Emeryville-based Harvest Properties and San Francisco’s The Roxborough Group acquired 2168 Shattuck Avenue in Berkeley last month from the O’Connor Trust, a private family entity, in a transaction worth approximately $8.3 million, or $226 per square foot, according to public documents. The building was acquired for Roxborough Fund I.[contextly_sidebar id=”SmB7NG0bPf18q8uZ9VDF9CGVUZSnNaSJ”]The structure, commonly known as Constitution Square, is a three-story, 36,041-square-foot office building, with four ground floor retail units that sits in a prime location one block from the University of California, Berkeley campus. The building is also located directly in front of the Downtown Berkeley BART Station, which is the second busiest station outside San Francisco, according to a release by the two firms. This particular station will soon receive a $12-million renovation next year from the transportation system and will further enhance the transit options that are provided in downtown Berkeley.
“We were very interested in an investment opportunity in Berkeley,” said John Winther, founder and managing partner of Harvest Properties in a prepared statement. “This particular asset was appealing with its commuter friendly location and close proximity to Cal’s campus, providing tenants with immediate access to a pool of highly qualified job candidates.”
This is a value-add play for the two investors. The firms disclosed that their intention with the structure is to upgrade it and bring it to market standards, which includes converting one of the floors to a full open concept, creative space with modern amenities. Harvest and Roxborough will make other cosmetic upgrades to the exterior as well as update the office lobby and entrance.
The East Bay city and its major employer, the University of California, Berkeley, have been an attractive combination for other investors and developers of late, and this was one of the main drivers for the two investors, as well.
“With its highly desirable, transit-friendly location immediately adjacent to the soon-to-be-redeveloped Downtown Berkeley BART station and its potential for a tasteful modernization, we believe this asset presents a fantastic opportunity to capture the growing tenant interest we are seeing in Berkeley,” said founder and managing partner of The Roxborough Group, Marc Perrin in a statement. “Downtown Berkeley will continue to improve in the coming years with large investments from the Berkeley Art Museum and Pacific Film Archive and other private investors. We are excited to be partnering with Harvest, a first class operating partner, to help transform and professionally manage this asset. ”
Aileen Dolby of Colliers International represented the buyers in the transaction.