City officials say a recent property sale in Berkeley will boost the city’s economic development and add more funds to the city’s budget.
Library Gardens, an apartment complex situated between Berkeley Public Library and Berkeley High School on Kittredge Street, was sold in June to New York-based investment management company BlackRock, said John DeClercq, senior vice president at Equity Management Group, the real estate company that previously owned the property.
Wendy Cosin, the city’s deputy planning director, said the sale of the property increases the value of the property and adds funds to the city budget through property and transfer taxes.
"The city gets revenue when property is sold. (It) helps to balance our budget," she said.
Gail Feldman, the city’s senior management analyst, said Library Gardens was sold for $75 million, and the city acquired $1 million in transfer tax.
This revenue will go to city services including economic development, public safety programs, health programs and youth programs, Feldman said. Revenue from property sales goes towards one-time city projects because it is not a steady source of revenue.
"These are one time expenditures. (We) can’t expect it to be available in future years," she said.
Earlier in the year, Panoramic Management sold seven apartment complexes, generating $8 million in revenue for the city.
DeClercq said the sale shows that national and local businesses are willing to invest in the Berkeley community.
"(The businesses) believe (Berkeley) is really valuable. (They) want to participate. They are going to be committed," DeClercq said.
Library Gardens, previously a parking garage, was turned into a 176-unit apartment complex under the ownership of Equity Management Group, DeClercq said.
Derek Helgeson, regional director of BlackRock for the region covering California, said BlackRock does not plan to make any changes to Library Gardens and plans to finish leasing the property.
Helgeson said the company hopes to become a long-term owner of the property in Berkeley.
"We look at Berkeley as a very stable and strong market, with a good future," he said.
Contact Chang Cai at ccai@dailycal.org. |
