Berkadia has arranged the sale and acquisition financing for two neighboring multifamily communities in Castro Valley, totaling 135 units. The transaction involves a value-add portfolio comprising the Cedars and Creekside Terrace, both of which had been held by a single owner for more than 50 years.
The Cedars, an 83-unit property, changed hands at a sale price of $21.45 million. Creekside Terrace, which includes 52 units, sold for $14.1 million. Together, the two communities form a sizable multifamily footprint in Castro Valley with a combined transaction value of $35.55 million.
Senior managing director Jason Parr, managing director Scott MacDonald and director John Hansen of Berkadia San Francisco arranged the sale on behalf of Felson Companies. Felson Companies was the original developer of both communities and had served as longtime owner prior to this disposition.
On the financing side, managing director Clay Akiwenzie and director Hank Workman of Berkadia San Francisco arranged acquisition debt on behalf of San Francisco-based Prime Residential. The financing was structured as a seven-year, fixed-rate Freddie Mac loan with full-term interest-only payments, supporting Prime Residential’s purchase of the two value-add assets.
MacDonald noted that properties under single ownership for more than five decades are rare in the Bay Area and that the value-add profile of the Cedars and Creekside Terrace generated strong interest from investors. He added that Berkadia’s investment sales and mortgage banking teams worked closely together to manage a complex transaction environment and achieve what he described as an exceptional result for their client.
The change of ownership from the original developer to a new institutional buyer, supported by agency financing, underscores ongoing investor appetite for value-add multifamily opportunities in Castro Valley.
