$36M financing arranged by JLL Capital Markets for Berkeley student housing community in Berkeley, CA

 

Annie Rice 

LOS ANGELES, CA –  JLL Capital Markets has secured a $36 million acquisition financing for Varsity Berkeley, a mid-rise student housing complex.

Varsity Berkeley, Berkeley, CA

JLL worked on behalf of the borrower, Hawkins Way Capital LLC, in acquiring the two-year, floating-rate loan through Limekiln Real Estate Investment Management.

 

JLL Capital Market’s Debt Advisory team representing the borrower was led by Managing Directors Brandon Smith and Annie Rice and Director Gyasi Edmondson.

 

 Brandon Smith

The property will be operated as the FOUND Study Downtown Berkeley and will be managed by FCL Management, an operator of successful properties across select cities in the U.S., aligning with Hawkins Way Capital's strategy to maximize value in prime student housing markets.

 

Varsity Berkeley, located at 2024 Durant Ave., is situated just two blocks from UC Berkeley, a thriving campus with over 45,000 students and a recent 26.2% surge in enrollment.

                                                   Gyasi Edmondson

 

This prime location offers exceptional accessibility to a diverse array of shops, galleries, restaurants, theaters and community venues, boasting both a Walk Score and Bike Score of 96. The property's convenient setting also places residents only 15 miles from San Francisco, easily accessible via BART.

 

Berkeley's real estate market is characterized by high demand and limited supply, with over 60% of households renting and average home prices reaching $1.5 million.

 

This competitive environment, coupled with Berkeley's proximity to major employment hubs and the prestigious UC Berkeley campus, has resulted in consistently low vacancy rates below 5% and strong annual rent growth exceeding 3.5% since 2018, making it an attractive location for real estate investment.

 

Ross Walker

 

"We are thrilled to have secured financing for Varsity Berkeley, a prime student housing asset in one of the nation's most competitive real estate markets. This acquisition, marking our company's fifth in Northen California, aligns perfectly with our strategy to create strategic value in markets where student housing demands continue to grow,” said Ross Walker, Managing Partner of Hawkins Way Capital. “We're confident that FCL Management's expertise will help us unlock the full potential of this high-performing property as we continue to expand our portfolio."

 

For more news, videos and research resources, please visit JLL’s newsroom. 

 

Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

 

 

CONTACT:

 

 Gréta Kieras,

 Senior Associate

 Public Relations

Phone: +1 949 930 8498  

Email: greta.kieras@jll.com