"The Dwight apartment complex in downtown Berkeley was bought by an East Bay real estate investment firm that seeks to create affordable housing for the region's workforce. An affiliate of Riaz Capital paid $37.8 million for the seven-story building at 2121 Dwight Way, according to documents filed on Sept. 5 with the Alameda County Recorder's Office. The purchase price was about 20% below the property's value in January, as calculated by the Alameda County Assessor's Office."
"The East Bay apartment market is experiencing a bout of weakness in part because job growth is tepid at a time when apartment development has outpaced demand, according to a report produced by commercial real estate firm Marcus & Millichap regarding the April-through-June second quarter of 2025. In recent years, apartment development has been concentrated in the Oakland-Berkeley area, Marcus & Millichap stated in its report. The brisk pace of production of new apartment units has triggered higher vacancies, according to the report."
An affiliate of Riaz Capital purchased the seven-story, 99-unit Dwight apartment at 2121 Dwight Way in downtown Berkeley for $37.8 million, or $381,600 per unit. The purchase price was roughly 20% below the property's January assessed value. The East Bay multifamily market has weakened as apartment development, concentrated in Oakland-Berkeley, has outpaced demand, producing an average of about 2,100 annual deliveries over the past five years. Elevated vacancies (7.1% as of March 2025 versus a 2010-2019 average of 4.1%) have pressured rents, strained owners' ability to repay mortgages, and led to below-assessment sales, delinquencies, and foreclosures.
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