Oakland, CA – May 23, 2016 – CBRE Group, Inc. has announced the sale of 2537 Fulton Street, an 8-unit apartment building in Berkeley, California. The property sold for $3,825,000 or $478,125 per unit and $590.37 per square foot. Both the price per unit and the price per square foot are likely records for apartments in Berkeley built before 2000 with over five units.
The CAP rate was approximately 5.19 percent with a GRM of almost 13.56. Empire Square Group, a New York-based private equity group, sold the property on behalf of the owner, Aqarat, a leading global real estate group based in Kuwait. The asset was purchased by a local buyer. CBRE’s East Bay Multifamily team, led by Keith Manson, First Vice President, and Zachary Greenwood, Associate, represented both parties in the transaction.
“Student-occupied assets continue to command strong rents. This helped the sale reach almost $500,000 per unit and $600 per square foot,” said Manson. “Historically, these metrics are aggressive, but we brought an all cash buyer to the table that was able to close in 15 days.”
Located in South Berkeley, the asset is just four blocks from the University of California, Berkeley, and walking distance to all of Downtown Berkeley’s shops, restaurants and entertainment making this asset a prime option for student living.
2537 Fulton Street was built in 1968 and received a complete remodel in 2013, which included a seismic upgrade with permits and removal from Berkeley’s soft-story inventory list. The building is comprised of four stories with eight two-bedroom, one-bath units and one penthouse studio (un-warranted).
Guy Nesdale, Partner of Empire Square Group commented: “We engaged Keith Manson and his East Bay CBRE Multifamily team after another large Bay Area brokerage firm failed to source any bids during a marketing process that took several months. CBRE exceeded all expectations. With a controlled, targeted and thoughtful marketing process, CBRE was able to source several buyers for us within just two weeks of relisting the property. The buyer CBRE sourced was all cash and purchasing at an aggressive price which afforded us a speedy process.”
Keith Manson leads CBRE’s East Bay Multifamily Investment Properties group and serves the investment needs of both property owners and buyers with a focus on the sale of multifamily properties, land to develop apartment buildings and condominium conversions/reversions.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
About Empire Square Group
Empire Square Group (www.empiresquaregroup.com) is a fast growing real estate private equity firm based in Manhattan, New York, NY. Our success has been driven by our hands-on approach to investment management and dedication to our close partner relationships. We identify unique investment opportunities and create value through active management and, where appropriate, repositioning and development. We nurture true long-term relationships with investors, both in the US and overseas. Empire Square currently manages more than $400 million in assets across the United States. Empire Square Group is run by Guy Nesdale and David Maltby.
AQARAT (Kuwait Real Estate Company K.P.S.C., www.aqarat.com.kw) is one of Kuwait’s leading real estate companies. The company was the first real estate company to be listed on the Kuwait Stock Exchange, and has a forty-year track record delivering value to its customers and stakeholders through integrity and innovation. The company pioneered a multitude of concepts in the local market which included Kuwait City’s first mixed-use urban development, the country’s first luxury seafront residential complex as well as its first public-private build-operate-transfer development with the Kuwaiti government. Today, AQARAT’s global footprint spans throughout the Middle East, Africa, Europe and the United States.