JLL Capital Markets has arranged the sale and acquisition financing of The Dylan, a 232-unit multifamily community in Hercules. The property traded for $83.5 million, with Interstate Equities Corporation acquiring the asset from Hercules Development Partners. JLL represented the seller in the transaction and also secured acquisition financing for the buyer.
The Dylan is located along San Pablo Bay at 2200 John Muir Parkway in Hercules and was completed in 2022. The bayfront setting and regional access were highlighted as key attributes supporting investor interest in the property and the broader submarket. According to the parties involved, these factors have helped position Hercules within the East Bay as a notable location for multifamily investment.
On the equity side, JLL’s Capital Markets Investment Sales and Advisory team represented the seller. Senior managing directors Ryan Wagner, Brandon Geraldo and Matt Kroger, together with director Fatai Alashe, led the sales effort on behalf of Hercules Development Partners. Their mandate covered marketing the 232-unit community and executing the disposition to Interstate Equities Corporation.
For the debt portion of the transaction, JLL’s Capital Markets Debt Advisory team arranged a $54.275 million acquisition loan for the buyer. The financing was structured as a five-year loan provided through Freddie Mac, with JLL acting as intermediary between Interstate Equities Corporation and the agency lender. Executive managing director Charles Halladay and director Matt Cimino led the debt advisory assignment representing the borrower.
Commentary from JLL underscored that the East Bay continues to draw investors based on its relative affordability compared with core Bay Area markets, combined with robust income growth projections and limited new multifamily supply. Wagner noted that Hercules has emerged as a strong performer, citing its waterfront location on San Pablo Bay and its regional connectivity as differentiators within the East Bay landscape.
The transaction at The Dylan illustrates ongoing capital flows into contemporary, institutionally marketed multifamily assets in the East Bay, with both the sale and the Freddie Mac-backed financing executed through JLL Capital Markets. While specific operating metrics such as occupancy, rents and cap rates were not disclosed, the combination of buyer demand, agency financing and commentary on supply and income trends indicates that investor focus on this part of the Bay Area remains active.
