Investor Competition for Quality Assets Remains Stiff

K Street Flats, a 170-unit multifamily property in downtown Berkeley, recently sold for $100 million. Built in 2006, the development comprises one- and two-bedroom apartments just a half-mile from UC Berkeley.

Designed with students in mind, the property offers an off-campus living option with ample community amenities including outdoor grilling stations, 24-hour study lounges and pet-friendly access. The property’s downtown location is less than two blocks from the BART station near Shattuck Avenue.

The buyer successfully negotiated with the city to expand affordable housing in the market and was successful in selling bonds that enabled the purchase of the property. Colliers’ Kitty Wallace alongside Anna Kampling represented both parties in the transaction.

“UC Berkeley’s reopening has led to the submarket’s vacancy rate decreasing rapidly while increasing demand for affordable housing,” said Wallace. “K Street Flats’ amenities and proximity to downtown and BART station make it the ideal home for affordable and market-rate renters. Amid an incredibly tight market, competition for quality assets remains stiff for investors looking to take advantage of current market conditions, and this transaction created tremendous value for both sides.”