The East Bay multifamily market continues to show strength as we move deeper into summer, with active buyer demand and positive signals on interest rates.
Coming Soon: Five-Unit Property Near Grand Avenue
A five-unit apartment building located just two blocks from Grand Avenue—within walking distance to Safeway, shopping, and restaurants—will be coming to market within the next 30 days.
The property is expected to be priced around a 5.7% cap rate. If you have any interest or would like additional details ahead of the public listing, please feel free to reach out.
This will be my third listing since May, and one thing remains consistent: when a property is priced correctly and located in a desirable area, buyer interest is strong. I continue to meet with buyers who are actively looking to purchase multi-unit buildings in the East Bay.
Recent Off-Market Transaction: Rockridge Fourplex
Below are details from a recent off-market fourplex that highlights current market demand and rental performance.
This was a rare opportunity to own a fourplex in one of the most desirable areas of the East Bay—just half a block from Rockridge BART and Market Hall.
Key highlights:
- Over $11,800 in gross monthly rent
- Listing price: $1,649,000
- Current cap rate: 5.6%
- Market cap rate: 6.3%
- Current GRM: 11.6
- Market GRM: 10.7
Update:
The new owners hired a strong property management team and were able to lease all three vacant units within 2–3 weeks. The two-bedroom units rented for an average of $3,195 per month, further validating rental demand in prime locations.
You can view listing details here: 328 Forest Street Fourplex
For more information on recent listings, sales, and previous market updates, visit East Bay Apartment Advisors.
Current Market Valuations
The Federal Reserve has indicated that two interest rate cuts are expected later this year. After an extended period of higher interest rates, buyers and sellers are now largely aligned on market valuations.
Once the timing of rate cuts is officially announced, we expect to see increased transaction activity. Historically, as mortgage rates decline, buyers are willing to pay slightly more due to improved cash flow and lower monthly payments.
Sellers continue to receive strong offers for properties that:
- Are in good locations
- Have stable rental income
- Show little to no deferred maintenance
Outlook for East Bay Rents
The rental market is warming up across the East Bay. Conversations with local property management companies confirm that demand is improving.
Many Bay Area employers are continuing return-to-office or hybrid work policies, which supports rental demand. At the same time, new apartment construction has slowed significantly. Reduced supply should lead to increased interest in available units and help maintain low vacancy rates as we move through the summer.
If you’re having difficulty filling a vacancy or have questions about pricing strategy, feel free to reach out. In many cases, offering a temporary rent concession is more effective than permanently lowering rent—for both new and existing tenants.
Current Sales Market
If you’re considering selling in the next 6–12 months, now is a good time to begin planning. Buyers are still underwriting deals based on income levels similar to pre-COVID conditions, and well-marketed properties are selling efficiently.
A common question sellers ask is how to defer capital gains taxes. Two common strategies include:
- Delaware Statutory Trusts (DST)
- 1031 Tax-Deferred Exchanges
I also recently presented on increasing rental revenue at the East Bay Rental Housing Association. You can view highlights here: Maximizing the Return on Your Investment.
Earlier this spring, a fourplex in Oakland went into contract at list price with a short closing and no issues—another example of how proper pricing and full marketing deliver strong results.
Guidance Matters
If you’re thinking about selling your apartment building, I can assist with valuation, strategy, and guidance throughout the process.
I’m also in contact with two of the top East Bay multi-unit lenders who are actively closing transactions. Buyers with solid down payments can still secure financing, and I can help navigate the process from start to finish.
Experienced representation makes a difference. Comprehensive marketing—across listing platforms, broker networks, and targeted email campaigns—can expose your property to tens of thousands of qualified buyers.
Looking forward to a strong Summer 2025.
If you have questions, want an evaluation, or would like to discuss opportunities, feel free to reach out anytime.