UC Berkeley Sale Surpasses Previous Price Per Unit

A 0.3-acre site at 2590 Bancroft Way in Berkeley across the street from the University of California, Berkeley recently sold for $21.5 million. The sales price equates to more than $247,000 per entitled unit, surpassing the previous record by 26 percent.

A confidential buyer acquired the property and plans to build an 87-unit 232-bed student housing development on the site. Permits are in place at 2590 Bancroft to build an eight-story building with ground-floor retail and a rooftop terrace.

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 Watson.

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 square foot 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,” adds Manson.