"Capitalization was put in place in the third quarter of 2007 [before the credit markets fell apart] and since then we have been finalizing permitting and other pre-development activities," he said.

Located at 2055 Center St., the Arpeggio of Berkeley will be a nine-story building housing 143 condominiums, 10,000 sf of administrative and theater space for the Berkeley Repertory Theater and 5,700 sf of street-level retail over three levels of underground parking. A dedicated public corridor through the property lined art will connect Center Street with the Arts & Theater District to the north on Addison Street.

In addition to their hopes the economy will be better by early 2010, SNK is betting on the fact that there is little or no competitive product ahead of it, that there are high barriers to entry and, because of those things, there will be pent-up demand. He sees the buyers being a mix of artists, professors, local business professionals and empty nesters.