CASE STUDY 2701 DURANT

The Opportunity:

Within steps to the UC Berkeley campus, and in a heavily supply constrained market that sees very few transactions of this size, 2701 Durant is a once in a generation opportunity. The property has not traded hands over the past 5 decades. Due to a recent passing in the last family member who owns the property, her late husband who has inherited the asset wants to exit. The remaining 70-year-old owner self manages the property without professional management, and we see great upside in both the operational and financial repositioning of the asset. Still in its original 1926 condition, the value of this property resides in its bones, and offers significant value-add potential to capture unmet demand for tasteful modern luxury housing. By implementing strategic value-add improvements and specialized operational excellence, the path forward is clear to produce a significant return on investment.

The Challenge:

COVID. 18-month Switchgear lead time. Global Supply Chain Issues. PG&E Delays. Displaced Residents. New Mat Slab and Foundation Replacement. Sequencing Shoring Plan. Revised city regulations. Changing Rental Dynamics. Material Shortages. Evening and weekend shifts. One challenge after another, our team demonstrated relentless persistence to find solutions and bring this heavy “value-add” project to life. This project required multiple pivots, including redesigning the entire building plans to convert up to 90% single occupancy bedrooms while we waited through prolonged delays of receiving our electrical switchgear equipment and required us to book same-day flights to pick up specific electrical equipment. With permitting starting in early 2022, we commenced construction in May 2022 with a complex foundation and mat slab replacement involving simultaneous shoring of the entire existing 3-story building above and gutting the property to studs to replace every building system. We completed everything within 15 months by August 2024, just days before students moving in. Preserving the historical charm and character of this 1919 building included exterior stucco refinishing and refinishing interior metal guardrails while integrating modern energy-efficient, water-efficient, and enhanced building systems and materials. Our team also constructed two of the largest Additional Dwelling Units (ADUs) in the history of Berkeley's new ADU legislation, which included structural steel beams and metal work, bringing 4,000 SF of new residential space to Berkeley. Despite these challenges, our team successfully achieved 100% occupancy and secured the highest rental rates per square foot in the submarket, outperforming even many new development projects.

The Execution:

The Polaris transformation is the most notable and intensive value-add rehab projects Valiance capital has undertaken. The before and after photos show just how much work and effort was put into this project. While this project did not come without its challenges, it is a testament to the hard work of the Valiance team and our business partners. The Polaris is a fan favorite among students due to its location, unit finishes, and curb appeal.