2298 Durant LP — Investment Offering

Executive Summary

The Opportunity

Valiance Capital (the "Sponsor") controls 2298 Durant Ave, an 8,460-square-foot site located one block south of the UC Berkeley campus, directly adjacent to university residence halls, Greek life, and the vibrant Telegraph Avenue retail corridor. The property sits in one of the most sought-after student housing locations in the UC Berkeley market.

The project is designed as a Class A purpose-built student housing development comprising approximately 50,000 square feet across seven stories, with 45 units and 183 beds. The building will feature 96.2% single-occupancy bedrooms, a premium rooftop lounge, indoor amenity space, outdoor fitness facilities, study rooms, a welcoming lobby, and fully furnished units tailored to the needs of today's students.

We are now raising the second tranche of equity, providing Investor B the opportunity to invest following entitlement approval, targeted for September 2026. By entering the project after the entitlement phase is complete, Investor B avoids the project's primary entitlement risk and benefits from a significantly de-risked investment profile relative to earlier investors. Capital invested at this stage will remain in the project through vertical capitalization, construction, and lease-up, participating in the value creation generated throughout development and stabilization. An exit is currently projected for January 2030. As the project advances toward vertical development, this equity raise represents the final opportunity for Valiance investors to participate in this project.

Local Expertise

Asymmetric, market-specific experience and relationships across new construction, redevelopment, and operations in Berkeley.

Strong Land Basis

Acquired off-market — the Sponsor secured the land site well below market.

Premium Product

96.2% single-occupancy private bedrooms in a market that is predominantly shared double-occupancy.

Lease-First Location

UC Berkeley houses only 27% of students — the most undersupplied UC campus. Just a 0.51% market penetration is needed to stabilize.

Property Summary
Units	45
Beds	183
Land Size (SF)	8,460
Gross Buildable (SF)	49,950
Net Rentable (SF)	42,245

Project Overview
Total Development Budget	$44,204,246
per Unit	$982,317
per Bed	$241,553
Terminal NOI	$3,060,312
Terminal Cap Rate	5.25%
Terminal Sale Value	$56,434,924
per Bed	$308,388

Investment Overview

Financial Overview

A combined Net Investor B IRR of 20.2% and 1.76x equity multiple over a ~40-month investment timeline. Projecting a 10% net IRR for the entitlement phase (Phase I) and a 24% net IRR for vertical development (Phase II). Approximately $1.7M of the Investor B equity allocation remains available.

20.2%

Combined Net IRR

Investor B, ~40-mo hold

1.76x

Equity Multiple

Net to Investor B

30.1%

Project-Level IRR

1.79x project multiple

6.7%

Untrended YoC

Levered yield on cost

Investment Overview — Vertical (Phase II)
Construction Duration	18.5 Months
Construction Start	October 2027
Sale / Exit	January 2030
LP Equity Investment (Institutional Partner)	$7,406,350
GP Equity (Horizontal + Investor B)	$7,743,766
Hold Period (Months)	28
Untrended Yield on Cost (levered)	6.7%
Underwritten Exit Cap Rate	5.25%
Untrended Development Spread	1.45%
Project Level IRR	30.1%
Project Level Equity Multiple	1.79x
LP Net IRR	24.82%
LP Net Equity Multiple	1.63x

Project Scope — Quick Numbers
Building Statistics
Total Units	45
Total Beds (96.2% Single Occ.)	183
Gross Building SF	49,950
Avg. Unit Size (NRSF)	912 SF
Stories	7
Project Costs
Total Project Cost	$44.2M
Hard Costs	$19.1M
Hard Cost / GSF	$382
Rental Income
Annual Rental Potential	$4,350,576
Avg. Rent / Bed (Single Occ.)	$2,025
Stabilized NOI	$2,958,956

Terminal Sale Value applies the 5.25% residual cap rate — loaded for post-sale property tax reassessment (~1.21%) — to forward-12-month NOI before property tax. Under California reassessment, a buyer underwrites property taxes on the purchase price, so headline NOI ÷ cap rate does not equal the sale value directly. Returns are targets only and are not guaranteed. Actual results may differ materially. See disclaimer below.

Exterior Renderings

The Vision

Floor Plans

45 units ranging from 2- to 6-bedroom layouts, 96.2% single bedrooms, topped by a Level 7 amenity floor with a premium roof deck and interior fitness lounge.

Level 2-6 typical floor plan — Level 2–6 Typical

Investment Opportunity

Two-Phase Execution

Investor B enters the project following entitlement approval, targeted for September 2026, eliminating the project's primary entitlement risk prior to capital deployment and resulting in a significantly de-risked investment profile.

Phase 1 · Horizontal

Entitlement

Submit permit application with legislative protections of SB 330, AB 130, and HAA, structured as a State Density Bonus-compliant project to maximize developable area. — Completed
Leverage the 2024 Berkeley Southside District up-zoning provisions to capture additional density and enhance project value. — Completed
Execute design, entitlement, and building permit approval of a 7-story, ~50,000 SF, 45-unit, 183-bed mid-rise on the 8,460 SF site.
Investor B equity funds the remaining cost to complete architectural and construction documents following entitlement approval, carrying the project through building-permit submittal.
Upon building-permit approval (~Q4 2027), contribute the entitled land at a stepped-up equity basis into a Development JV to recapitalize the site.

Phase 2 · Vertical

Development

Vacate and demolish the existing commercial office building.
Secure an institutional-quality development partner and enter a Co-GP JV to secure debt and equity.
Enter a new Master JV with an institutional or family-office equity LP to capitalize vertical development.
Secure a debt provider for construction financing.
Enter into a GMP contract with an institutional-quality GC.
Develop the property over a 20-month period.
Lease up and secure permanent financing upon stabilization in 2029.

Project Schedule

Development Timeline

Pre-development commenced in January 2024. Entitlement approval is targeted for September 2026, representing an approximately 10-month entitlement process utilizing SB 330, the Permit Streamlining Act, AB 130's CEQA exemption provisions, and the Housing Accountability Act. Construction is anticipated to begin in Q4 2027, with project completion projected for Q2 2029, positioning the property for delivery ahead of the Fall 2029 academic year.

Mar 2026

First Application Filed

Sponsor kicks off entitlements in January 2026 and submits the SB330 prelim application in March.

Mar 2026

Zoning Application Filed

Sponsor submits the full zoning application at the end of March 2026 after finalizing schematic design drawings.

Sep 2026

City Approval

Sponsor expects ZAB approval around September 2026, completing the 10-month entitlement process.

Jan 2027

Building Permits Submitted

Sponsor submits the Demolition and Building Permits at the 50% CD set in January 2027.

Aug 2027

Building Permits Approved

Building Permit approval lands in August 2027, with the GMAX contract secured with the selected GC by Q3 2027.

Oct 2027

Construction Begins

Sponsor begins abatement and demo, followed by vertical construction, in October 2027.

Apr 2029

Construction Complete

Sponsor executes an ~18.5-month construction schedule, completing vertical construction in April 2029.

Sep 2029

Full Occupancy

Sponsor begins pre-leasing 12 months prior to stabilization, targeted for Sep 2029.

Timing

The Cyclical Trough

Class A rents are down ~10% from peak, cap rates near a 10-year high. Construction starts at a decade low. With construction stalled, 2298 is well-positioned to ride the market rebound.

-65%

Construction starts vs 10Y avg

-35%

Under construction YoY

5.1%

Cap rate near a 10-year high

Private-market units under construction citywide for 2028 delivery

Berkeley Annual Deliveries

Citywide · 25+ unit private-market projects

2026–27 count only projects under construction or in lease-up today. Just one private-market project (~49 units) is under construction for a 2028 delivery; 2029 is 2298 Durant. Line: entitled projects that missed their expected start, plotted at approval year + the ~2-year approval-to-groundbreak lag observed in Berkeley; 2025–26 approvals (>1,400 more units) are excluded as their windows have not yet lapsed. Source: Valiance research, verified against city filings and press, Jul 2026.

Supply Funnel: Entitled ≠ Built

Citywide private-market

The 2026–28 wave (~853 units) is under construction now. Behind it sit ~2,888 approved units with no construction start — including unbuilt 456- and 599-unit approved towers — and ~2,316 more in early review. None break ground in time for a 2028–2029 delivery. The pipeline is paused, waiting for rents to justify starts.

Named Berkeley deliveries · private-market, 25+ units

2020

Jones Berkeley · The Addison (419 units)

2021

The Standard · Poets Place (434 units)

2022

Berkeley Way · Logan Park (425 units)

2023

Aquatic Ashby · 2037 Durant (409 units)

2024

The Shattuck · Ace · Kittredge (1,077 units)

2025

The Edge · Maudelle Shirek (447 units)

2026

1598 University · Valiant · ArtHaus (654 units)

2027

ArtHaus Ellsworth · 1717 San Pablo (233 units)

2028

The Ellsworth · 2248 Dwight (49 units)

2029

2298 Durant (45 units)

The Horizon

Rolling Into Recovery

Several cycle indicators are turning: concessions have narrowed from ~5% to 1.5%, vacancy is down 110 bps year-over-year, and construction starts have pulled back sharply. By 2298's 2029 opening, the 2024–2027 delivery wave should be absorbed and rents recovering off the trough.

+7%

Cumulative rent growth 2026–2029 (base case)

93%

Projected market occupancy at 2298 delivery

97%+

Valiance stabilized occupancy target

Rent Trajectory

historical + base-case recovery

Berkeley recoveries have historically averaged +2.5% to +4% CAGR out of a trough. The base case tracks the CoStar forward line into the 2029 delivery window.

Aligned to the Fall 2029 Cycle

from cyclical trough to stabilization

2026

Cyclical trough; entitlement funded

2027

Peer buildings finish lease-up

2028

No new private-market supply

2029

2298 delivers · Fall lease-up

2030

Stabilized · sale window

Pre-leasing is set to begin Sep 2028 for the Fall 2029 move-in. With an accelerated entitlement timeline, Valiance projects a spring 2029 delivery.

The bottom line: 2298 enters at a cyclical trough with a fixed land basis. It delivers into a South Campus submarket with little competing supply. The timing and the supply gap are what turn a cyclical low into an entry point.

The Advantage

The Self-Reinforced Supply Gap

Construction starts have stalled across the market. Land owners are up-zoning in hopes it will help them exit. Costs are ballooning for large developers. This market favors the agile.

Replacement Cost vs Stabilized Value

others pause — Valiance doesn't

Indexed lines, 2020 = 100: market rents (CoStar-based) vs construction cost escalation; 2026 dashed = trend extension of prior years (student-housing rates are set each September and carry into the following year). Shaded band: Valiance cost advantage — scale purchasing across 20+ properties, right-sized projects, and legislation-accelerated timelines (illustrative). Grey bars: units starting construction each year (verified deliveries shifted ~2 yrs).

In 2023, deals worked.
In 2026, deals work if you can create value.

That is what we do.

Creating Alpha

how Valiance cultivates value

α deep rolodex of local relationships gives off-market access, entitlement know-how, and city & lender connections outsiders lack. A manageable project size is right-sized to finance and build when large, capital-heavy projects can’t. An accelerated timeline is made possible when using complex legislation to gain advantage. Economies of scale across 20+ properties drive purchasing power, shared operations, and cost efficiencies. And best-in-market analytics bring data-driven underwriting and deep local-market intelligence.

The self-reinforcing loop: lower rents → fewer projects pencil → less new supply → rents can grow before paused projects re-activate. That buffer keeps the 2028–2029 window open — and 2298 delivers into it.

The Berkeley Market

UC Berkeley, Revisited

UCB Enrollment

11.6% Admit Rate

125,910 applicants

UCB Demand

73% Living Off-Campus

New supply reduces that to 68% by 2030

UCB Bedrooms

33% Single Occ. Bedrooms

2298 is 96% Single Occ. Bedrooms

2298 Location

One Block to UCB

Steps from Telegraph, dining, and transit.

2298 Capture Rate

1% of UG Private Market

183 beds with 19,000 undergrads looking for housing.

2298 Operations

Sponsor Strength

Valiance Capital averages 97% portfolio occupancy.

2298 Pricing vs On-Campus Housing

vs comparable on-campus apartments

2298 private bedroom · 2–6 bd apt ~$2,025/mo

vs Panoramic Berkeley · 4 bd (2019)$2,268/mo-11%

Annualized$1,701/mo

vs Helen Diller Anchor House · 4 bd (2024)$2,426/mo-17%

Annualized$1,820/mo

vs Enclave · 3 bd (2020)$2,478/mo-18%

Annualized$1,859/mo

Per bed, per month — private single bedrooms in shared apartments, no meal plan; the closest match to 2298’s product. UC apartment rates AY 2026–27 (9-month academic-year contract, late Aug–mid May, billed in 10 monthly installments; shown per occupancy month, with the contract total ÷ 12 shown as Annualized); 2298 rent per CIM comps.

The setup: UCB's housing expansion drives demand by concentrating more students in South Campus. Undercutting on-campus product that is further from central campus will improve visibility and accelerate leasing velocity.

The Team

Leadership

Institutional pedigree, without the institution.

Nhan T. Nguyen Le

Founder & CEO

Leads the firm's strategic vision, investment decisions, and all operating verticals. 15+ years in multifamily and student housing, having executed $320M in total project value across 40 projects.

Lucas Butler

VP — Investments

Leads acquisitions and investment, overseeing underwriting, deal structuring, and risk management. 10+ years of institutional experience ($450M personally closed); previously at Aspen Heights Partners, a $2.0B AUM firm.

Matt Brown

Director — Portfolio Management

Oversees underwriting, deal structuring, and portfolio forecasting. Former Director of Investments at Starcity and M&A banker at BofA Merrill Lynch ($3B+ in transactions). MBA with Distinction, London Business School.

Amanda Irish-Aubert

VP — Asset Management & Finance

Oversees asset management across Valiance's $350M+ portfolio (gross asset value) with 10+ years of real estate project management and consulting experience, including 8 years at HartWest as a Project Manager.

Stephane Dessus

VP — Development

Oversees value-add development and construction management. A decade of experience managing 350+ single-family repositionings in the SF Bay Area, recognized as a premier Bay Area home builder.

Shay Shore

Director — Asset Management

Oversees all operational and financial performance of the Berkeley student housing portfolio, spanning property performance strategy, capital project management, and stakeholder returns.