Berkeley Mixed-Use Investment
For Sale
$1,599,000
2917 Telegraph Ave, Berkeley, CA 94705
Mixed-use property in vibrant Claremont Elmwood neighborhood, Berkeley.
Property Size2,888 SF
Lot Size0.14 Acres
Price / SF$553.67
Days on Market166
Property Features for 2917 Telegraph Ave
General Information
Standard status
Active
Size
2,888 SF
Lot size
0.14 Acres
Property subtype
Commercial
Amenities
Common Garage
Building Details
Year Built
1937
Listing Agency:
COMPASS
(925) 257-0305
Listed By:
JEFFERY WONG
Source:
Corcoran
Added: Feb 23
Changed: Aug 8
Last Checked: Aug 8 at 6:09AM
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
Investment Insights
Based on property information with market context.
Located on a well-trafficked commercial corridor in Berkeley, the property at 2917 Telegraph Ave presents a commercial real estate opportunity in the Claremont Elmwood neighborhood. Constructed in 1937, this property includes approximately 1,275 square feet of commercial storefront space divided into two units, along with a 1,613-square-foot residential home featuring three bedrooms and two bathrooms. The building is situated on a 6,187 square foot lot, providing visibility and street presence along a key urban retail and services artery. The location is near neighborhood shops, eateries, and professional services, including UCSF Benioff medical offices. Telegraph Avenue is known for its atmosphere and pedestrian traffic, making it suitable for retail, office, service-oriented concepts, or creative adaptive reuse. The property offers live/work possibilities. It is located minutes from the 580 Freeway (1.8 miles, 5 min), Hwy 24 (1.6 miles, 4 min), shopping (Whole Foods, 0.1 miles, 2 min walk), and the UC Berkeley campus (1.4 miles, 3 min). The surrounding area includes community activity, cultural destinations, independent businesses, and accessible transit.
Key Highlights
- Prime location on Telegraph Avenue in the Claremont Elmwood neighborhood, offering high visibility and foot traffic.
- Mixed‑use property featuring a commercial storefront (approx. 1,275 SF) and residential space (approx. 1,613 SF, 3bd/2ba).
- Large 6,187 sq ft lot provides flexibility.
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
$67,319
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
4.21%
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%
$1,346,380
$1.3M
Cap Rate 7%
$961,700
$961.7K
Cap Rate 9%
$747,989
$748.0K
Market Conditions
NOI Build-Up for 2,888 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
$104.0K $36.00/SF
− Vacancy
−$7.8K −$2.70/SF
EGI
$96.2K $33.30/SF
− OpEx
−$28.9K −$9.99/SF
NOI
$67.3K $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%
$1,346,380
Cap Rate 7%
$961,700
Cap Rate 9%
$747,989
Alternative Uses
Best Use
Retail
$961.7K
$841.5K – $1.12M
NOI $67,319 @ 7.0% cap · market cap 4.21%
Second Best
Mixed Use
$768.6K
$672.5K – $896.7K
NOI $53,803 @ 7.0% cap · market cap 3.36%
Theoretical Best
Specialty Retail
$1.12M
$977.3K – $1.30M
NOI $78,184 @ 7.0% cap · market cap 4.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,167
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property in vibrant Claremont Elmwood neighborhood, Berkeley.
Where is this mixed-use property located?
The property is located at 2917 Telegraph Ave Berkeley, CA.
What is the asking price?
The asking price for this property is $1,599,000.
What are key features of this property?
This property features: Prime location on Telegraph Avenue in the Claremont Elmwood neighborhood, offering high visibility and foot traffic.; Mixed‑use property featuring a commercial storefront (approx. 1,275 SF) and residential space (approx. 1,613 SF, 3bd/2ba).; Large 6,187 sq ft lot provides flexibility.
