BERKELEY – A large apartment complex with affordable units in Berkeley has been purchased for the second time in two years, suggesting that values ââfor this type of residential property are rising.
Harriett Tubman Terrace, an apartment building at 2870 Adeline Street in Berkeley, has been bought by an alliance of groups including affordable housing organizations, documents filed with the Alameda County Recorder’s Office on October 4th.
The buyer, HT Terrace Renewal, paid $ 34.2 million for the 91-unit Harriett Tubman Terrace complex, according to the county’s real estate records.
The new owner also received $ 32.5 million in funding from Greystone Servicing Co. at the time of the purchase.
“Harriet Tubman Terrace offers senior citizens aged 62 and over or people with disabilities luxurious living at an affordable price,” reads a post on the apartment complex’s website. “We seniors live with the vitality of Berkeley.”
The main entities controlling the new ownership group for the apartments are Greentree Affordable Holdings, Pennant Housing Group, Renewal Housing Inc., and National Foundation for Affordable Housing Solutions Inc., also known as Foundation Housing, the county records show.
The seller, HT Terrace Affordable, appears to have made a modest profit on the transaction.
In 2019, HT Terrace Affordable paid $ 33 million for the Harriet Tubman apartment complex, according to the Nexis database. At the time, Greystone Servicing provided a $ 30 million loan to fund the 2019 purchase.
In a twist, some of the purchasing group’s entities – Renewal Housing and Greentree Affordable Holdings – are based in the same North Bethesda, Maryland office that is Foundation Housing’s headquarters. Renewal and Greentree are also linked to Foundation Housing. The sales group is also affiliated with Foundation Housing.
The county records indicate that the new owners intend to keep the property as affordable housing.
Coincidentally, in January 2021, an alliance of Foundation Housing and Pennant Housing paid $ 72.1 million to purchase Redwood Garden Apartments at 2951 Derby St., Berkeley. Pennant Housing is a Washington, DC-based real estate company that owns, operates, and develops affordable housing.
Redwood Garden is an affordable 169-unit apartment complex designed for seniors 62 and over. Maryland-based Arbor Realty SR provided the buyer, a group operating as Redwood Gardens Renewal, with $ 64.9 million in financing.
With relatively little opportunities for brand new developments in Berkeley, existing residential real estate in the East Bay City can attract investors.
The latest deal for Harriett Tubman Terrace appears to be a vehicle to enable a new group of investors with ties to Foundation Housing to acquire a stake in the complex.
The website of the apartment complex advertises its location as an attraction for existing and potential residents.