Sack Capital Partners is continuing its Bay Area shopping spree with an apartment building in Berkeley.
The San Francisco-based firm bought the Fourth & U Apartments for $52.3 million, the San Francisco Business Times reported. The previous owner was an affiliate of Essex Property Trust, according to the Business Times; the firm could not be reached for comment by the publication.
The transaction for the 171-unit five-story property at 2020 Fourth Street totaled roughly $305,847 per unit. In addition to the residences, the building contains 15,000 square feet of retail across eight suites.
Sack Capital plans to make interior and exterior renovations to the property and add on-site property management and leasing, according to the Business Times. The company looks to “address the affordability gap between renting and owning” in Berkeley, Jeff Smith, managing partner with Sack Capital, said.
The Berkeley property was originally built as condominiums in 2010, and offers mostly one-bedroom units with some two-bedrooms. It sits south of Berkeley’s Fourth street retail corridor.
Sack’s purchase of the 171-unit five-story property at 2020 4th Street marks the company’s third acquisition in the past few weeks. Earlier this month, Sack acquired the 164-unit Fountain Park apartments in San Jose for $52 million. After that, Sack arranged structured financing on behalf of Step Up Housing to buy the 148-unit Bayside Apartment Homes in Pinole for $36.9 million; Sack will provide asset and property management there.
The multifamily market in Berkeley has seen several apartment buildings come under new ownership in recent years as a glut of units increased supply and drove down rents.
In February, Read Investments bought the 98-unit eight-story Higby apartment building for $32 million after the property was seized by its lender via a deed in lieu of foreclosure last year. A month later, Artemis Real Estate Partners bought the 143-unit Berkeley Central apartments for $55 million, or about 40 percent below the property’s assessed value.
Earlier this summer, the University Park apartments at 1709 Shattuck Avenue and 1710 Walnut Street headed to foreclosure auction after owner Academy West Investments defaulted on payments on a loan tied to the complex. The property is currently for sale.
— Chris Malone Méndez
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