Two-Building Apartment
For Sale
$1,199,000
764 40th Street, Oakland, CA 94609
Multifamily asset in Temescal with two structures, RM-4 zoning, and substantial storage beneath the detached residence.
Property Size3,622 SF
Price / SF$331.03
Days on Market24
Property Features for 764 40th Street
General Information
Standard status
Active
Size
3,622 SF
Property subtype
Multi Family
Units
Unit Mix
2 x studio, 2 x 1BR/1BA, 2 x 2BR/1BA
Multifamily Units
6
Building Details
Year Built
1918
Buildings
2
Listing Agency:
Luxmore Real Estate
(925) 899-3985
Listed By:
Travis Raciti · License #02246639
(925) 899-3985
Source:
Exitrealty
Added: Aug 8
Changed: Aug 28
Last Checked: Aug 31 at 2:14PM
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 Luxmore Real Estate
Investment Insights
Based on property information with market context.
This multifamily property consists of two buildings on one parcel in Oakland’s Temescal area. The improvements include an apartment building and a separate two-bedroom, one-bath residence. The property was built in 1918 and is zoned RM-4.
The residence includes 1,200 square feet of storage space below the living area, providing a distinct secondary component within the property. The address is 764 40th Street, Oakland, California 94609.
The residence includes 1,200 square feet of storage space below the living area, providing a distinct secondary component within the property. The address is 764 40th Street, Oakland, California 94609.
Key Highlights
- Two buildings situated on one parcel
- RM‑4 zoning
- Separate two‑bedroom, one‑bath residence
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
$76,479
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
6.38%
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%
$1,529,580
$1.5M
Cap Rate 7%
$1,092,557
$1.1M
Cap Rate 9%
$849,767
$849.8K
Market Conditions
NOI Build-Up for 3,622 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
$145.6K $40.20/SF
− Vacancy
−$6.6K −$1.81/SF
EGI
$139.1K $38.39/SF
− OpEx
−$62.6K −$17.28/SF
NOI
$76.5K $21.12/SF
Area
Oakland, CA
Vacancy
4.50%
Lease Rate
$40.20 /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%
$1,529,580
Cap Rate 7%
$1,092,557
Cap Rate 9%
$849,767
Alternative Uses
Best Use
Apartment 5plus
$1.09M
$956.0K – $1.27M
NOI $76,479 @ 7.0% cap · market cap 6.38%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$1.19M
$1.04M – $1.38M
NOI $83,008 @ 7.0% cap · market cap 6.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
6
Residential units
Location Intelligence
Trade Area within ½ mile
5,867
Businesses Nearby
Explore this area
Business Placement
Demographics for 94609, CA
23,578
Population
11,915
Households
2
Avg Household Size
36
Median Age
62%
College-Educated
95%
High-School Grad
1.7 sq mi
ZIP Area
13,869
Density / Sq Mi
$106,698
Median Household Income
$69,221
Median Earnings
$2,116
Median Rent
$1,147,900
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 - Multifamily asset in Temescal with two structures, RM-4 zoning, and substantial storage beneath the detached residence.
Where is this apartment building located?
The property is located at 764 40th Street Oakland, CA.
What is the asking price?
The asking price for this property is $1,199,000.
What are key features of this property?
This property features: Two buildings situated on one parcel; RM‑4 zoning; Separate two‑bedroom, one‑bath residence
