2011 7th Ave, Oakland, CA, USA

The Opportunity

The vacant 6-unit apartment represents an outstanding opportunity for investors to acquire a rehab property with enormous upside potential located in the Clinton neighborhood of Oakland, California. The complex is owned and maintained by the California Affordable Housing Initiatives, Inc.

Property Summary

Constructed in 1960, the property consists of a 3-story, 6-unit, Class C quality apartment building, with a gross building area of ± 6,870 square feet. The site area is ± 5,829 square feet. The apartment units are all 3 bedroom/1 bath flats, averaging approximately ±1,024 square feet each. There are 6 on-site open parking spaces (1 space/unit). The overall building structure is of average quality wood-frame construction, in fair condition and needs repairs to be habitable.

General Market Conditions

The rental housing market in Oakland is currently very strong. Average rents have increased by roughly 10% per year over the past couple of years, while market vacancy is generally around 5% (based on 1Q/2015 stats by Marcus & Millichap). Rental demand will continue as renters are priced out of areas such as San Francisco and Silicon Valley and are seeking more affordable housing options, while still remain close to public transit and urban amenities. Similarly, investors who are seeking greater yield opportunities are looking to Oakland and other East Bay markets. Cap rates are reported to be in the low-5% range and may continue to decline.

Subject Marketability

There is very strong investor demand for multifamily properties in Oakland. In particular, the property would be attractive to value-add investors, but also to more experienced residential income investors who are willing to renovate the building. Overall, the property is considered to be highly marketable given its relatively desirable location and the current positive market conditions.

Additional investment highlights include:

• Rehab opportunity, priced below market value
• High demand rental market
• Premiere Bay Area location

Investors have the opportunity to enhance value by repairing the property and securing market-rate tenants. The property is well-positioned to benefit from the rising housing costs in the Oakland as well as the inability of many to own. Overall, the property represents a tremendous investment opportunity for both short- and long-term growth.