Apartment building investing in the city of Alameda
Alameda has a population of about 72,000 and is a great place to live and work. It’s also a fantastic place to purchase income producing property such as apartment buildings. Whether it’s a small duplex, 4-plex or large multi-family apartment building, Alameda represents one of the best commercial real estate markets in the San Francisco Bay Area.
Not only do we have fantastic weather here, but the Schools and amenities in Alameda are hard to beat. I moved my family here from San Francisco along with many new residents who wanted better schools and a higher quality of life.
The median home price in Alameda is nearly $700,000 which is quite high, but still represents a fantastic value when compared to San Francisco real estate prices. It was also surprising to find that Alameda (lovingly referred to as the island city) is such an incredibly diverse community, even more so than San Francisco.
Living in Alameda is simple, quiet and interesting. We have Trader Joe’s, Pete’s coffee, Tuckers Ice Cream, Toy Safari and Nob Hill Foods, creating the perfect combination of reliable large business’s and family run one-of- a-kind stores. Oh yeah, and Alameda is only 20 minutes from the city.
Owning real estate in Alameda has proven to be a wise investment. Even with the fiscal crisis Alameda real estate has held its value better than most other neighboring cities. It’s easy to see why. The strong community here has pulled together to pass parcel taxes and is wrestling to keep a balance between affordable taxes and high quality education. There is a strong sense of community in Alameda and it’s very safe for families and children.
Real Estate prices remain elevated in Alameda and cap rates are lower than in Berkeley, Oakland or San Leandro. In fact the Alameda apartment building market is extremely tight with only 2 large buildings currently on the market. Recently a very small 1 bedroom duplex went into contract in the Fernside neighborhood for nearly $700k. It was surprising even to me.
Many investors who live and own property in Alameda will simply not look anywhere else for purchasing real estate. And why would they, after seeing their property values appreciate substantially over the past decade and stay stable even through the worst economic disaster in a generation, Alameda apartment owners have a lot to be happy about. One reason for this is that there is no rent control in Alameda. This helps keep rents higher and allows landlords to respond quickly to economic trends and avoid excess legal costs.
The rental market in Alameda is very strong. The average price for a 1 bedroom apartment in Alameda is about $1075/mo, nearly 10% higher than comparable Oakland rentals. It is easy to see why investors covet Alameda as a safe place to invest their money.
Speaking of safety, the city of Alameda has a phenomenal police force which keeps the streets clean and crime down. With one of the lowest crime rates in the San Francisco Bay Area, Alamedan’s can safely let their kids play, bike and enjoy one of the many pools or parks.
About the author: As a multi-family investment expert and Alameda resident, Nick Myerhoff advises investors on their apartment building portfolios. When working with prospective investors, Nick reviews all their goals whether it’s long term wealth building through real estate, leverage, tax advantages or simply a desire to diversify holdings, Nick Myerhoff studies real estate market trends and analyzes real estate date to provide the best most accurate information to his clients.
To schedule a personal meeting with Nick Myerhoff to discuss purchasing or selling your apartment building, or to discuss the commercial real estate investment opportunities in your area please contact him at email@example.com or call 415-812-4450.