H
awkins Way Capital has acquired the Varsity Berkeley complex, a 159-unit student-oriented apartment building in Berkeley, for $46.25 million. The six-story property, located at 2024 Durant Avenue, was sold by Cornerstone Real Estate Advisers, based in Connecticut. This deal marks Hawkins Way's fifth investment in Northern California and its largest purchase to date, with a unit price of $290,881.

    The buyer plans to integrate the complex into its Found Study brand and hand over management to FCL Management. Additionally, Hawkins Way intends to invest an undisclosed amount in renovations to enhance living conditions for students and increase affordable housing availability. However, it's unclear how this will be achieved.

    The 75,600-square-foot property sits on half an acre and has a unique layout with 24 more units than bathrooms. The tight student housing market in Berkeley has driven up demand, with monthly rent on a three-bedroom apartment reaching $9,150 in 2022. UC Berkeley provides housing for only a fifth of its students, aiming to construct rooms for 11,730 beds over the next 15 years.

    Hawkins Way Capital owns several Found Study complexes and hotels in San Francisco, including two properties in Union Square and Nob Hill. The company has $3 billion in assets under management and plans to continue expanding its presence in Northern California's student housing market.