A 232-unit apartment complex along San Pablo Bay in Hercules has changed hands for $83.5 million, in a deal that breaks a five-year drought of apartment sales in the small Contra Costa County city. Los Altos-based Interstate Equities Corporation bought The Dylan from Hercules Development Partners, paying roughly $359,914 per unit for the waterfront property at 2200 John Muir Parkway.
The sale was announced October 9 by JLL, whose Capital Markets team represented the seller. To help fund the purchase, JLL Debt Advisory arranged a five-year, $54.275 million fixed-rate Freddie Mac loan for Interstate Equities Corporation, covering roughly 65% of the purchase price, according to Capdex. That financing structure left the buyer to cover an equity gap of roughly $29.2 million before closing costs.
A Waterfront Property Built on a Master Plan
The Dylan was completed in 2022 and features five stories of podium-style construction, with 217 market-rate units and 15 below-market-rate units averaging 804 square feet, per the same account from Capdex. The property was co-developed by Ledcor Development as part of the Hercules Bayfront master plan, blending Victorian and Gold Rush architectural styling with amenities like outdoor terraces, sports lounges, courtyard fire pits, and a bike repair shop.
Sitting near Interstate 80, the complex offers drive times of about 25 minutes to Oakland and Walnut Creek and 35 minutes to downtown San Francisco, according to JLL. That regional connectivity, paired with limited new supply, appears to be paying off for ownership: at the time of sale, The Dylan maintained a physical occupancy rate of 95.3%, according to Yardi Matrix data reported by Multi-Housing News.
First Apartment Trade in Hercules Since 2021
As GlobeSt reports, the $83.5 million sale marks the first apartment property transaction in the Hercules submarket in five years, following the sale of The Exchange, which was converted into middle-income affordable housing. JLL commercial real estate analytics also found that no new apartment projects are currently under construction in Hercules, creating a constrained supply pipeline that could support continued occupancy and rent growth for existing properties like The Dylan.
The deal stands out against a broader slowdown in regional multifamily activity. San Francisco Bay Area multifamily sales volume reached $509 million across 14 deals in the first five months of 2026, down from $958 million during the same period in 2025, per the Yardi Matrix figures cited by Multi-Housing News. Even so, large single-asset trades like The Dylan continue to draw institutional interest where occupancy is strong and competition is scarce.
Buyer With a West Coast Focus
Interstate Equities Corporation is described as a real estate investment manager focused on West Coast apartment properties, and the firm previously took part in Bay Area joint venture acquisitions earlier in 2026, according to the Multi-Housing News report. The purchase of The Dylan adds a modern, high-occupancy waterfront asset to that West Coast portfolio in a submarket where such opportunities have been rare.
