In recent years, Oakland has struggled with rising crime, businesses shutting down and a cash-strapped city government, not to mention the loss of all three of its major sports teams.
A glut of shiny new high-rise apartment buildings that were planned when the Bay Area's second city seemed on the verge of a San Francisco-like tech boom came online a few years later into a very different market, as high supply and low demand pushed rents dramatically downward.
Now Oakland's multifamily rental market is finally showing signs of stabilizing, as a handful of investors bet on the city's future. One of them, the Lakeside Group, recently purchased a 243-unit, 23-story apartment building in the neighborhood known as Uptown. The group, led by Oakland booster Isaac Abid, did not disclose the purchase price for the Grand, a glassy, modern tower developed by Essex Property Trust in 2009. But a LinkedIn post from JLL's Capital Markets team involved with the deal said the property traded for $97.5 million.
“This acquisition reflects our commitment to Downtown Oakland and to helping restore energy, optimism and momentum to a part of the city that matters deeply to us,” Abid, CEO and founder of Lakeside Group, said in a news release. “Our work in Northlake is rooted in a belief that Oakland’s urban core can thrive again with the right mix of stewardship, investment and community partnership.”
This is Lakeside’s second big real estate acquisition since Abid left HP Investors to form the company last year. In October, Lakeside bought the debt on a distressed 15-story office tower nearby at 180 Grand Ave. for around $30 million. It had last changed hands for $175 million back in 2019.
The firm plans to make enhancements at the Grand in coordination with Northlake, a local group pioneered by Abid that partners with the city and the Uptown Business Improvement District to improve public safety, boost local businesses and reactivate the area with 24/7 programming, according to a press release. The building is a block from Northlake's town square at the corner of Broadway and 23rd streets, where the group has embarked on a plan to host live music and weekly events.
Rents rising again
Oakland's multifamily market is still regaining its footing following a flurry of construction that flooded the market with some 10,000 units of housing in just a few years. The influx of new apartments — combined with the effects of the pandemic and its impact on the city's office market — sent rents plummeting, forcing many landlords to offer rent deals and other incentives to lure tenants.
Meanwhile, lower rents made it challenging to refinance construction loans, enabling some investors to score deep discounts on apartment buildings while others have seen foreclosures. Earlier this year, the Martin Group bought a 224-unit building at 1889 Harrison St. in downtown Oakland for $61 million, around half of its assessed value, according to public records. Three Steps Properties acquired a 254-unit apartment building at 447 17th St. for $99 million in December in a deal that was also about half of the property's assessed value.
In April, the 241-unit Orion apartment complex on the Oakland waterfront went back to its lender due to a $119 million delinquent loan. Lender Brookfield Property Partners seized The Logan at 5110 Telegraph Ave. from RAD Urban through a deed in lieu of foreclosure process earlier this year.
However, Oakland rents are beginning to climb again after three years of steady declines. In 2025, rent growth has turned a corner, with annual growth reaching 1.3% in the current quarter, according to CoStar. While demand has stayed steady, Oakland's multifamily vacancy rate has begun to inch down, standing at 9.2% in the third quarter of 2025, as new units are quickly occupied, according to CoStar.
"This trend is expected to continue as recently completed communities stabilize, increasing the likelihood of sustained rent growth for the year ahead," according to a Costar report that noted downtown Oakland in particular remains appealing for young professionals and others seeking a more affordable "urban lifestyle compared to costlier Bay Area cities like San Francisco and San Jose."