| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 73rd | Fair |
| Demographics | 89th | Best |
| Amenities | 95th | Best |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 1244 Hearst Ave, Berkeley, CA, 94702, US |
| Region / Metro | Berkeley |
| Year of Construction | 1973 |
| Units | 23 |
| Transaction Date | 2009-05-14 |
| Transaction Price | $3,325,000 |
| Buyer | NENE RANCH LLC |
| Seller | 1244 HEARST STREET LLC |
1244 Hearst Ave Berkeley Multifamily Investment
Strong neighborhood fundamentals in Berkeley suggest durable renter demand and above-average occupancy at the neighborhood level, according to WDSuite’s CRE market data. Elevated home values support sustained reliance on rentals, while income levels help underpin leasing stability for a 23-unit asset.
Situated in Berkeley’s Urban Core, the property benefits from a high-amenity setting and a deep renter base. The neighborhood ranks among the top tier of the Oakland-Berkeley-Livermore metro (7 of 469), signaling competitive positioning versus local peers. Nationally, amenity access sits in the top quartile, with grocery, cafes, parks, and pharmacies all testing well above national percentiles, which supports daily convenience and leasing appeal.
Neighborhood-level schools rate at the top of the metro (ranked 1 among 469) and the 100th percentile nationally, an attribute that typically supports retention for households prioritizing education. Median asking rents and incomes in the neighborhood both sit well above national averages, and five-year rent growth has been robust, per commercial real estate analysis from WDSuite. For investors, this combination points to pricing power tempered by the need for thoughtful lease management.
Tenure patterns indicate meaningful rental demand: the neighborhood shows a sizeable share of renter-occupied housing units, and demographic data aggregated within a 3-mile radius reflects an even higher renter concentration alongside rising household counts and incomes. This mix expands the prospective tenant pool and supports occupancy stability, though it also heightens expectations for unit quality and property management responsiveness.
Vintage matters: built in 1973, the asset is newer than the neighborhood’s older average stock (1940s era). That positioning can offer a competitive edge versus prewar buildings while still leaving room for targeted modernization to capture value-add upside and support rent growth relative to older comparables.
Ownership costs in the neighborhood are elevated (high national percentiles for home values and value-to-income), which tends to reinforce reliance on multifamily rentals and can bolster lease-up and renewal prospects. At the same time, rent-to-income metrics appear manageable for much of the local renter base, suggesting scope for measured rent increases where supported by improvements and unit quality.
Safety indicators for the neighborhood currently track below national norms, with both property and violent offense measures sitting in low national percentiles. Within the Oakland-Berkeley-Livermore metro context, this positions the area below metro averages on safety.
Investors should underwrite with prudent assumptions for security, lighting, and access controls, and weigh operating practices that support resident comfort. Monitoring trend direction and comparing to nearby competitive neighborhoods can help calibrate expectations for tenant retention and expenses.
Proximity to major Bay Area employers supports a diversified renter base seeking commute convenience to corporate offices. Nearby anchors include consumer goods, apparel, financial services, and technology firms that draw a steady professional workforce.
- Clorox — consumer goods (4.7 miles) — HQ
- Gap — apparel retail corporate (7.8 miles) — HQ
- Aig — financial services (7.9 miles)
- Salesforce.com — software (7.9 miles) — HQ
- Charles Schwab — financial services (7.9 miles) — HQ
1244 Hearst Ave is a 23-unit, 1973-vintage asset positioned in a top-performing Berkeley neighborhood where amenity access and school quality rank at the high end of both metro and national benchmarks. Elevated home values and high value-to-income ratios reinforce reliance on rentals, while neighborhood occupancy trends remain above national averages, based on CRE market data from WDSuite. The property’s mid-century vintage is newer than much of the surrounding stock, offering a path for targeted renovations to improve competitiveness against older assets.
Within a 3-mile radius, population and household counts have increased alongside rising incomes, expanding the renter pool and supporting leasing durability. Strong employer depth across Oakland and San Francisco underpins weekday demand and retention. Primary considerations include underwriting for security measures and capital planning appropriate for 1970s systems, balanced against the potential for value-add returns in a high-demand micro-market.
- High-amenity, top-tier Berkeley location with strong school ratings supporting retention
- Elevated home values reinforce sustained multifamily demand and pricing power
- 1973 vintage offers value-add potential versus older neighborhood stock
- Expanding 3-mile renter pool and strong employer base support occupancy stability
- Risks: safety indicators below national norms; plan for capex and security to protect NOI