The landmark building sold for over its list price, indicating exceptionally strong demand.
BERKELEY, Calif., Sept. 11, 2012 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has closed on the sale of Cambridge Apartments, a landmark 43-unit apartment complex with ground-floor retail space at 2500 Durant Ave. in Berkeley. The sales price is $11.6 million, which represents a price of $269,767 per unit.
Brandon Geraldo and Eli Davidson, associates in the firm’s San Francisco and Oakland offices, respectfully, represented the seller, John Lineweaver of Berkeley Associates LLC. The buyer was a joint venture of Prado Group and Jonathan Rose Cos.
“The new ownership has acquired a prime property in an irreplaceable location that will continue to appreciate in value over the near and long term,” says Geraldo. “Apartment rents in Berkeley and other select East Bay submarkets are among the highest in the nation, according to Marcus & Millichap Research Services. And the retail component of this property is currently 100 percent occupied. The property’s proximity to the (University of California) Berkeley campus, a mere block away, further bolsters its investment value,” adds Geraldo.
“Demand was strong for this building, and it ultimately resulted in a sale that exceeded our initial listing price,” says Davidson. “Well-located, urban infill multifamily assets in urban infill areas will remain one of the safest classes of investment, especially as investors continue to flee to the safety of real estate in major U.S. markets,” he notes.
Designed by famed Berkeley city architect Walter H. Ratcliff Jr., Cambridge Apartments at 2500 Durant Ave. encompasses 32,121 square feet. Built in 1914, the historic property currently consists of 40 residential units and 12,734 square feet of retail space. The multifamily portion includes 12 studios, 24 one-bedroom units and four two-bedroom units, all of which are individually metered for electricity. Every unit offers views ranging from the shops of Telegraph Avenue and Durant Street to the Berkeley Hills and/or San Francisco Bay.
The multi-tenant retail component of the property is fully occupied by Smart Alec’s, Amplify Barber Shop and Pappy’s Grill & Sports Bar, which committed well over $700,000 in tenant improvements to its space since March 2010.
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.