B
ERKELEY — A Berkeley apartment complex has been sold for $32 million, a 42% drop from its assessed value and 38% less than the previous purchase price. The sale of Higby, a 98-unit five-story building at 3015 San Pablo Avenue, is the latest sign of weakening values in the East Bay's multifamily residential market.

    Higby was built in 2015 and had been valued at $55.5 million as recently as January 2024. However, after falling into foreclosure in August 2024, its value plummeted to $36.2 million. The sale price of $32 million is a significant decline from the original purchase price of $51.5 million in 2019.

    This transaction follows a pattern of declining property values seen in other East Bay cities. In Oakland, a 206-unit housing tower was taken back by its lender due to a delinquent loan, while The Logan apartment complex was foreclosed on after its owner defaulted on payments. A similar trend is also evident in Emeryville, where the Bayview apartment complex was seized through a deed in lieu of foreclosure procedure.

    The decline in property values has significant implications for public agencies that rely on revenue from commercial properties. If real estate values continue to soften, it could crimp crucial revenue streams for cities, counties, and regional agencies, as well as school districts.