Berkeley affordable apartments land buyer in $34 million deal – Silicon Valley

BERKELEY — A big apartment complex of affordable units in Berkeley has been bought for the second time in two years in a deal that suggests values are rising for these types of residential properties.

Harriett Tubman Terrace, an apartment property at 2870 Adeline St. in Berkeley, has been bought by an alliance of groups that include affordable housing organizations, documents filed on Oct. 4 with the Alameda County Recorder’s Office show.

The buyer, HT Terrace Renewal, paid $34.2 million for the 91-unit Harriett Tubman Terrace complex, according to the county property records.

The new owner also obtained $32.5 million in financing from Greystone Servicing Co. at the time of the purchase.

“Harriet Tubman Terrace offers luxurious apartment living at an affordable price to seniors 62 years or older or for persons with a disability,” according to a post on the website for the apartment complex. “We are senior living with the vitality of Berkeley.”

The principal entities that control the new ownership group for the apartments are Greentree Affordable Holdings, Pennant Housing Group, Renewal Housing Inc. and National Foundation for Affordable Housing Solutions Inc., which is also known as Foundation Housing, the county records show.

The seller, HT Terrace Affordable, appears to have realized a modest profit through the transaction.

In 2019, HT Terrace Affordable paid $33 million for the Harriet Tubman apartment complex, according to the Nexis database. At that time, Greystone Servicing provided a $30 million loan to finance the 2019 purchase.

In a twist, some of the buying group’s entities — Renewal Housing and Greentree Affordable Holdings — are based at the same North Bethesda, Maryland office that is the headquarters location for Foundation Housing. Renewal and Greentree also have an affiliation with Foundation Housing. Plus, the selling group has an affiliation with Foundation Housing.

County records show that the new owners intend to keep the property as an affordable housing site.

By coincidence, in January 2021, an alliance of Foundation Housing and Pennant Housing paid $72.1 million to buy Redwood Garden Apartments, located at 2951 Derby St. in Berkeley. Pennant Housing is a Washington, D.C.-based real estate company that owns, operates and develops affordable residences.

Redwood Garden is a 169-unit affordable apartment complex that is designated housing for seniors 62 years and older. Maryland-based Arbor Realty SR provided $64.9 million in financing to the buyer, a group operating as Redwood Gardens Renewal.

With opportunities for brand-new development relatively scarce in Berkeley, existing residential properties in the East Bay city can entice investors.

The latest deal for Harriett Tubman Terrace appears to be a vehicle to enable a fresh crop of investors with ties to Foundation Housing to gain an ownership stake in the complex.

The apartment complex’s website touts its location as a draw for existing and prospective residents.