The Booming Berkeley Real Estate Market

Welcome to Berkeley, California where passionate, genuine people come to live and thrive. Located in Alameda County, just across the Bay from San Francisco, Berkeley is one of a kind. 

Beautiful view of Berkeley Skyline, including Sather Tower, or Campanile, and International House, with San Francisco Bay in the background.

Berkeley is home to The University of California, Berkeley since 1868 and has since become a landmark city for human rights and free speech. The city also hosts beautiful nature sites from the Berkeley Marina to the hiking trails in Berkeley Hills. Not to mention, the city has a high walkability score, so it’s not surprising to see residents out and about, enjoying the beautiful Berkeley weather or strolling down Telegraph Avenue, famous for its eclectic small businesses and vibrant people. 

A simple ride of usually less than half an hour on the Bay Area Rapid Transit, or BART, would get you from Berkeley into the heart of San Francisco. Opportunities abound, as startups like Google, Apple, Netflix and Adobe reside in the surrounding Silicon Valley.

Downtown Oakland in the background; buildings in UC Berkeley in the foreground; San Francisco bay, California

Not only is Berkeley a thriving market for students, professors and university affiliates, but it is home to many families. There are 28 parks in Berkeley and a highly ranked public school system. 

The market is booming in Berkeley, as according to Redfin data, the median sale price in Berkeley has increased by 2.3% year-over-year, the number of homes sold increased by 4.9%, and the median days on market decreased by 3.3%. Berkeley is one of the strongest performing submarkets in the entire San Francisco Bay Area. As one of the strongest performing submarkets in the entire San Francisco Bay Area, Berkeley’s average sale price of multi-family properties has increased 138% over the last ten years.

This makes the city a clear seller’s market and as the city continues to grow at 36.3% over the next ten years, the market will only continue to bloom. The net rental cap rate in Berkeley for apartments often ranges between 5-6%, a high value for investment returns.

Bay view from the UC Berkeley Campus

There are a number of reasons why we decided to begin our acquisitions in Berkeley. First, we are located in San Francisco, which allows us to directly manage Berkeley properties. There are also the high rates of historical returns on real estate investments, good property conditions, and a looser rent regulations. The acquired properties also came with existing tenants, meaning dependable cash flow.

Meet the Berkeley Properties

Berkeley M1

Located just a block away from San Pablo Park in South Berkeley, Berkeley M1 was the first property acquired by Ark7. Berkeley M1 is a 5-unit, 10 bedroom, 5 bathroom property with 6 parking spaces. M1 is located at the center of almost every point of interest in the city. It is only 2 miles away from Downtown Berkeley and UC Berkeley’s campus and is less than a mile away from a BART station. It’s a colorful area, with restaurants, coffee shops and local fan-favorite grocery store Berkeley Bowl nearby. 

Berkeley M1 has a share price of $940, a cash distribution of 6.01%, an estimated rental income of more than 5%, and an expected return of 15.07%.

Berkeley M2

The second Berkeley location, M2, is situated closer to the water in South Berkeley with 6 units from 11 bedrooms, 6 bathrooms and 4 parking spaces. The majority of these units have a two bedroom floor plan, which is highly desired by college students and professionals. It is situated near important destinations such as Downtown Berkeley (1.6 miles away), and UC Berkeley (2 miles away) for easy walkability. It’s only 0.4-miles to the nearest BART train station, making it convenient to reach San Francisco and Silicon Valley.

Berkeley M2 has a share price of $890, a cash distribution of 6.06%, an estimated rental income of more than 5%, and an expected return of 15.12%. The rental income has been consistent and has had an almost zero vacancy rate, allowing for a higher cap rate than similar properties on the market. 

Berkeley M3

Located between Central and Southwest Berkeley, Berkeley M3 offers five units with 10 bedrooms and 6 bathrooms total. Each unit offers private backyards, making the property more desirable. It is around the corner from Bancroft Community Garden, only 1.1 miles away from Downtown Berkeley and 1.8 miles to campus. Berkeley M3’s share price is $28.50.

Berkeley M3 has a cash distribution of 6.09%, an estimated rental income of more than 4.73%, and an expected return of 15.15%.

Choose which properties you want to invest in, and let Ark7 do the heavy lifting of management. Create an account at Ark7 now to start investing in these Berkeley properties and other deals. Begin building your fractional investment portfolio today with Ark7. 

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