3722-3744 3732-3744 Grand Ave - Mixed Use 7.23% Pro Forma Cap 15 Unit Apartment Building Offered at $2,600,000 at a 7.23% Cap Rate Oakland, CA 94610

A rare mixed-use hold on Oakland's Grand Avenue, priced at $2,600,000 with a 7.23% pro forma cap rate and clear, documented upside.
MKD 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.