2801 College Ave, Berkeley, CA 94705

2801 College Ave is a classic 1957-built multifamily property situated in Berkeley, offering a compelling investment opportunity. The 10,358-square-foot building consists of twenty-one units—featuring a mix of studios, 1-bedroom/1-bathroom, and 2-bedroom/1-bathroom layouts—and includes two driveway parking spaces. Offered at a competitive list price of $4,388,000, the asset presents an attractive entry point into the market. This pricing translates to an appealing $208,952 per unit and $423.63 per square foot, providing a solid foundation for long-term equity growth in a highly desirable real estate landscape.

From a financial perspective, the property exhibits exceptional upside potential with current monthly rents of $38,775 sitting notably below the projected market value of $44,365. At the current list price, the asset operates at a 6.29% capitalization rate and a 9.43 Gross Rent Multiplier (GRM). By gradually capturing market rents, an investor can dramatically increase returns to a projected 7.71% cap rate and an 8.24 GRM, highlighting the lucrative value-add nature of this asset.

The building currently boasts 86% occupancy, reflecting strong baseline tenant demand for this specific area while providing an immediate opportunity to lease vacant units for added yield. Located on College Ave in Berkeley, the property is zoned RM and benefits from individually metered gas and electric utilities, streamlining operating expenses for the landlord. This ideal combination of value-add occupancy potential and a prime location ensures high desirability for future leasing and sustained tenant retention.