocks from UC Berkeley and a few blocks from Downtown Berkeley BART, with restaurants, cafés, grocery stores, and downtown commercial activity nearby. The location records a Walk Score of 83, a Transit Score of 60, and a Bike Score of 57.
Ownership has completed a soft-story seismic retrofit and sewer lateral compliance work. The building is 100% occupied.
Key Highlights
- 6‑unit apartment building built in 1962
- Unit mix includes 4 1‑bedroom/1‑bath units and 2 studio units
- 4 of 6 units have been renovated
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
$57,859
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
3.51%
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%
$1,157,180
$1.2M
Cap Rate 7%
$826,557
$826.6K
Cap Rate 9%
$642,878
$642.9K
Market Conditions
NOI Build-Up for 2,911 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
$110.7K $38.04/SF
− Vacancy
−$5.5K −$1.90/SF
EGI
$105.2K $36.14/SF
− OpEx
−$47.3K −$16.26/SF
NOI
$57.9K $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%
$1,157,180
Cap Rate 7%
$826,557
Cap Rate 9%
$642,878
Alternative Uses
Best Use
Apartment 5plus
$826.6K
$723.2K – $964.3K
NOI $57,859 @ 7.0% cap · market cap 3.51%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.13M
$985.1K – $1.31M
NOI $78,807 @ 7.0% cap · market cap 4.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
6
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
4,146
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Apartment building - Four one-bedroom residences and two studios create a varied unit mix near campus and public transportation.
Where is this apartment building located?
The property is located at 2427 McKinley Ave Berkeley, CA.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: 6‑unit apartment building built in 1962; Unit mix includes 4 1‑bedroom/1‑bath units and 2 studio units; 4 of 6 units have been renovated
