Several of our clients are seeking purchase properties from exchanges they are executing now. This means they are motivated to buy now, even though the market is somewhat constrained for buyers. A good opportunity if you want to sell.
And some of our clients have decided to sell into this market, including one who is selling his 220-bed student housing asset in Berkeley for over $30 million. Another has decided to sell his North Bay property for $10 million.
A year ago, both of these properties were available off-market at low market cap rates. Now (assuming 75% LTV interest-only loan) they are selling at 10% and 15% cash-on-cash return, respectively. What about the supposedly tight market for sales? Sometimes it takes a serious offer to get a deal done.


• The Berkeley Rent Board supports tenant buy-outs

• You can usually get more total rent by charging for utilities that the landlord otherwise would pay for, even trash collection and landscape maintenance

• Water and utility districts are offering large rebates for energy and water saving measures

• Buyers are willing to purchase “soft-story” buildings again because retrofit costs are better understood