CASTLE CRAIG APARTMENTS | 27 Value-Add Units in Berkeley, CA

Highlights:

• Irreplaceable Location Just 1 Block from UC Berkeley - The property is steps from the UC Berkeley campus, ranked the #1 public university in the world by US News and Forbes, ensuring constant demand from students, faculty, and staff.
• Flexible Acquisition Opportunity - Purchase Individually or as a Portfolio 2525 Durant Avenue (27 units), 2419 Durant Avenue (32 units) and 2411 Durant Ave (9 Units) may be acquired separately or together as a rare 68-unit value-add portfolio in Berkeley's Southside neighborhood.
• Ideal for Student Housing - With UC Berkeley’s expanding student population driving demand for off-campus housing, the property’s history of student tenancy makes it well-positioned for repositioning into a modern, purpose-driven student housing operation.
• Opportunity to Increase Bedroom Count - The existing unit layouts may allow for the addition of bedrooms, increasing the total bedroom and bed count, catering to student renters seeking flexible housing options.
• Opportunity to Furnish Units - With Berkeley’s competitive student housing market, the property offers the opportunity to implement a rent-bythe-bed strategy, by furnishing units, thus, maximizing rental income by offering flexible room occupancy in a high-demand market.
• Strong Rent Growth & Demand - UC Berkeley’s expanding student body, combined with limited housing options, has led to significant rent increases. Average rents have grown by 25% over the last decade, with another 23% projected growth through 2035, providing solid long-term investment potential.
• High Demand Due to UC Berkeley's Growing Population & Housing Shortage - UC Berkeley has over 45,900 students & only ~11,300 available beds creating ongoing demand for off-campus housing options.
• High Vacancy and Immediate Upside In a Vintage Building With Character - 10 vacant units provide immediate potential to complete unit upgrades and implement a student-housing-focused rental strategy to maximize rental income.

Description:

Offers are due Tuesday, September 30th by 5:00pm.

Property tours are available by appointment.

Disclosure package & marketing flyer available upon request.

The Cushman & Wakefield Northern California Capital Markets Group is pleased to present The Castle Craig Apartments, a distinguished 27-unit multifamily asset located in an irreplaceable location at 2525 Durant Avenue in the highly sought-after Southside neighborhood of Berkeley, CA. Built in 1928, this 17,802-square-foot property boasts classic architectural character and presents a prime investment opportunity just steps away from the world-renowned UC Berkeley campus. Offered for the first time in more than 50 years, The Leroy Apartments represents a truly unique chance to secure a generational multifamily investment in one of the Bay Area's most dynamic rental markets.

The property’s unit mix consists of 13 studios, 12 one-bedroom units, and 2 two-bedroom units, catering to a diverse range of tenants, including UC Berkeley students, faculty, and local professionals seeking direct adjacency to UC Berkeley. Currently, 10 units are vacant,
providing immediate value-add potential for an investor to implement property upgrades and implement a modern purpose-driven student housing operation.

Castle Craig is offered at an attractive asking price of $7,900,000 ($292,593 per unit), with a stabilized cap rate of 5.86% and a proforma cap rate of 6.86%. The property’s stabilized rents average $2,506 per unit, while market rents average $2,785. This spread highlights strong rent growth trends and provides meaningful upside potential through repositioning and lease-up of the vacant units.

Operationally, the property is well-positioned for continued demand, featuring individually metered electricity, while the landlord is responsible for water, gas, sewer, and waste services. Each unit benefits from on-site card-operated laundry facilities, enhancing the
property’s appeal to the predominantly student renter demographic.

Located in a highly walkable area with a Walk Score of 97 and Bike Score of 89, Castle Craig offers excellent accessibility to UC Berkeley, major bus lines, and the BART system. The property’s proximity to Telegraph Avenue, Berkeley’s main commercial corridor, provides residents with convenient access to a wide range of retail and dining options.

Demand for centrally located, well-amenitized housing in Berkeley’s supply-constrained Southside submarket remains strong, driven by UC Berkeley’s ongoing bed shortage and consistent population growth. Rent growth in the area has increased by 25% over the past 10 years, and is projected to exceed 23% through 2035. This, combined with the Castle Craig's classic construction, irreplaceable location, high current vacancy, and significant rent upside, makes the Property an exceptional opportunity for investors seeking both stable in-place income and long-term capital appreciation.

The property may be purchased individually or as a 3 property, 68-unit portfolio with The Keystone Apartments (2419 Durant Ave - 32 Units) and The Leroy Apartments (2411 Durant Ave - 9 Units).