DivcoWest buys more than 200 units in three Berkeley apartment buildings for $102M
Real estate investment company bought the properties through three different affiliates
DivcoWest, which bought a South San Francisco office building for a life science conversion, bought more than 200 residential units in three apartment complexes in Berkeley.
The company, acting through three separate affiliates, bought Stadium Place, Telegraph Gardens and Allston Place for a total of $102 million, the Mercury News reported.
The purchase of those apartments reflects a trend of investors buying multifamily residential properties in markets with slower growth, like Berkeley. Since the city isn’t in the midst of a housing boom, DivcoWest and other investors won’t face increased competition from new housing projects. That means the company can take the time needed to renovate the apartments to make them more attractive to potential residents.
The Stadium Place property, which is located at 2310 Fulton Street, consists of 133 units with rents ranging from $2,300-$6,000 per month. The purchase price of $42.8 million comes out to about $321,800 per unit.
The 38-unit Telegraph Gardens, which is located at 3001 Telegraph Avenue, cost DivcoWest $31 million, or $815,800 per unit. The complex, which was built in 2013, rents units for $3,250-$4,450 per month.
The third property that was a part of the purchase was the 60-unit Allston Place. The $28.3 million purchase price for the complex located at 2161 Allston Way comes out to about $470,000 per unit. Rents in the complex, which was built 20 years ago, range from $3,325-$4,400 per month.
Last month, DivcoWest bought a three-story office building at 5000 Shoreline Court for $164.5 million. The real estate investment firm plans to convert the waterfront property into life science labs with a new generator system, lab-quality heating, ventilation and air conditioning. The entryway, common areas and elevator lobbies will also be renovated during the process.
[MN] — Victoria Pruitt