Confidential Offering · Opportunity Zone · 2026
Hustead
House
302 beds. 0.3 miles to UC Berkeley.
A fully-entitled, purpose-built student housing development in one of America's most supply-constrained university markets — sited within a federally designated Opportunity Zone.
Yield on Cost
6.62%
+212 bps vs market cap
Total Project Cost
$56.2M
$760K / unit
Stabilized NOI
$3.73M
Year 1 stabilized
Stabilized Value
$82.8M
@ 4.50% cap
LP IRR
26.0%
2.86x equity multiple
Avg Rent / Bed
$1,554
Below all benchmarks
Executive Summary
The case for Hustead House is structural, not cyclical.
Berkeley is undersupplied by ~3,949 beds at the subject's 2028 delivery window — even after fully crediting every committed delivery. Each academic year resets a recurring leasing engine of 46,000+ students. The shortfall does not close.
01 · Demand
Structural undersupply
UC Berkeley enrollment exceeds 46,000 with durable ~2% annual growth. Only ~25% can be housed on campus. Strict zoning and 4–6 year entitlement timelines have constrained off-campus supply formation. Even fully credited through 2030, the campus-proximate market remains undersupplied.
02 · Position
Best-in-class infill location
Steps from UC Berkeley’s southern boundary at 0.3 miles. Walk Score 99, Bike Score 98. Two BART stations within a mile. The Telegraph corridor is the highest-trafficked student retail node in the East Bay — and the subject is mid-block on it.
03 · Returns
6.62% yield on cost, 212 bps spread
Total project cost of $56.2M produces $3.73M stabilized NOI — a 6.62% yield on cost with a 212 bps spread to a conservative 4.50% exit cap. LP returns target 26.0% IRR / 2.86x equity multiple over a 5-year hold.
04 · Tax
Opportunity Zone advantage
Federally designated Qualified Opportunity Zone (tract CA 4235.02). Capital gains deferral via QOF investment; 100% federal tax exemption on appreciation if held 10+ years. Materially enhances after-tax economics for institutional LPs deploying capital gains.
Market Dynamics
A flagship public university producing recurring demand against a development pipeline that cannot keep up.
46,151
UC Berkeley Enrollment
Fall 2025 · +22.8% over decade
24.7%
On-Campus Coverage
11,333 beds · structurally capped
3,949
Bed Shortfall
Campus-proximate · 2028 delivery
1,776
Shortfall — 2030
Fully-credited downside · still open
The Demand Side
UC Berkeley grew ~28% over the prior decade and proved resilient through COVID. Only ~25% of students can be housed on campus — even after People's Park (2027) and 2200 Bancroft (2030) deliver, off-campus dependency stays permanent. Each academic year resets the leasing engine.
The Supply Side
Berkeley does not produce continuous PBSH supply. Projects cluster in discrete waves separated by extended quiet periods. The 2028–2030 pipeline is highly visible and finite. Subject delivers into the structurally undersupplied 2028 window.
Location & Connectivity
Proximity
- 0.3 mi
UC Berkeley Campus
5 min walk · 2 min bike
- 99 / 98
Walk / Bike Score
Walker's Paradise
- 0.5 mi
Downtown Berkeley BART
10 min walk · 3 min bike
Site Transformation
Drag to compare existing condition vs. proposed development
Project Overview
74 units. 302 beds. 8 stories. Designed for the campus-adjacent renter.
Building Program
| Residential Units | 74 |
| Total Beds | 302 |
| Beds / Unit (avg) | 4.08 |
| Total GSF | 76,800 SF |
| Net Residential SF | 58,287 SF |
| Ground-Floor Retail | 1,600 SF |
| Net-to-Gross | 75.9% |
Site & Construction
| Site Area | 12,501 SF |
| Stories | 8 |
| Zoning | C-DMU Buffer |
| Construction Type | IA / IIIA |
| Parking | Transit-oriented · zero req. |
| Entitlements | Fully entitled |
| Opportunity Zone | Qualified (Tract CA 4235.02) |
Design & Architecture
Project Visualization
Unit Mix
14 model unit types aggregated into 4 public categories · sample rent shown per category
| Type | Units | Beds | Beds / Unit | Avg SF | Sample $ / Bed |
|---|---|---|---|---|---|
| Studio | 1 | 1 | 1.0 | 351 | $3,200 |
| 2 Bedroom | 10 | 20 | 2.0 | 505 | $2,350 |
| 3 Bedroom | 59 | 265 | 4.5 | 760 | $1,715 |
| 4 Bedroom | 4 | 16 | 4.0 | 876 | $2,200 |
| Total | 74 | 302 | 4.08 | — | $1,554 blend |
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 · 760 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
Milestones tied to model: Jan 2027 construction start · 18-month build · 3-month stabilization
Now – Q3 2026
Permitting & Final CDs
Finalize construction documents from 75% to 100%. Building permit target Sep 2026 (ministerial).
Q4 2026
Site Preparation
Demolition of existing single-story commercial structure. Foundation work and site mobilization.
Q1 2027 – Q2 2028
Vertical Construction
18-month construction per West Builders GMP. Type IA/IIIA · 8-story mixed-use.
Q1 – Q3 2028
Pre-Leasing
Pre-leasing begins ~6 months before delivery. Target Fall 2028 academic year move-in.
Q4 2028 – Q1 2029
Stabilization
95%+ occupancy through first academic semester. Korean café opens at ground floor.
Financial Profile
The numbers. Tied live to the financial model on this site.
Project Yield on Cost
6.62%
212 bps spread to 4.50% market cap
LP Pre-Tax IRR
26.0%
2.86x equity multiple · 5-yr hold
Stabilized Value
$82.8M
$274K / bed @ 4.50% cap
Stabilized NOI
$3.73M
Year 1
Total Project Cost
$56.2M
$760K / unit
Stabilized Value
$82.8M
@ 4.50% cap
Total Debt
$44.0M
76.7% LTC · 1.30x DSCR
LP Equity
$6.75M
Class A · 8% pref
All figures sourced from the live financial model on this site
View detailed returns →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
Construction loan committed at 69.3% LTC; agency permanent at 78.2% LTC sized to 1.30x stabilized DSCR (52.0% LTV at exit — LTV-bound, not cash-flow-bound). OZ equity structure provides built-in tax incentive independent of rate environment.
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financial model.
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