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AQARAT SELLS APARTMENT COMPLEX IN CALIFORNIA AT RECORD BREAKING PER UNIT AND PER SQUARE FOOT PRICING.

AQARAT SELLS APARTMENT COMPLEX IN CALIFORNIA AT RECORD BREAKING PER UNIT AND PER SQUARE FOOT PRICING.

AQARAT (Kuwait Real Estate Company KPSC) has announced the sale of 2537 Fulton Street, a student housing development in Berkeley, California.  The property sold for $3,825.000 or $478,125 per unit and $590.37 per square foot.  Both the price per unit and the price per foot are likely records for apartments in Berkeley built before 2000 and over 5 units.  The CAP rate was approximately 5.19 percent with a Gross Rental Multiplier of almost 13.56. CBRE’s East Bay Multifamily Team, led by Keith Manson, First Vice President, and Zachary Greenwood, Associate, represented both parties in the transaction. 

“Student occupied assets continue to command strong rents.  This is what helped get the sale to almost $500,000 per unit and $600 per square foot.  Historically, these metrics are super aggressive.  We brought an all cash buyer to the table that was able to close in 15 days,” commented Manson. 

Fahad Al-Shamlan, Vice President- Investments and Acquisitions at AQARAT added, “Student housing has become an increasingly important asset class for AQARAT’s plans as we expand the U.S. portfolio. The strategy is beginning to yield profit as we exit some markets with the intention to enter others. The price escalation in the local Berkeley market made this an opportune time to divest of property, however, the company’s long standing history in California dates back decades and we are confident in uncovering additional profitable real estate opportunities within the market in the coming years.”

Located in South Berkeley, the asset is just four blocks from the University of California, Berkeley, and walking distance to all of Downtown Berkeley’s shops, restaurants and entertainment making this asset a prime option for student living.

2537 Fulton Street was built in 1968, and received a complete remodel in 2013, which included a seismic upgrade with permits and removal from Berkeley’s soft-story inventory list. 

Guy Nesdale, Partner of Empire Square Group, AQARAT’s asset manager on the transaction, commented: “With a controlled, targeted and thoughtful marketing process, CBRE were able to source several buyers for us within just two weeks of relisting the property. “