The Bay Area Multifamily Team of Colliers International has completed the sale of a 42-unit apartment community in Berkeley, CA. The property is located at 1300 Delaware Street, two blocks from the North Berkeley BART Station and just over a mile from the UC Berkeley campus.
The property generated significant interest from the market with more than 35 individual buyer tours and 14 written offers. Due to the extremely competitive set of offers received, the seller selected Tesseract Capital Group (TCG) as the buyer due to their sterling reputation, experience in the Berkeley market and competitive offer terms.
“We are thrilled with the closing of 1300 Delaware as the project is a perfect fit for our geographic concentration and targeted business plan. Given the project’s heavy construction requirements, our vertically integrated in-house construction platform is what gave us the edge on this deal. Despite being a highly competitive bidding process, Brandon and Ryan maintained an efficient and fair practice throughout, which ultimately led to an effortless closing,” said Ben Jiang, CEO of Tesseract Capital Group.
Senior Vice President’s Brandon Geraldo and Ryan Wagner, Vice President Kalah Espinoza and Associate Mathew Flaherty of the Colliers International’s San Francisco office, represented the seller, California Lutheran University.
The offering was unique due to 40 of the 42 units being delivered vacant at the close of escrow. The property sold for $12,708,000 or 15% over the listing price, which equates to $302,571 per unit and $561 per square foot. The property is comprised of 28 one-bedroom units and 14 two-bedroom units. The Seller, California Lutheran University, a non-profit organization based in Southern California, owned the property for nearly 40 years.
“The 1300 Delaware offering was an extremely rare opportunity to acquire a largely vacant apartment community in a rent control market. The buyer will achieve significant renovation efficiencies and be able to lease units at market rent,” said Ryan Wagner.
“The demand for value-add opportunities near major transportation hubs, such as BART stations, is greater than ever as Bay Area traffic continues to worsen,” says Brandon Geraldo.
Ryan Wagner and Brandon Geraldo lead the Bay Area Multifamily Team of Colliers International that provides sale and advisory services to owners in the East Bay, North Bay and South Bay. The Bay Area Multifamily Team currently has 40% market share for closed transactions between $10MM and $40MM in the East Bay and over $100MM in active and pending transactions. “Our team’s focus on the middle-market multifamily space in the Bay Area is unparalleled and benefits both private and institutional capital groups,” said Geraldo.
About Tesseract Capital Group
Tesseract Capital Group (TCG) is an opportunistic commercial real estate investment company headquartered in San Francisco, CA. Its core business focuses on the acquisition, redevelopment, and management of multifamily apartment assets throughout California.
About Colliers International Group
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $20 billion of assets under management from the world’s most respected institutional real estate investors.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.