Oakland Restaurant/Cafe
For Sale
$749,000
2818 Macarthur Blvd, Oakland, CA 94602
Turn-key restaurant/cafe with functioning hoods in Oakland's Diamond District.
Property Size988 SF
Price / SF$758.10
Days on Market186
Property Features for 2818 Macarthur Blvd
General Information
Standard status
Active
Size
988 SF
Property subtype
Commercial
Amenities
Corner
Off-Site Parking
Regular
Tile Flooring
Building Details
Year Built
1958
Listing Agency:
CRH GROUP INC.
(510) 978-1200
Listed By:
LOVEL MAGIDISH
Source:
Corcoran
Added: Feb 3
Changed: Aug 8
Last Checked: Aug 8 at 1:41PM
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 CRH GROUP INC.
Investment Insights
Based on property information with market context.
This stand-alone restaurant cafe is centrally located in Oakland's Diamond District. The property features a turn-key kitchen equipped with 3 functioning hoods. With a property size of 988 square feet, this space is suitable for opening a new restaurant or cafe. It could also serve as a prep location for a catering business. The building owners are willing to collaborate to support neighborhood growth. The seller is open to carrying a loan. Existing kitchen equipment can be kept or removed based on the new owner's needs.
Key Highlights
- Turn‑key kitchen with 3 functioning hoods, ready for immediate use.
- Centrally located in Oakland's Diamond District, offering high visibility.
- Ideal for restaurant, cafe, or catering business.
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
$21,963
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
2.93%
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%
$439,260
$439.3K
Cap Rate 7%
$313,757
$313.8K
Cap Rate 9%
$244,033
$244.0K
Market Conditions
NOI Build-Up for 988 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
$30.8K $31.20/SF
− Vacancy
−$1.5K −$1.56/SF
EGI
$29.3K $29.64/SF
− OpEx
−$7.3K −$7.41/SF
NOI
$22.0K $22.23/SF
Area
Oakland, CA
Vacancy
5.00%
Lease Rate
$31.20 /SF/Yr
Expense Ratio
25.00%
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%
$439,260
Cap Rate 7%
$313,757
Cap Rate 9%
$244,033
Alternative Uses
Best Use
Specialty Retail
$313.8K
$274.5K – $366.1K
NOI $21,963 @ 7.0% cap · market cap 2.93%
Second Best
Industrial
$172.7K
$151.1K – $201.5K
NOI $12,087 @ 7.0% cap · market cap 1.61%
Theoretical Best
Multifamily LT 5
$323.5K
$283.0K – $377.4K
NOI $22,643 @ 7.0% cap · market cap 3.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,165
Businesses Nearby
99k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 47%
Groceries 41%
Dining 11%
Electronics 1%
Safeway
Groceries
40,362 visits/mo
0.4 miles
Wells Fargo
Shops & Services
12,558 visits/mo
0.4 miles
Shell
Shops & Services
11,239 visits/mo
0.4 miles
7-Eleven
Shops & Services
11,176 visits/mo
0.2 miles
Peet's Coffee & Tea
Dining
8,209 visits/mo
0.4 miles
Demographics for 94602, CA
29,702
Population
13,072
Households
2.3
Avg Household Size
42
Median Age
58%
College-Educated
89%
High-School Grad
3.6 sq mi
ZIP Area
8,251
Density / Sq Mi
$124,744
Median Household Income
$65,401
Median Earnings
$1,924
Median Rent
$1,111,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Shaan Indian Cuisine — 3434 Fruitvale Ave, Oakland, CA 94602
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Turn-key restaurant/cafe with functioning hoods in Oakland's Diamond District.
Where is this conventional restaurant located?
The property is located at 2818 Macarthur Blvd Oakland, CA.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: Turn‑key kitchen with 3 functioning hoods, ready for immediate use.; Centrally located in Oakland's Diamond District, offering high visibility.; Ideal for restaurant, cafe, or catering business.
