Mixed-Use Property Near UC
For Sale
Contact for pricing
2811-2815 Telegraph Ave, Berkeley, CA 94705
Prime investment opportunity with restaurant space and residential units.
Property Size5,253 SF
Price / SF$276.03
Days on Market653
Property Features for 2811-2815 Telegraph Ave
General Information
Standard status
Active
Size
5,253 SF
Total Parking Spaces
2
Property subtype
Mixed Use, Retail
Net Operating Income
$140,201
Building Details
Year Built
1908
Buildings
1
Units
4
Listing Agency:
Compass - Burlingame
Listed By:
Vincent Heung · License #01866837
Source:
Crexi
Added: Nov 15, 2024
Changed: Aug 16
Last Checked: Aug 28 at 11:30PM
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 Compass - Burlingame
Investment Insights
Based on property information with market context.
This mixed-use property is located steps from UC Berkeley. The property features a vacant restaurant space on the ground floor, previously occupied by Tai Shan Chinese Restaurant. The restaurant space includes a commercial kitchen. The upper levels contain three 2-bedroom, 1-bathroom residential units, with two currently leased and one available. Additionally, there is a bonus 2-bedroom, 1-bathroom rear unit. Situated on Telegraph Avenue, the property benefits from high visibility and foot traffic. The location is within 1 mile of UC Berkeley, providing access to potential customers and tenants. The property is surrounded by amenities and conveniences, contributing to high rental demand. The property size is 5253 square feet. This property is located in Berkeley, CA.
Key Highlights
- Prime location steps from UC Berkeley on Telegraph Avenue, ensuring high visibility and foot traffic.
- High‑income potential with a 7.42% cap rate.
- Mixed‑use property with a vacant, fully equipped commercial restaurant space.
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
$97,863
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
6.75%
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%
$1,957,260
$2.0M
Cap Rate 7%
$1,398,043
$1.4M
Cap Rate 9%
$1,087,367
$1.1M
Market Conditions
NOI Build-Up for 5,253 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
$170.2K $32.40/SF
− Vacancy
−$13.6K −$2.59/SF
EGI
$156.6K $29.81/SF
− OpEx
−$58.7K −$11.18/SF
NOI
$97.9K $18.63/SF
Area
Berkeley, CA
Vacancy
8.00%
Lease Rate
$32.40 /SF/Yr
Expense Ratio
37.50%
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%
$1,957,260
Cap Rate 7%
$1,398,043
Cap Rate 9%
$1,087,367
Alternative Uses
Best Use
Specialty Retail
$2.03M
$1.78M – $2.37M
NOI $142,209 @ 7.0% cap · market cap 9.81%
Second Best
Mixed Use
$1.40M
$1.22M – $1.63M
NOI $97,863 @ 7.0% cap · market cap 6.75%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,383
Businesses Nearby
95k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 43%
Groceries 42%
Dining 9%
Beauty & Spa 3%
Whole Foods Market
Groceries
39,578 visits/mo
0.2 miles
Chevron
Shops & Services
17,240 visits/mo
0.2 miles
7-Eleven
Shops & Services
8,685 visits/mo
0.3 miles
7-Eleven
Shops & Services
8,040 visits/mo
0.3 miles
Peet's Coffee & Tea
Dining
6,246 visits/mo
0.4 miles
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 Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Prime investment opportunity with restaurant space and residential units.
Where is this mixed-use property located?
The property is located at 2811-2815 Telegraph Ave Berkeley, CA.
What is the asking price?
The asking price for this property is $1,450,000.
What are key features of this property?
This property features: Prime location steps from UC Berkeley on Telegraph Avenue, ensuring high visibility and foot traffic.; High‑income potential with a **7.42% cap rate**.; Mixed‑use property with a vacant, fully equipped commercial restaurant space.
