Ownership of Affordable Housing Complex in Berkeley Closes on $34.2MM Equity Deal

Pennant Housing Group, Renewal Housing Inc., Greentree Affordable Holdings and Foundation Housing, Berkeley, Greystone Servicing Company, CSCDA, Harriet Tubman Terrace
Courtesy of Harriet Tubman Terrace Apartments

By Meghan Hall

The City of Berkeley has seen continued development activity and investor interest, and a new multifamily deal has been added to the mix. At the beginning of the month, the ownership of the Harriet Tubman Terrace apartments looks to have brought on multiple equity partners sold $34.2 million, or about $375,824 per unit. The “buyers” on public records are listed as HT Terrace Renewal, which is affiliated with an ownership group composed of Pennant Housing Group, Renewal Housing Inc., Greentree Affordable Holdings and Foundation Housing.

The seller is an entity associated with HT Terrace Affordable LLC, based in Rockville, Maryland. However, the limited liability company is also affiliated with Foundation Housing, signaling the transaction is part of a wider equity deal. Public records indicate that the asset last traded hands in April of 2019. At the time, Foundation Housing acquired the asset for $33 million, or about $362,637 per unit.

In the most recent deal, Greystone Servicing Company provided $32.5 million to finance the deal.

The 91-unit complex is located at 2870 Adeline Street and caters to low-income seniors 62 years and older. Units are a mix of studios,  one-bedroom and two-bedroom apartments. Units range in size from about 400 square feet to 700 square feet. Community amenities feature landscaped grounds, social services, community room and a brand-new computer lab.

In September, the California Statewide Communities Development Authority (CSCDA) issued $22.38 million in tax-exempt bonds for the apartment complex. The bond ensures that the complex will continue to be 100 percent affordable to tenants for another 55 years. According to a statement by CSCDA, the complex will also undergo “extensive” interior and exterior renovations in the near future. 

Berkeley has seen a flurry of activity in recent months as both investors and developers look to make their mark on the East Bay city. In August, Avanath Capital acquired a mixed-use community for $25.3 million, or about $356,3338 per unit. Core spaces, a developer, has submitted plans for a 17-story student housing development in downtown, while the U.C. Regents voted to approve a $312 million housing project at Berkeley’s People’s Park. The development is expected to house 1,100 undergraduates. Combined, the investments will continue to shape Berkely in the future as organizations work to both preserve and create affordable housing.

As of this writing, Foundation Housing had not yet returned The Registry’s request for comment.

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