Berkeley Multifamily Investment
For Sale
$4,628,000
2801 College Avenue, Berkeley, CA 94705
21-unit apartment community in Berkeley's Elmwood neighborhood.
Property Size10,358 SF
Price / SF$446.80
Days on Market186
Property Features for 2801 College Avenue
General Information
Standard status
Active
Size
10,358 SF
Property subtype
Commercial
Amenities
Coin Operated Laundry
Electric Heating
Off Street Parking
Rolled Composition Roof
Building Details
Year Built
1957
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 6:05AM
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 MARCUS & MILLICHAP
Investment Insights
Based on property information with market context.
This 21-unit apartment community is located on College Avenue in Berkeley. Situated in the Elmwood neighborhood, the property is near the Claremont Hotel and the University of California, Berkeley. Residents have walkable access to Whole Foods Market and various dining, retail, and entertainment options along College Avenue. The property offers a stable, income-oriented investment in one of the Bay Area's established rental corridors.
Key Highlights
- Exceptional location in Berkeley's highly coveted Elmwood neighborhood, near the Claremont Hotel and UC Berkeley.
- Stable, income‑oriented investment with a 5.33% in‑place cap rate and upside to over 7%.
- Durable cash flow, strong fundamentals, and long‑term downside protection.
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
$205,875
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
4.45%
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%
$4,117,500
$4.1M
Cap Rate 7%
$2,941,071
$2.9M
Cap Rate 9%
$2,287,500
$2.3M
Market Conditions
NOI Build-Up for 10,358 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
$394.0K $38.04/SF
− Vacancy
−$19.7K −$1.90/SF
EGI
$374.3K $36.14/SF
− OpEx
−$168.4K −$16.26/SF
NOI
$205.9K $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%
$4,117,500
Cap Rate 7%
$2,941,071
Cap Rate 9%
$2,287,500
Alternative Uses
Best Use
Apartment 5plus
$2.94M
$2.57M – $3.43M
NOI $205,875 @ 7.0% cap · market cap 4.45%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.01M
$3.51M – $4.67M
NOI $280,412 @ 7.0% cap · market cap 6.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,451
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?
Apartment building - 21-unit apartment community in Berkeley's Elmwood neighborhood.
Where is this apartment building located?
The property is located at 2801 College Avenue Berkeley, CA.
What is the asking price?
The asking price for this property is $4,628,000.
What are key features of this property?
This property features: Exceptional location in Berkeley's highly coveted Elmwood neighborhood, near the Claremont Hotel and UC Berkeley.; Stable, income‑oriented investment with a **5.33% in‑place cap rate and upside to over 7%**.; Durable cash flow, strong fundamentals, and long‑term downside protection.
