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Listed by Mark R Chow Compass
$ 2,600,000
Est. payment | /mo
12,920 SqFt
$ 2,600,000
Est. payment | /mo
12,920 SqFt
Key Details
Property Type Commercial
Sub Type Mixed Use
Listing Status Active
Purchase Type For Sale
Square Footage 12,920 sqft
Price per Sqft $201
MLS Listing ID 426155250
HOA Y/N No
Year Built 1952
Lot Size 0.294 Acres
Acres 0.2938
Property Sub-Type Mixed Use
New Construction No
Property Description
The Markchow Group is pleased to present 3732-3744 Grand Avenue, a 15-unit mixed-use investment property on one of Oakland's most walkable, most established commercial corridors. Nine residential units sit above six ground-floor storefronts just steps from the shore of Lake Merritt, the historic Grand Lake Theater, and the beloved Saturday Grand Lake Farmers Market the kind of address that keeps both tenants and retail traffic coming back, and the kind of demand driver that shows up directly in the numbers below. Priced at $2,600,000 ($173,333 per unit), the property is currently 80% occupied, generating $219,363 in current gross income against a 5.39% in-place cap rate. The upside is immediate and documented: two vacant residential units and one vacant commercial space are ready for lease-up at rents supported by leases recently signed within the building itself on Grand Avenue's own retail corridor, where commercial tenants have consistently renewed at the terms this pro forma assumes. Layering in that lease-up alone brings net operating income to $187,860, a 7.23% pro forma cap rate and 9.6x gross rent multiplier at asking. Beyond the vacant units, long-term residential tenancies dating back more than a decade sit well below current market rents a below-market gap that converts to value at turnover under California's vacancy decontrol provisions, in a neighborhood where rents have consistently kept pace with the corridor's popularity. For a leveraged buyer, illustrative underwriting (65% LTV, 6.75% fixed) points to a stabilized debt yield above 11% and a five-year levered return in the mid-teens IRR, before crediting any of that loss-to-lease upside. What makes the opportunity work is how tightly the location and the financials reinforce each other. This isn't a commodity income stream propped up by a single national tenant or a single asset class it's nine residential units and six commercial storefronts, diversified by design, anchored to a corridor with structural, multi-generational demand from Grand Lake, Adams Point, and Piedmont-adjacent renters and shoppers alike, and an I-580 commute corridor that keeps the neighborhood filled. At $173,333 per unit, on a corridor where comparable product rarely trades, 3732-3744 Grand Avenue offers a rare combination: a defensible location and a pro forma that gets there without relying on speculative rent growth.
Location
State CA
County Alameda
Area Oakland Zip 94610
Zoning D-LM-2 and S-8
Interior
Fireplace No
Exterior
Total Parking Spaces 26
Building
Story 2
Level or Stories See Remarks
New Construction No
Others
Tax ID 11853231
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