Sack Capital Partners (SCP), a San Francisco-based real estate investment and management firm with multifamily properties throughout the west coast announced the acquisition of Fourth & U Apartments, a 171-unit, five-story mid-rise with ground-floor retail at 2020 Fourth Street in Berkeley, California.
SCP plans to execute a value-add strategy at the property by investing in interior and exterior renovations. SCP will also provide onsite property management, and leasing for the asset.
“We see great opportunity to improve this under-appreciated property in Berkeley,” said David Feinberg, Sack Capital Partners Managing Partner. “With the demand for residential in this area that is supported by a diverse economic base of university, biotech, and healthcare employers – most notably Kaiser Permanente – SCP will reinvest and drive performance through renovations to both apartment residences and exterior areas, as well as an accelerated retail leasing plan.”
Originally built as condominiums in 2010, Fourth & U offers large floor plans: 77% one-bedroom units averaging 706 square feet and 23% two-bedroom/two-bath units averaging 1,108 square feet. The building also contains 15,000 square feet in eight spaces of ground-floor retail. Currently property managed remotely, SCP will improve the experience for residents by bringing that onsite, as well as attracting prospective retail tenants who want proximity to other nearby national retailers.
The property benefits from its premier location just south of Berkeley’s highly desirable Fourth Street retail corridor, with proximity to university, biotech, and healthcare employers, including Kaiser Permanente which recently completed a $100 million, 62,000-square-foot medical office project. Furthermore, Fourth & U enjoys its location served by highly rated elementary, middle, and high schools supporting family demand.
Located near University Avenue and I-80/580, residents can access downtown Berkeley, Oakland, or San Francisco within 12 miles. Transit options include the North Berkeley BART station (1 mile), Amtrak (adjacent), and high Walk (95) and Bike (97) Scores. “With average Berkeley single-family homes priced at approximately $1.5 million, our team at SCP will address the affordability gap between renting and owning,” said Sack Capital Partners Managing Partner Jeff Smith. “We are going to get to work immediately on meaningful renovations to improve the apartments and the common areas – and provide hands-on professional management to ensure both a smooth process and ongoing services for the community here,” added Feinberg.
