Oakland's urban landscape is defined by mixed-use properties. From the ground-floor restaurants and upper-floor apartments along Telegraph Avenue in Temescal to the waterfront live-work-play developments at Brooklyn Basin, mixed-use buildings represent one of the city's most active investment categories. Oakland's eight BART stations, walkable commercial corridors, and progressive zoning that encourages mixed-use development create a natural environment for these versatile properties. With commercial mortgage rates starting at approximately 5.18% and multiple loan programs available for different mixed-use configurations, Oakland investors have access to financing solutions that reflect the unique economics of combining residential, retail, office, and other uses within a single asset. This guide covers everything you need to know about mixed-use financing in Oakland.
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What Are the Current Mixed-Use Loan Rates in Oakland?
As of early 2026, mixed-use loan rates in Oakland depend on the property's use composition, occupancy, and the financing program selected. The range spans from approximately 5.0% for agency multifamily financing on residential-dominant properties to 12% for bridge loans on transitional mixed-use assets.
Agency loans (Fannie Mae and Freddie Mac) offer the most competitive mixed-use rates when the property is predominantly residential. Fannie Mae's program allows up to 20% to 35% commercial space by area, depending on the specific product, with rates in the 5.0% to 5.75% range, up to 80% LTV, and non-recourse execution. This makes agency financing the preferred option for Oakland's many apartment buildings with ground-floor retail or office.
CMBS loans serve mixed-use properties with larger commercial components at rates from approximately 5.5% to 7.0%, offering non-recourse financing with up to 75% LTV. These loans work well for properties where commercial space exceeds agency thresholds or where the commercial income is a significant portion of total NOI.
SBA 504 loans are powerful for owner-occupant mixed-use properties where the borrower occupies at least 51% of the commercial space. With up to 90% LTV and below-market fixed rates for 25 years, the SBA 504 program allows Oakland business owners to purchase mixed-use buildings that include their own business space along with rental income from other tenants.
DSCR loans at rates from roughly 6.0% to 8.5% allow mixed-use investors to qualify based on the property's combined rental income, eliminating the need for personal income documentation. Bridge loans at approximately 7.5% to 12.0% serve mixed-use properties undergoing renovation, tenant replacement, or repositioning.
Why Is Oakland Particularly Well-Suited for Mixed-Use Investment?
Oakland's physical, economic, and regulatory landscape creates an unusually favorable environment for mixed-use real estate investment, and lenders recognize these structural advantages in their underwriting.
Transit Infrastructure: Oakland's eight BART stations create nodes of concentrated development and tenant demand that naturally support mixed-use properties. Residents value the ability to walk to transit while having ground-floor retail and services at their doorstep. The Mandela Station project at West Oakland BART is delivering approximately 762 residential units with 53,000 square feet of retail, a quintessential transit-oriented mixed-use development. Similar patterns play out at the MacArthur, Fruitvale, and Lake Merritt stations.
Walkable Commercial Corridors: Oakland's established commercial streets, including Telegraph Avenue through Temescal, Grand Avenue near Lake Merritt, International Boulevard in Fruitvale, and Broadway through Uptown, are lined with mixed-use buildings that combine ground-floor commercial with upper-floor residential. These corridors have the foot traffic, transit access, and neighborhood character that support both commercial tenants and residential demand.
Zoning and Policy Support: Oakland's general plan and zoning code actively encourage mixed-use development along transit corridors and in designated commercial zones. This policy support reduces entitlement risk for new mixed-use projects and provides existing mixed-use property owners with confidence that their investment is aligned with the city's long-term development vision.
Diversified Income Streams: Mixed-use properties in Oakland benefit from combining residential rental income, which is generally more stable and predictable, with commercial income from retail, restaurant, and office tenants. This diversification reduces overall risk and appeals to lenders, who can underwrite a more resilient income profile than single-use properties.
Brooklyn Basin as a Model: The 65-acre Brooklyn Basin waterfront development is delivering approximately 3,100 residential units alongside 200,000 square feet of retail, 30 acres of parks, and a private transit shuttle connecting to Jack London Square and BART. This institutional-scale mixed-use project demonstrates the depth of capital available for Oakland's mixed-use market.
Which Oakland Neighborhoods Are Best for Mixed-Use Investment?
Mixed-use investment opportunities in Oakland span multiple neighborhoods, each with distinct characteristics that affect financing.
Temescal (Telegraph Avenue) offers Oakland's premier mixed-use investment environment. The corridor's acclaimed restaurant scene, boutique retail, and strong residential demand create a dynamic where ground-floor commercial and upper-floor residential reinforce each other. Mixed-use properties here command premium rents for both components, and lenders view Temescal as among Oakland's most financeable mixed-use locations. Proximity to the MacArthur BART station adds a transit premium.
Uptown and Lake Merritt combine nightlife, dining, arts venues, and professional services with a growing residential base. Mixed-use buildings along Broadway and near the 19th Street BART station benefit from both daytime and evening foot traffic. The area's cultural vibrancy attracts both creative tenants and young professionals seeking walkable urban living.
Jack London Square and the Waterfront offer a mixed-use environment combining restaurants, entertainment, offices, and residential uses along the Oakland Estuary. The ferry terminal provides direct water transit to San Francisco. The potential Howard Terminal redevelopment, where the Oakland Roots are among finalists for a stadium and mixed-use project on the 55-acre site, could significantly expand the mixed-use inventory in this waterfront district.
Grand Avenue and Lakeshore serve affluent Lake Merritt neighborhoods with a corridor of restaurants, cafes, boutiques, and services anchoring ground-floor retail while residential units fill upper floors. Mixed-use properties here benefit from high household incomes, strong foot traffic, and proximity to Lake Merritt's recreational amenities.
Fruitvale anchors its mixed-use investment around the successful Fruitvale Transit Village adjacent to BART, which combines residential, retail, and community services. The corridor along International Boulevard features numerous mixed-use buildings serving the neighborhood's culturally rich and densely populated community.
West Oakland is experiencing the most transformative mixed-use development in the city through the Mandela Station project at BART. The combination of a 31-story residential tower, a 7-story affordable housing building, and 53,000 square feet of ground-floor retail represents a new-generation mixed-use TOD that will anchor the neighborhood's commercial future. Opportunity Zone designations provide tax advantages for investors.
How Do Lenders Evaluate Mixed-Use Properties in Oakland?
Mixed-use lending requires evaluating multiple income streams and use types within a single property, and lenders apply specific frameworks to navigate this complexity.
Use Composition: The ratio of residential to commercial space determines which loan programs are available. Properties with 65% or more residential area (by square footage) may qualify for agency financing at the most competitive rates. Properties with larger commercial components typically require CMBS, bank, or portfolio lending. Lenders evaluate each component's income and risk profile separately before combining them into an overall property assessment.
Income Reliability by Component: Residential income is generally viewed as more stable and predictable, while commercial income offers higher per-square-foot yields but greater variability. A mixed-use property with strong residential occupancy provides a floor of income that supports the overall debt, even if commercial tenancy fluctuates. Lenders weight the residential component more favorably in their risk assessment.
Tenant Mix and Lease Structure: The commercial component's tenant mix matters significantly. Essential retail (grocery, pharmacy, medical), restaurants with proven track records, and professional services tenants are viewed most favorably. Single-tenant commercial exposure in a mixed-use building creates concentration risk that lenders address with more conservative underwriting. Staggered lease expirations reduce rollover risk.
Location and Transit Access: Oakland mixed-use properties near BART stations receive favorable underwriting treatment due to the transit premium that supports both residential and commercial demand. Properties within a quarter-mile of BART typically achieve lower vacancy and higher rents, which directly improves the DSCR calculation that lenders use to size loans.
Physical Condition and Systems: Lenders evaluate whether building systems (HVAC, plumbing, electrical, roof) adequately serve both residential and commercial functions. Mixed-use properties often have different system requirements for each component, and deferred maintenance that affects habitability or commercial operations can trigger reserve requirements or reduced leverage.
What Loan Programs Work Best for Oakland Mixed-Use Properties?
The optimal financing program depends on the property's use mix, your ownership status (investor vs. owner-occupant), and the property's condition.
Fannie Mae and Freddie Mac offer the best rates (5.0% to 5.75%) for residential-dominant mixed-use properties. Fannie Mae's standard program allows up to 20% commercial area with standard underwriting, and the Small Mortgage Loan program may allow up to 35% commercial for smaller properties. Non-recourse execution, up to 80% LTV, and terms up to 30 years make agency financing the clear first choice for qualifying Oakland mixed-use properties.
CMBS Loans at rates from approximately 5.5% to 7.0% serve mixed-use properties with commercial components exceeding agency thresholds. Non-recourse financing with up to 75% LTV and terms of 5 to 10 years works well for Oakland's larger mixed-use buildings in Jack London Square, Uptown, and along major commercial corridors.
SBA 504 Loans offer up to 90% LTV at below-market rates for owner-occupants of mixed-use properties. Oakland business owners who occupy their commercial space while renting out residential units above can leverage this program to control occupancy costs and build equity. The program is particularly popular along Telegraph Avenue, Grand Avenue, and in Fruitvale.
DSCR Loans at rates from roughly 6.0% to 8.5% allow mixed-use investors to qualify based on the property's combined income without personal tax return documentation. This streamlined approach works well for portfolio investors acquiring multiple mixed-use properties across Oakland's commercial corridors.
Bridge Loans at approximately 7.5% to 12.0% serve mixed-use properties undergoing renovation, commercial tenant replacement, or repositioning. The value-add strategy of renovating residential units while upgrading ground-floor commercial space can dramatically improve overall property income and value.
Bank and Credit Union Loans from local East Bay lenders offer flexible terms for mixed-use properties in the $500,000 to $5 million range. These portfolio loans can accommodate unique property characteristics that do not fit standardized programs.
Use the commercial mortgage calculator to model different financing scenarios for your Oakland mixed-use acquisition.
How Does Oakland's Rent Control Affect Mixed-Use Financing?
Oakland's rent control provisions affect the residential component of mixed-use properties, creating specific considerations for both investors and lenders.
Residential units in Oakland mixed-use buildings built before January 1, 1983 are subject to the city's rent control ordinance, which caps annual rent increases at CPI-based adjustments typically ranging from 2% to 5%. Commercial spaces in the same building are not subject to rent control, allowing market-rate adjustments on the commercial component.
For lenders, this creates a split underwriting approach: the residential component is projected with conservative rent growth (2% to 3% annually), while the commercial component can be underwritten with market-rate growth assumptions. Properties with a larger commercial component may actually benefit from this dynamic, as the unrestricted commercial income provides greater upside potential.
New construction and properties built within the last 15 years are exempt from Oakland's local rent control ordinance, and California's statewide AB 1482 provides a secondary layer with broader caps. Mixed-use developments at Brooklyn Basin, Mandela Station, and other recent projects enjoy this exemption, making them more attractive to lenders who can project stronger rent growth on the residential component.
The commercial component of mixed-use properties is not subject to any rent restrictions in Oakland, providing full flexibility to adjust rents to market rates upon lease renewal. This unrestricted commercial income stream is particularly valuable for lenders evaluating the overall risk profile of mixed-use investments.
What Value-Add Strategies Work for Oakland Mixed-Use Properties?
Mixed-use properties offer unique value-add opportunities because improvements to one component often create spillover benefits for the other.
Residential Renovation with Commercial Upgrade: Renovating upper-floor apartments while simultaneously upgrading ground-floor commercial spaces creates a reinforcing cycle. Higher-quality residential tenants increase foot traffic for commercial tenants, and better commercial tenants enhance the building's appeal for residential prospects. Budget $20,000 to $40,000 per residential unit and $30 to $80 per square foot for commercial tenant improvements.
Commercial Tenant Repositioning: Replacing lower-rent commercial tenants with higher-quality operators can dramatically improve building economics. Converting ground-floor space from a general retail use to a popular restaurant in Temescal or a specialty fitness studio near Lake Merritt can increase commercial rents by 30% to 50% while improving the building's overall desirability.
ADU Addition: California's ADU reform legislation allows Oakland property owners to add residential units to existing mixed-use properties, increasing rental income without changing the building's fundamental character. Adding units to underutilized space within existing mixed-use buildings can be financed through bridge loans and then stabilized for permanent refinancing.
Energy Efficiency and Green Certification: Fannie Mae's Green Financing program offers rate reductions for mixed-use properties that implement qualifying energy efficiency measures. Solar panels, LED lighting, efficient HVAC, and water conservation improvements reduce operating expenses while unlocking financing incentives.
Ready to explore mixed-use loan options in Oakland? Contact our team for a free consultation on financing strategies for Oakland mixed-use properties.
Frequently Asked Questions
What is the minimum down payment for a mixed-use loan in Oakland?
Down payment requirements depend on the loan program and use composition. Agency loans (Fannie Mae/Freddie Mac) for residential-dominant mixed-use require 20% to 25% down. CMBS loans require 25% to 30% down. SBA 504 loans for owner-occupants require as little as 10% down. DSCR loans require 20% to 30% down. Bridge loans require 20% to 25% equity. The key is the residential-to-commercial ratio: properties with 65%+ residential area access the most favorable down payment terms through agency programs.
How does the residential-to-commercial ratio affect mixed-use financing?
The ratio determines which loan programs are available and at what terms. Properties with 65% to 80% residential area typically qualify for agency financing (Fannie Mae/Freddie Mac) at rates of 5.0% to 5.75% with non-recourse terms and up to 80% LTV. As the commercial percentage increases beyond agency thresholds, the property shifts to CMBS, bank, or DSCR loan programs, which may carry higher rates or require more equity. Properties that are predominantly commercial with some residential units are typically underwritten as commercial properties rather than multifamily.
Can I use an SBA loan to buy a mixed-use building in Oakland?
Yes, SBA 504 loans are available for mixed-use buildings where you occupy at least 51% of the commercial space. You do not need to occupy the residential units. This makes SBA 504 an excellent option for Oakland business owners who want to purchase a building that includes their own storefront, office, or restaurant on the ground floor along with rental apartments above. The program provides up to 90% LTV with below-market fixed rates for 25 years, and the rental income from residential units helps support the loan qualification.
How does Oakland's rent control affect mixed-use property values?
Oakland's rent control affects only the residential component of mixed-use buildings (for units built before January 1, 1983). The commercial component is unrestricted and can be adjusted to market rates. Lenders underwrite the residential portion with more conservative growth assumptions (2% to 3% annually) while allowing market-rate projections for the commercial space. Properties exempt from rent control (built after 1983 or within 15 years of new construction) receive more favorable underwriting on both components.
What neighborhoods offer the best mixed-use investment returns in Oakland?
Temescal and Grand Avenue/Lakeshore offer the strongest risk-adjusted mixed-use returns due to premium rents, low vacancy, and strong tenant demand for both residential and commercial space. Uptown and Jack London Square provide higher absolute rents but with slightly more commercial volatility. West Oakland offers the highest return potential due to lower acquisition costs combined with the Mandela Station development catalyst, but carries higher execution risk. Fruitvale offers stable returns with strong neighborhood-serving demand.
How do BART stations affect mixed-use property values in Oakland?
BART access is one of the strongest value drivers for Oakland mixed-use properties. Transit proximity supports both the residential component (tenants value the commute to San Francisco in under 15 minutes) and the commercial component (foot traffic from commuters supports retail and restaurants). Properties within a quarter-mile of BART stations typically command rent premiums of 10% to 20% over comparable non-transit properties. Lenders apply more favorable vacancy and rent growth assumptions for BART-adjacent mixed-use assets.