By Jon Peterson
The 30,370 square foot Bancroft Center retail property located at 2580 Bancroft Way in Berkeley is now on the market for sale. This will offer the new owner a chance to create a core plus kind of a property in a very strong market that has significant barriers to entry for new development projects.[contextly_sidebar id=”0xezMn5JbNYXabiWBPiJcXR8gDELPEkc”]Core plus properties are known as those that have a very strong current income as well as the chance to add value down the road through strategies like a redevelopment or expansion. The Bancroft Center offers both of these opportunities.
According to the offering document, the existing property is now 93 percent occupied by nine tenants, including a book store and other local tenants. The projected net operating income for 2015 is around $751,000.
The property does offer a re-development option. “I think there is a very strong redevelopment potential with this property,” says Erik Hanson, a vice president with Colliers International in the San Francisco office. He and Frank Wheeler, an executive vice president with Colliers International in San Francisco are the exclusive listing agents for the property.
Colliers is representing the owner of the property, a private family trust. “This owner has owned the property for a long time. It’s bringing the property to market for sale to take advantage of all the interest there is in owning real estate in the greater San Francisco Bay Area,” said Hanson.
Colliers has been working with Oakland-based Lowney Architects as for what the future re-development potential might be. The feeling is that this could become a redevelopment project with 21,000 square feet of ground floor retail and four levels of residential housing above containing 132 units. “As the project stands now, it is zoned for this kind of use, but the new owner would have to get entitlements for this project to happen, “ said Hanson.
The project’s location would seem to make it a natural for some kind of university housing. “Given that the site is located across the street from the University of California at Berkeley, I would think that University housing seems like a logical choice. This could be either for the students or people who work at the school,” said Hanson.
He declined to discuss possible pricing for the property. “I would think that the project would attract developers or other investors who would be interested in turning the project into the mixed-use plan for the future. Our expectation is that offers for the property would be coming in sometime during the month of November,” said Hanson.