$30M student housing development financing secured in Berkeley

SILICON VALLEY, Aug. 7, 2024 -  JLL Capital Markets announced today that it has secured a $30 million construction financing for The Northside, a 73-unit student housing project at 1752 Shattuck in Berkeley, California.

JLL represented the borrower, Panoramic Interests in securing the loan through BHI, a full-service commercial bank that operates as the U.S. division of Bank Hapoalim.

The Northside, now under construction, is located at the highly desirable Gourmet Ghetto district and three blocks from UC Berkeley. According to a UC Berkeley study, 82% of students do not own a car, which increases the demand for housing in the area. The Northside is within easy walking distance to unique cafes, restaurants and grocery stores that typify North Berkeley and close to several public transit systems including AC Transit, Golden Gate Transit and BART.

Berkeley, California has witnessed considerable growth in its real estate market driven by strong demand and limited new supply. The average home prices in the city hover around $1.5 million, while over half of the households are renters. As a result, Berkeley consistently maintains a vacancy rate of less than five percent and has experienced stable annual rent growth of 3.5% since 2018.

The Northside, set for completion in March 2026, will offer a diverse range of studio, one-, two-, three- and four-bedroom units. Spanning an impressive 451,509 square feet, the seven-story mid-rise development will also include 1,210 square feet of commercial space. The fully furnished units will feature modern furnishings, large operable windows, hospital-grade ventilation, engineered soundproofing and nine-foot ceilings. Residents of The Northside will also enjoy amenities such as a roof deck, secured bike room, laundry rooms, lounges, co-working space and keyless entrances.

JLL Capital Market's Debt Advisory team representing the borrower was led by Senior Managing Director Jordan Angel and Managing Director Alex Witt.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients - whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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