Interstate Equities Acquires NorCal Apartments for $84M
Completed in 2022, the property includes a mix of market rate and affordable housing.
Interstate Equities Corp. has acquired The Dylan, a 232-unit apartment community in Hercules, Calif. for $83.5 million. Hercules Development Partners sold the asset, which is located in the northern part of the San Francisco Bay Area. Two JLL Capital Markets Investment Sales and Advisory teams represented both parties in the transaction.
Completed in 2022, the Dylan is a five-story apartment community with 217 market-rate apartments and 15 affordable units. The property includes studios, one- and two-bedroom units averaging 804 square feet per unit. The community is now 95.3 percent occupied, Yardi Matrix reports.
Common-area amenities include a lounge with community kitchen, a sports lounge featuring darts, billiards and foosball and a fitness center. It also has a resident courtyard with barbecue and fire pit areas.
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Located at 2200 John Muir Parkway, the Dylan sits right along San Pablo Bay. The location also offers access to Interstate 80, connecting residents to Oakland, San Francisco and Walnut Creek.
JLL’s Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Directors Ryan Wagner, Brandon Geraldo and Matt Kroger and Director Fatai Alashe. JLL’s Capital Markets Debt Advisory team representing the borrower was led by Executive Managing Director Charles Halladay and Director Matt Cimino.
Bay Area activities
Investors traded $509 million in San Francisco multifamily assets in the first five months of 2026, according to Yardi Matrix data. That figure is a considerable slowdown from $958 million in transactions through the same period in 2025. A total of 14 assets changed hands.
In April, Ballast purchased the Three Sisters, a 110-unit portfolio of three vintage apartment buildings in San Francisco. The firm paid Flynn Family Holdings $48.5 million for the adjacent assets.
In January, a joint venture between Interstate Equities Corp. and PGIM obtained $201.5 million in financing for the acquisition of four multifamily properties totaling 574 units in Seattle and the San Francisco Bay Area. The NorCal component of the portfolio totals 474 units.
