CASTLE CRAIG | 27 Units | Steps From Cal 2525 Durant Ave 27 Unit Apartment Building $11,027,768 CAD ($408,436 CAD/Unit) 5.86% Cap Rate Berkeley, CA 94704

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The Cushman & Wakefield Northern California Capital Markets Group is pleased to present The Castle Craig Apartments, a distinguished 27-unit multifamily asset located in an irreplaceable location at 2525 Durant Avenue in the highly sought-after Southside neighborhood of Berkeley, CA. Built in 1928, this 17,802-square-foot property boasts classic architectural character and presents a prime investment opportunity just steps away from the world-renowned UC Berkeley campus. Offered for the first time in more than 50 years, The Leroy Apartments represents a truly unique chance to secure a generational multifamily investment in one of the Bay Area's most dynamic rental markets.
The property’s unit mix consists of 13 studios, 12 one-bedroom units, and 2 two-bedroom units, catering to a diverse range of tenants, including UC Berkeley students, faculty, and local professionals seeking direct adjacency to UC Berkeley. Currently, 10 units are vacant,
providing immediate value-add potential for an investor to implement property upgrades and implement a modern purpose-driven student housing operation.
Castle Craig is offered at an attractive asking price of $7,900,000 ($292,593 per unit), with a stabilized cap rate of 5.86% and a proforma cap rate of 6.86%. The property’s stabilized rents average $2,506 per unit, while market rents average $2,785. This spread highlights strong rent growth trends and provides meaningful upside potential through repositioning and lease-up of the vacant units.
Operationally, the property is well-positioned for continued demand, featuring individually metered electricity, while the landlord is responsible for water, gas, sewer, and waste services. Each unit benefits from on-site card-operated laundry facilities, enhancing the
property’s appeal to the predominantly student renter demographic.
Located in a highly walkable area with a Walk Score of 97 and Bike Score of 89, Castle Craig offers excellent accessibility to UC Berkeley, major bus lines, and the BART system. The property’s proximity to Telegraph Avenue, Berkeley’s main commercial corridor, provides residents with convenient access to a wide range of retail and dining options.
Demand for centrally located, well-amenitized housing in Berkeley’s supply-constrained Southside submarket remains strong, driven by UC Berkeley’s ongoing bed shortage and consistent population growth. Rent growth in the area has increased by 25% over the past 10 years, and is projected to exceed 23% through 2035. This, combined with the Castle Craig's classic construction, irreplaceable location, high current vacancy, and significant rent upside, makes the Property an exceptional opportunity for investors seeking both stable in-place income and long-term capital appreciation.
The property may be purchased individually or as a 3 property, 68-unit portfolio with The Keystone Apartments (2419 Durant Ave - 32 Units) and The Leroy Apartments (2411 Durant Ave - 9 Units).