Downtown Berkeley apartment complex bought by East Bay investor

BERKELEY The Dwight apartment complex in downtown Berkeley was bought by an East Bay real estate stake firm that seeks to create affordable housing for the region s workforce An affiliate of Riaz Capital paid million for the seven-story building at Dwight Way according to documents filed on Sept with the Alameda County Recorder s Office The purchase price was about below the property s value in January as calculated by the Alameda County Assessor s Office The deal fits a pattern of weakening real estate values for East Bay apartments including Oakland and Berkeley multifamily housing properties The price paid per unit is in line with other current purchases The Dwight which has -units was bought for a unit The East Bay apartment field is experiencing a bout of weakness in part because job rise is tepid at a time when apartment evolution has outpaced demand according to a analysis produced by commercial real estate firm Marcus Millichap regarding the April-through-June second quarter of In fresh years apartment maturation has been concentrated in the Oakland-Berkeley area Marcus Millichap stated in its review The brisk pace of production of new apartment units has triggered higher vacancies according to the record An average of annual deliveries over the past five years has led to an elevated vacancy rate of as of March well above the average from to in the Oakland and Berkeley area Marcus Millichap disclosed The higher vacancy rates have weakened rental levels which in turn has posed financial challenges for apartment owners that are attempting to repay mortgages As a outcome various apartments are being sold at prices well below their assessed values Other properties have endured loan delinquencies or even foreclosures