The UC investment arm acted through affiliates to purchase a large hotel at 2121 Center Street in Downtown Berkeley. The purchase appears to be a financial investment by the University of California and not a specific expansion of the UC Berkeley Campus. As such, there are no immediate plans for conversion of the building’s use or layout.
The 331-room Marriott Residence Inn sold for significantly under its appraised value. Despite a 2023 appraisal at $218 million, the property was bought at only $175.8 million in an all-cash deal. The final price was about $531,100 a room. If compared to new construction, estimates place building costs in the range of $700,000 to $900,000 a room.
2121 Center Street Entryway, image via Google Street View
The falling value is likely due to the recent period of slower growth in the Bay Area lodging market. Many similar properties have seen dropping values, defaults, and foreclosures. However, the University of California still sees this property as a good long-term investment, with spokespersons citing its excellent location and the high profitability of the hotel’s price bracket.
The hotel is located in the heart of Downtown Berkeley, a short walk from the UC Berkeley Campus and the Downtown Berkeley BART Station. It has access to many nearby restaurants and businesses for guests to choose from, and the upper floors offer spectacular views of the San Francisco Bay and Berkeley Hills.
Sample View From Upper Stories Facing South, image via Google Maps
Subscribe to YIMBY’s daily e-mail
Follow YIMBYgram for real-time photo updates
Like YIMBY on Facebook
Follow YIMBY’s Twitter for the latest in YIMBYnews
I hope they keep the rooftop bar/restaurant… Doubt they will, but it’s a great space with good views at sunset. It would be a shame to lose that space with the change of owners.