Why Berkshire Hopped Back on the Oakland Bandwagon
An affiliate of Boston-based Berkshire Group just bought 901 Jefferson, a 75-unit Class-A property in Oakland. CIO David Olney tells Bisnow the company has been active in the Bay Area for years, and has owned in Oakland before. (His city just beat out S.F. for the Olympic bid, but he's making us less annoyed by making an Oakland comeback.) His acquisition strategy for the Bay Area for the rest of the year is the same as the company's overall national strategy: focusing on core, core-plus, value-add and development investment opportunities in major markets with strong underlying fundamentals.
David thinks Oakland will see both population and employment growth in the near future, making the city an attractive place for the company. He's seeing rental demand driven by population and job growth in the Bay Area, with both employers and residents opting for more affordable office and residential pricing in Oakland relative to S.F. Downtown Oakland's restaurant and nightlife scene is on the rise near public transit--but at a lower price point. Locally, Berkshire's affiliates own and operate some well-known apartment complexes including Aire and The Enclave, both in San Jose, and Ivy Hill in Walnut Creek.
