Marcus & Millichap is pleased to present the exclusive opportunity to acquire 1848-1860 E 25th Street, a four-building 24-unit multifamily complex in the heart of Oakland. Located on a quiet dead-end street, the Redwood Crest Apartments sits atop a hill in the Highland Terrace neighborhood and offers residents proximity to all the essentials of Oakland without the hustle and bustle of Downtown. This gated apartment complex is less than five minutes to both I-580 and is within 10 minutes of two major BART stations.
Redwood Crest offers an attractive unit mix consisting entirely of large two-bedroom apartments. The property has strong rental upside with new units renting at a $500 premium to the current average rent. The loss-to-lease of nearly 23 percent allows an experienced investor to realize a $150,000 increase in Net Operating Income. The current owner has recently completed extensive interior renovations to approximately half of the units consisting of dual-pane windows, flooring, kitchen cabinets, appliances, and all new bathrooms.
Oakland is currently one of the strongest markets in the nation. With vacancy continuing to go down, the average effective rent in Oakland is now approaching $2,958. The area continues to attract younger families, particularly to the Highland Terrace neighborhood. The desirable two-bedroom unit mix adds additional value to the property and its expected rent. The East Bay only had 2,410 units completed last year and that number should continue to decrease as building costs continue to escalate. This will further tighten the available units and increase rental rates.
The astute investor who is looking for a secure location, excellent unit mix, strong rental upside, and current cash flow need look no further. Redwood Crest represents the rare opportunity to acquire quality real estate in an excellent location with additional upside.
