BERKELEY — An area real estate investment firm has bought a Berkeley apartment complex in a deal that’s expected to lead to upgrades for the property.
An affiliate of Sack Capital Partners paid $52.3 million for the 171-unit complex at 2020 Fourth St. known as Fourth & U, according to documents filed on Sept. 19 with the Alameda County Recorder’s Office.
Fourth and U, a 171-unit apartment complex at 2020 Fourth Street in western Berkeley. (Sack Capital Partners)
The five-story property includes 15,000 square feet of retail in eight ground-floor spaces at the corner of Fourth and Addison streets.
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“We see great opportunity to improve this underappreciated property in Berkeley,” said David Feinberg, a Sack Capital managing partner. “Sack Capital will reinvest and drive performance through renovations to both apartment residences and exterior areas, as well as an accelerated retail leasing plan.”
Fourth & U offers large floor plans. One-bedroom units average 706 square feet and two-bedroom, two-bath units average 1,108 square feet. Built in 2010, the apartment complex originally was a condominium hub.
Sack Capital intends to provide on-site property management. Previously, the site was managed remotely.
The new owner hopes the acquisition will provide it with an opportunity to tackle housing cost challenges in Berkeley.
“With average Berkeley single-family homes priced at approximately $1.5 million, our team at Sack Capital will address the affordability gap between renting and owning,” said Jeff Smith, a Sack Capital managing partner.
With the recent deal, Sack Capital Partners has widened its purchases of apartment complexes in the Bay Area. On Aug. 29, it paid $52 million for the 164-unit Fountain Park apartment complex in San Jose. San Mateo-based Essex Property Trust, acting through an affiliate, sold the property.