Sale Shatters Previous Price-Per-Unit Record for Land Entitled for Multifamily Development in the City of Berkeley
OAKLAND, Calif. – CBRE announced the $21.5 million sale of 0.3 acres at 2590 Bancroft Way in Berkeley, Calif., across the street from the University of California, Berkeley. A confidential buyer acquired the property and plans to build an 87-unit, 232-bed student housing development on the site. The sales price equates to over $247,000 per entitled unit, surpassing the previous record by 26 percent.
Keith Manson, Zachary Greenwood and Mac Watson with CBRE’s Oakland office represented the seller, Ruegg and Ellsworth LLC.
“2590 Bancroft Way is an ideal student housing development opportunity. It is shovel ready, with permits in place, and a location in one of the most supply-constrained student housing markets in the entire country. The record pricing shows bullish investor optimism regarding Berkeley,” said Mr. Watson, associate, CBRE.
The return to in-person learning at UC Berkeley created a massive increase in demand for student housing. Rents for units in properties similar to what is planned at 2590 Bancroft have reached as high as $14 per sq. ft. per month.
“With surging rents, and limited future supply in the Southside pipeline, Berkeley will remain one of the most stable and attractive student housing markets in the country,” added Mr. Manson, senior vice president, CBRE.
Permits are in place at 2590 Bancroft to build an eight-story building with ground-floor retail and a rooftop terrace, with a unique vantage point of the UC Berkeley campus and the Berkeley Hills. Additionally, the finished project will include up to 40 bike parking spaces, and the property is just a three-minute walk to the center of the UC Berkeley campus.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.