Confidential Offering Memorandum · 2026
Hustead House
2037 Durant Avenue · Berkeley, California
Ground-up development of a 74-unit, 302-bed purpose-built student housing asset steps from UC Berkeley in a federally designated Opportunity Zone.
Total Project Cost
$56.5M
Stabilized NOI
$3.74M
Yield on Cost
6.62%
Stabilized Value
$75.4M
Avg Rent / Bed
$1,554
Executive Summary
2037 Durant Avenue represents a rare ground-up development opportunity in one of America's most supply-constrained university markets, just steps from UC Berkeley's campus.
The project combines premium student housing with a ground-floor Korean café concept, all within a federally designated Opportunity Zone offering substantial tax advantages for qualified investors.
With over 46,000 enrolled students and fewer than 11,000 purpose-built beds near campus, structural demand fundamentals support strong occupancy and rental growth over the investment horizon.
Investment Snapshot
Total Project Cost
$56.5M
$764K per unit
Stabilized Value
$75.4M
Tax-adjusted basis
Yield on Cost
6.62%
vs. 4.50% market cap
Construction Timeline
18 Mo
Target completion June 2028
Opportunity Zone
Qualified
Federal OZ designation
Construction Readiness
75%
Docs complete · permit Sep 2026
Investment Thesis
Prime Infill Location
- —Steps from UC Berkeley — Walk Score 98, Bike Score 99
- —Transit-oriented with zero parking requirements
- —Berkeley's primary Southside student district
- —Direct proximity to campus, BART, and Telegraph Ave
Structural Supply Shortage
- —Strict zoning and 4–6 year entitlement timelines
- —Community opposition constrains development pipeline
- —Heavy reliance on non-purpose-built shadow market housing
- —~4,000 bed shortage projected near campus by 2028
Opportunity Zone Advantages
- —Federally designated Opportunity Zone
- —Capital gains deferral through Qualified Opportunity Fund
- —Tax elimination on appreciation if held 10+ years
- —Enhanced clarity with QOZ 2.0 program renewal
Market Dynamics
46,000+
Enrollment
~28% growth over decade
~25%
Campus Coverage
~75% off-campus demand
~4,000
Bed Shortage
Projected by 2028
98
Walk Score
Walker's Paradise
Demand Fundamentals
UC Berkeley's enrollment exceeds 46,000 students with continued growth expected. On-campus housing covers only ~25%, pushing tens of thousands into Berkeley's private housing market annually. Purpose-built rents remain below comparable on-campus options.
Supply Constraints
Strict zoning, 4–6 year entitlement timelines, and community opposition have severely constrained new development. Only ~11,000 purpose-built beds exist near campus today. The limited pipeline ensures persistent undersupply through the investment horizon.
Location & Connectivity
Proximity
- 0.2 mi
UC Berkeley Campus
10 min walk · 4 min bike
- 98 / 99
Walk / Bike Score
Walker's Paradise
- 0.4 mi
Downtown Berkeley BART
6 min walk · 2 min bike
Site Transformation
Drag to compare existing condition vs. proposed development
Project Overview
Residential Units
74
Total Beds
302
Total GSF
76,800 SF
Net Residential
58,287 SF
Retail
1,600 SF
Construction
Type IA / IIIA
Stories
8
Parking
Transit-Oriented
Zoning
C-DMU Buffer
Site Area
12,501 SF
Entitlements
Fully Entitled
Efficiency
75.9%
Design & Architecture
Project Visualization
Unit Mix
| Unit Type | Units | Bedrooms | Beds | Baths |
|---|---|---|---|---|
| Studio | 1 | 1 | 1 | 1 |
| 2 Bedroom | 10 | 20 | 20 | 10 |
| 3 Bedroom | 59 | 177 | 265 | 87.5 |
| 4 Bedroom | 4 | 16 | 16 | 8 |
Unit Design & Living Experience
Representative Floor Plans
Studio
1 Bed / 1 Bath · 351 SF
$3,200/bed
2 Bedroom
2 Bed / 1 Bath · 505 SF
$2,350/bed
3 Bedroom
3 Bed / 1.5 Bath · 758 SF
$1,715/bed
4 Bedroom
4 Bed / 2 Bath · 876 SF
$2,200/bedIn-Unit Laundry
Washer/dryer in every unit
Smart Entry
Keyless access throughout
High-Speed Internet
Fiber internet included
Full Kitchens
Stainless steel appliances
Floor-to-Ceiling Glass
Maximizing natural light
Luxury Vinyl Plank
Premium flooring
Quartz Countertops
Modern cabinetry
Energy Efficient
Sustainable fixtures
Business Plan
Q2–Q3 2026
Finalize Documents
Complete construction documents. Secure building permit.
Q3–Q4 2026
Site Preparation
Demolition and foundation work for vertical construction.
Q4 2026–Q2 2028
Vertical Construction
18-month construction. Type IA/IIIA 8-story mixed-use.
Q1–Q2 2028
Pre-Leasing
Pre-leasing begins 6 months prior. Target Fall 2028 move-in.
Q3–Q4 2028
Stabilization
95%+ occupancy within first academic semester. Café opens.
Financial Summary
Yield on Cost
6.62%
Stabilized NOI / Total Project Cost · +212 bps vs. market cap
Stabilized NOI
$3.74M
Year 1
Total Project Cost
$56.5M
$764K / unit
Stabilized Value
$75.4M
Tax-adjusted
Exit Cap Range
4.25–5.00%
Market comps
Project-level metrics · Detailed returns available in the investor portal
Capitalization
Sources
Uses
Sponsor & Team
Jonathan Yi
Project Sponsor
Former high-tech product manager. Licensed real estate professional. Over 25 years of entrepreneurial leadership in business development and real estate ventures.
Janice Lee
Project Sponsor
Former stockbroker with Series 7 license. Experience at PaineWebber and Thomas Weisel Partners. Licensed real estate professional since 2004.
Aran Kaufer
Construction Manager
Licensed architect with 27+ years in multifamily residential construction, primarily in Berkeley. Expert in local permitting and housing development.
Chris Porto
Development Manager
Real estate development entrepreneur with 10+ years experience. Former Deloitte consultant. Capital advisory expertise across construction loans, preferred equity, and JV equity.
General Contractor — West Builders
West Builders has built more than 50% of all new construction projects in Berkeley. Led by Ricardo Zamorano (President) and Dave de Jong (VP, Pre Construction).
Property Manager — Asset Living
Currently managing two new lease-ups in Berkeley. Engaged to generate the operating pro forma.
Key Risks & Mitigants
Construction Cost Escalation
GMP contract with West Builders. Construction documents 75% complete with active value engineering.
Entitlement & Permitting
Fully entitled with all discretionary approvals secured. Building permit targets late September 2026.
Lease-Up & Occupancy
Severe structural undersupply with ~4,000 bed shortage projected by 2028. Asset Living engaged with two active Berkeley lease-ups.
Capital Markets Environment
Conservative senior loan at ~53% LTC. OZ equity structure provides built-in tax incentive independent of rate environment.
Investor Portal
Access the Full Investor Analysis
Detailed underwriting assumptions, scenario analysis, and gated due diligence materials are available in the investor portal