We’ve been in a strong real estate market for several years and this summer we’re seeing rents and resale prices higher than ever before. The 2007 recession has diminished in our collective rear view mirror. So what is next? An important task property owners should take on now is to observe where their property’s market and sub-market has been recently and where it may be headed. For example, while the Oakland multifamily market has been booming for several years, the Berkeley market near UC campus was moving powerfully ahead even in the depths of the recession. And the Fairfield market is just now hitting the level of rental demand that we saw prior to 2007. At what stage is your market? For example, if you own property in the Fruitvale district of Oakland, you are now seeing simultaneously strengthened rental demand and dramatically increased resale value for a given rent—a powerful combination for an area that has been historically slow to pick up during each recovery cycle!

If you sold a $2MM, 6-unit property beside Lake Merritt in Oakland today on which you had a $1MM loan and were receiving an annual cash flow of $45,000, you could purchase the $4MM property I have listed at 307 E Tabor in Fairfield and have a cash flow of well over $100,000 per year. That is more than double the cash flow for a two-part transaction we can facilitate with confidence.

You can get from Downtown Oakland to Downtown San Francisco in 11 minutes by BART. If you were a renter looking for a place, would you consider Cole Valley in San Francisco, 35-45 minutes by Muni from downtown? Or would you first take a hard look at Downtown or Uptown Oakland, 11 and 13 minutes from San Francisco by BART? These areas of Oakland are full of daytime and nighttime activities (and job opportunities) and are three times “closer,” in travel time, to Downtown San Francisco than most of San Francisco itself. This is one major reason Oakland is doing well right now.

The Kent Mitchell Team has recently closed several Multifamily, Office/Retail and Mixed Use buildings. Call Kent today for an estimate of value: 510-548-2554.