Marcus & Millichap sold the 51-unit apartment building with 7,500 square feet of ground-floor retail.
BERKELEY, Calif., May 18, 2012 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Berkeley Delaware Court Apartments, a 34,955-square foot lender-owned property in Berkeley with 51 apartment units and 7,500 square feet of retail space. The $11,925,000 sales price equates to $219,117 per unit when allocating $100 a square foot to the vacant retail space.
Taylor Flynn and Eli Davidson, associates, along with Vincent Schwab, a senior vice president investments in Marcus & Millichap’s San Francisco office, exclusively represented the seller, First Citizens Bank of Southern California. Flynn, Davidson and Schwab also represented the buyer, Hudson McDonald LLC, an urban infill development firm based in Berkeley.
“Originally, this property was developed as a condominium project,” explains Flynn. “First Citizens Bank gained control of the asset in late 2011 and after a 45-day marketing period, we received 12 qualified offers from a variety of investors and closed on May 7, 2012. The new ownership group is able to obtain $8.4 million in construction financing on the asset even though it was 70 percent vacant at the time of closing,” Flynn notes.
“This is a very well-located property in a strong East Bay submarket, where rents continue to rise,” says Schwab. Healthy demand, including demand from students who attend nearby University of California, Berkley, will enable the new ownership to lease up the remaining vacant apartment units and achieve strong returns over the near and long term,” he adds.
Constructed in 2011, Berkeley Delaware Court Apartments is located at 1800 San Pablo Ave. In addition to three studio units, 40 one-bedroom units, eight two-bedroom units and one 7,500-square foot retail space that can be divided into six separate addresses, the property includes a 67-car parking garage.
The well-designed Berkeley Delaware Court Apartments complex is situated along one of the main arteries of Berkeley – San Pablo Avenue – only two blocks from University Avenue. The property is within walking distance of the Fourth Street commercial district, North Berkeley Bay Area Rapid Transit (BART) station and the Berkeley Amtrak station.
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With more than 1,000 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest firm specializing in commercial real estate investment services in the nation. Marcus & Millichap closed 5,085 transactions in 2011, the highest of any commercial real estate brokerage firm. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology and relationships with the largest pool of qualified investors nationally.