Hawkins Way Capital LLC has purchased Varsity Berkeley, a mid-rise student housing complex located at 2024 Durant Avenue in Berkeley, California.
Although we don’t have the price tag, we can tell you that the deal was financed with a two-year, floating-rate acquisition loan of $36 million funded through Limekiln Real Estate Investment Management. The loan was arranged by Brandon Smith, Annie Rice and Gyasi Edmondson with JLL Capital Markets.
The property is situated just two blocks from UC Berkeley, a thriving campus with over 45,000 students and a recent 26.2% surge in enrollment. 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.
Varsity Berkeley offers a variety of living options, including studios, two- and three-bedroom floorplans, with an average unit size of approximately 800 sf. Each apartment boasts luxury amenities such as fully equipped kitchens with premium-grade countertops, tile backsplashes, stainless steel appliances, modern cabinetry and in-unit washers and dryers. Residents enjoy an array of community features tailored to student life, including a rooftop terrace with sun deck, controlled access, a 24-hour resident lounge, a courtyard with seating and firepits, ample bicycle parking and a pet-friendly environment.
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.
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 mil. 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.
