Multifamily community in Hercules trades for $83.5M

• JLL Capital Markets arranged the $83.5 million sale of The Dylan, a 232-unit apartment community in Hercules, California
• Interstate Equities Corporation acquired the asset from Hercules Development Partners
• JLL also arranged a $54.275 million acquisition loan through Freddie Mac

SAN FRANCISCO, Oct. 9, 2026 – JLL Capital Markets announced today that it has arranged the $83.5 million sale and $54.275 million financing of The Dylan, a 232-unit apartment community in Hercules, California.

JLL represented the seller, Hercules Development Partners, in the sale of the asset to Interstate Equities Corporation and arranged the five-year acquisition loan through Freddie Mac.

Completed in 2022, The Dylan is a five-story apartment community offering residents 217 market-rate units and 15 below-market-rate units. The property features a diverse unit mix of studios, one- and two-bedrooms, averaging 804 square feet per unit. On-site amenities include a lounge with community kitchen; a sports lounge featuring darts, billiards and foosball; a high-performance fitness center, a resident courtyard featuring BBQ and fire pit areas; and bike storage with a repair station.

The property is strategically located along San Pablo Bay at 2200 John Muir Parkway, providing residents with a distinctive waterfront lifestyle while maintaining excellent connectivity to major Bay Area employment centers. The location offers convenient access to I-80, connecting residents to Oakland (25 minutes), San Francisco (35 minutes) and Walnut Creek (25 minutes).

The Hercules submarket has demonstrated strong fundamentals with limited new supply in the development pipeline. No new projects are currently under construction in Hercules, positioning The Dylan to capitalize on continued demand for quality rental housing in the region.

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.

"The East Bay continues to attract significant investor attention due to its relative affordability compared to core Bay Area markets, robust income growth projections and limited new supply," said Wagner. "Hercules, with its unique waterfront position and excellent regional connectivity, has emerged as a standout performer. This transaction reinforces that investors recognize the long-term value proposition of high-quality multifamily assets in this dynamic, supply-constrained market."

"The financing we arranged through Freddie Mac provides the buyer with attractive long-term, fixed-rate debt that supports their business plan," said Halladay. "The strong fundamentals of the asset and market enabled us to secure highly competitive loan terms for Interstate Equities Corporation."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients, including investment sales and advisory, debt advisory, M&A and corporate finance, loan sales, equity & fund placement, net lease, derivative advisory and energy & infrastructure advisory. JLL Capital Markets has more than 3,000 specialists worldwide with offices in nearly 50 countries.

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JLL (NYSE:JLL) is a leading global commercial real estate services and investment management company with annual revenue of $26.1 billion, operations in over 80 countries and a global workforce of more than 112,000 as of June 30, 2026. For over 200 years, clients have trusted JLL, a Fortune 500^® company, to help them confidently buy, build, occupy, manage and invest across a variety of industries and property types, including office, industrial, hotel, multi-family, retail and data center properties. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY. Powered by rich global datasets and leading technology capabilities, we provide coordinated, end-to-end delivery of real estate services for a broad range of global clients who represent a wide variety of industries. Through LaSalle Investment Management, we invest for clients on a global basis in both private assets and publicly traded real estate securities. For further information, visit jll.com.

Since 1981, Interstate Equities has been investing in, managing, and transforming multifamily apartments across California and the Seattle region. The company delivers thoughtfully designed living environments to its residents and superior, risk-adjusted returns to its investors.