The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
January 16, 2019
 Search RENTV
   Go!
 Video Programs
 News
News Home Page
Southern California
Northern California
Pacific Northwest
Texas/Southwest
Retail
Multifamily
Financing
Prop. Management
Archives
Press Releases
 R. E. Marketplace
Service Providers
JobWorks
Property Spotlight
 RENTV  Conferences
Subscriber Login:
  
Email      
    Go!
Password      
Forgot Password?



HOME PAGE NEWS
Printer-friendly Version   Email an Associate
Student Housing Project in Downtown Berkeley Gets $26 Mil in Development Money

12/17/18

The Austin Group has obtained $26.25 mil in development money for The Den, a 160-bed student housing development located in the heart of Downtown Berkeley, at Telegraph Ave and Channing Way. The site, requiring demolition of the existing retail/office space, is located just two blocks from campus.

The Den will consist of seven levels containing 40 units and 160 beds in a mix of layouts, as well as 2.5k sf of retail/restaurant space. The eight-story project will feature a rooftop balcony and garden to allow for student gatherings and take advantage of the beautiful views. The Den will receive a GreenPoint environmental certification equivalent to LEED Gold. Located next door to the University’s Maximino Martinez Commons sophomore dorm, the completed project will create much-needed student housing as well as complement the block’s collegiate pedestrian vibe.

The financing, arranged by Highland Realty Capital, originally consisted of a $2.25 mil land acquisition and pre-development loan in April 2017, which was sized at 70% loan-to-purchase-price. Once entitled, which caused the land value to increase significantly, Highland secured a $24 mil construction loan, representing 87% of the actual project costs.

The construction loan was sized to $600,000 per unit at a spread in the mid 300’s over LIBOR. The lender is a foreign bank not subject to Dodd-Frank’s HVCRE requirements.

Jeff Eliason, Principal with Highland, noted “Given the supply-constrained market in Berkeley and insatiable demand for student housing, The Den will be a highly profitable project for our client. And with the favorable construction financing requiring minimum cash equity, the projected return on equity is compelling.”




Return to the previous page


 


 


 
 
 



Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2019 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media