(Read more on the multifamily market.)
BERKELEY, CA-Equity Residential has acquired a seven-property apartment portfolio in this high-barrier-to-entry market that includes 40,048 sf of street-level retail and 255 parking spaces. The portfolio includes 418 apartment units within walking distance of the University of California.
All seven of the properties were developed between 1998 and 2004 in Downtown Berkeley. Transwestern Multi Housing Capital Advisors sold the property through a traditional bid process on behalf of the developer, Panoramic Interests. MHCA managing directors Herb Chase and Curtis Palmer had the disposition assignment.
Equity Residential, a Chicago-based public company, typically does not acquire small apartment properties. Chase tells GlobeSt.com Equity "made an exception" in this case because the properties are "very tightly clustered in an urban Downtown environment next to one of the most prominent universities in the country."
Neither Chase nor Palmer would comment on the sale price and neither Equity Residential nor the seller could be reached Wednesday for comment. Local industry experts tell GlobeSt.com that new apartments in high-barrier-to-entry markets in the Bay Area rent for $3 per sf and can trade for anywhere between $325,000 and $375,000 per unit, which for the Berkeley portfolio would equate to a value of between $136 million and $157 million.
The portfolio includes Acton Courtyard, a five-story, 71-unit property built in 2003 at 1370 University Ave.; the Artech Building, a 21-unit, five-story property built in 2002 at 2002 Addison St.; the Bachenheimer Building, a 44-unit, five-story building built in 2004 at 2119 University Ave.; the Berkeleyan, a 56-unit, five-story building built in 1998 at 1910 Oxford St.; the Fine Arts Building, a 100-unit, five-story building built in 2004 at 2100 Haste St.; the Gaia Building, a 91-unit, seven-story building built in 2000 at 2116 Allston Way; and the Touriel Building, a five-story building constructed in 2004 at 2004 University Ave.
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