DivcoWest, which purchased an office building south of San Francisco for life sciences conversion, has purchased more than 200 residential units in three apartment complexes in Berkeley.
The company, acting through three separate affiliates, purchased Stadium Place, Telegraph Gardens and Allston Place for a total of $102 million, Mercury News reported.
The purchase of these apartments reflects a trend of investors buying multi-family residential properties in slower growing markets, such as Berkeley. Since the city is not in the midst of a housing boom, DivcoWest and other investors will not face increased competition from new housing projects. This means that the company can take the time necessary to renovate the apartments to make them more attractive to potential residents.
The Stadium Place property, located at 2310 Fulton Street, consists of 133 units with rents ranging from $2,300 to $6,000 per month. The purchase price of $42.8 million is approximately $321,800 per unit.
The 38-unit Telegraph Gardens, located at 3001 Telegraph Avenue, cost DivcoWest $31 million, or $815,800 per unit. The resort, which was built in 2013, rents units for $3,250 to $4,450 per month.
The third property that was part of the purchase was the 60-unit Allston Place. The $28.3 million purchase price for the complex at 2161 Allston Way is approximately $470,000 per unit. Rents for the complex, which was built 20 years ago, range from $3,325 to $4,400 per month.
Last month, DivcoWest bought a three-story office building at 5000 Shoreline Court for $164.5 million. The real estate investment firm plans to convert the waterfront property into life science labs with a new generator system, lab-grade heating, ventilation and air conditioning. The entrance, common areas and elevator lobbies will also be renovated in the process.
[MN] —Victoria Pruitt