ACRES Funds $10.5M for Student Housing Development in Berkeley, CADECEMBER 05, 2022
Loan to fund the acquisition and pre-development of proposed 12,792 SF Student Housing Project
BERKELEY, CA (DECEMBER 5, 2022) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a nationwide commercial real estate middle-market lender, has originated a $10.5 million loan to fund the acquisition and pre-development of proposed student housing development 2538 Durant Avenue located in Berkeley, California (the “property”). The loan is provided to Valiance Capital, a locally based real estate development and investment management firm with primary focus on multi-family and student housing.
“Located just one block from UC Berkeley, 2538 Durant Ave is providing an essential student housing option to the area,” said ACRES Chief Executive Officer and President Mark Fogel. “We are confident that Valiance Capital’s ‘home court’ advantage of being based in Berkeley and their expertise in developing student housing will ensure the project’s success”
The proposed development will replace the existing 12-unit apartment building with an eight-story student housing complex with a total of 270 beds across 83 units, along with 5,000 square feet of commercial space at the ground level. Centrally located, 2538 Durant Ave is a short commute to the San Francisco Financial District as well as the Oakland International Airport and with access to the Downtown Berkeley BART station.
“2538 Durant is going to help transform the Berkeley city skyline and provide an incredible opportunity to address a substantial housing need for students”, says Nhan Nguyen Le, Principal & Founder of Valiance Capital. “The ACRES team believed in our vision and provided us with a certainty of execution when it was needed the most as we navigated a shifting market. We are excited to work with ACRES on this incredibly needed housing project and proud to offer residents and students of UC Berkeley a new, high-quality housing option in an irreplaceable location.”
The loan was arranged by Jeffrey Eliason and Leland Ortega of Highland Realty Capital and Chris Hetzel of ACRES’ Philadelphia office originated the loan.