Updated Apartment
New
For Sale
$2,295,000
550 Fairmount Ave, Oakland, CA 94611
Three-story multifamily property with eight renovated units, covered parking, and access to Grand Lake retail and transit.
Property Size6,632 SF
Days on Market6
Property Features for 550 Fairmount Ave
General Information
Standard status
Active
Size
6,632 SF
Property subtype
5 or More Units
Building Details
Building Size
6,632 SF
Year Built
1963
Listing Agency:
COMPASS
Listed By:
Willem Bos · License #02013980
(916) 698-9954
Source:
Annnewtoncane
Added: Sep 16
Changed: Sep 18
Last Checked: Sep 20 at 9:36AM
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.
This three-story apartment building, constructed in 1963, contains 10 units totaling 6,632 square feet on a 6,900-square-foot lot. The unit mix includes six 1BR/1BA apartments and four 2BR/1BA apartments, with eight residences already updated. Covered off-street parking provides five spaces and an additional income component.
Located at 550 Fairmount Ave in Oakland’s Grand Lake neighborhood, the property is near the Grand Avenue and Lakeshore retail corridors, Grand Lake Theatre, and Lake Merritt. MacArthur BART is one mile away, while immediate I-580 access connects the property with downtown Oakland and San Francisco.
The offering includes current 7.0% CAP and 9.3 GRM metrics, with a stated 10.1% CAP projected as units turn to market. Existing tenancies include occupancy dating to 2006, creating a defined rent-reset opportunity as apartments become available.
Located at 550 Fairmount Ave in Oakland’s Grand Lake neighborhood, the property is near the Grand Avenue and Lakeshore retail corridors, Grand Lake Theatre, and Lake Merritt. MacArthur BART is one mile away, while immediate I-580 access connects the property with downtown Oakland and San Francisco.
The offering includes current 7.0% CAP and 9.3 GRM metrics, with a stated 10.1% CAP projected as units turn to market. Existing tenancies include occupancy dating to 2006, creating a defined rent-reset opportunity as apartments become available.
Key Highlights
- 10‑unit apartment building with six 1BR/1BA and four 2BR/1BA units
- 6,632 SF building on a 6,900 SF lot
- Eight of 10 units have been updated
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
$113,219
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
4.93%
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%
$2,264,380
$2.3M
Cap Rate 7%
$1,617,414
$1.6M
Cap Rate 9%
$1,257,989
$1.3M
Market Conditions
NOI Build-Up for 6,632 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
$214.9K $32.40/SF
− Vacancy
−$9.0K −$1.36/SF
EGI
$205.9K $31.04/SF
− OpEx
−$92.6K −$13.97/SF
NOI
$113.2K $17.07/SF
Area
ZIP 94611
Vacancy
4.20%
Lease Rate
$32.40 /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%
$2,264,380
Cap Rate 7%
$1,617,414
Cap Rate 9%
$1,257,989
Alternative Uses
Best Use
Apartment 5plus
$1.62M
$1.42M – $1.89M
NOI $113,219 @ 7.0% cap · market cap 4.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.79M
$2.44M – $3.26M
NOI $195,564 @ 7.0% cap · market cap 8.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
6,619
Businesses Nearby
Explore this area
Business Placement
Demographics for 94611, CA
40,262
Population
19,014
Households
2.1
Avg Household Size
44
Median Age
78%
College-Educated
97%
High-School Grad
7.3 sq mi
ZIP Area
5,515
Density / Sq Mi
$176,517
Median Household Income
$105,393
Median Earnings
$2,274
Median Rent
$1,485,000
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 - Three-story multifamily property with eight renovated units, covered parking, and access to Grand Lake retail and transit.
Where is this apartment building located?
The property is located at 550 Fairmount Ave Oakland, CA.
What is the asking price?
The asking price for this property is $2,295,000.
What are key features of this property?
This property features: 10‑unit apartment building with six 1BR/1BA and four 2BR/1BA units; 6,632 SF building on a 6,900 SF lot; Eight of 10 units have been updated
