A New Model for Bay Area Homeownership: Inside Berkeley's TIC + ADU Hybrid Property

For buyers priced out of traditional single-family homes in Berkeley, California, a innovative property at 1516 Blake Street offers a modern solution. This recently transformed tenants-in-common (TIC) arrangement paired with a new accessory dwelling unit (ADU) creates three separate, affordable ownership opportunities on one parcel of land. This hybrid model, while common in San Francisco, is emerging in the East Bay as a practical response to the state's affordability crisis, providing modern living spaces below the area's median listing price.

What is a Tenants-in-Common (TIC) + ADU Hybrid Model?

A tenants-in-common (TIC) agreement is a form of shared property ownership where multiple parties hold individual, undivided interests in a single parcel of real estate. Unlike a condominium, TIC owners share title to the entire land and building(s). At 1516 Blake Street, this model was combined with the construction of a new, detached ADU to create a three-unit compound.

The property's evolution began with a 1925 Mediterranean-style home. The primary residence was first split into two units. The project culminated with the addition of "Unit A," a brand-new, two-story ADU in the backyard. This TIC + ADU hybrid maximizes land use and increases housing density, aligning with California's push for infill development—building new housing on existing urban lots.

What Does This Berkeley TIC Property Offer Buyers?

The newly completed Unit A, now on the market for $995,000, presents a compelling case for this ownership model. The 1,154-square-foot residence features:

• Two bedrooms and two bathrooms.
• An open-concept living, dining, and kitchen area.
• A private deck and yard, offering a degree of privacy uncommon in shared ownership setups.
• Sustainable features, including a split heat-pump and AC system, owned solar panels, and natural finishes.

This unit is strategically priced below Berkeley's current median listing price of approximately $1.1 million, according to recent market data. The unit's design provides the feel of a standalone home with the community benefits of a shared property.

How Does the TIC Model Address Bay Area Affordability?

The San Francisco Bay Area consistently ranks among the least affordable housing markets in the United States. Projects like 1516 Blake Street, developed by Berkeley-based New Avenue Homes, aim to create more attainable price points by dividing ownership costs. The overall property transformation unfolded as follows:

This approach demonstrates how infill development can unlock long-term value from existing properties. By creating multiple units, the project caters to a wider range of buyers, from investors to those seeking a primary residence.

Is a Tenants-in-Common Agreement Right for You?

While innovative, a TIC arrangement requires careful consideration. It is not the equivalent of a condominium and often involves a shared mortgage and a formal agreement outlining rules for maintenance, expenses, and dispute resolution. Based on our experience assessment, this model is best suited for buyers who are comfortable with a collaborative ownership structure and are primarily motivated by gaining entry into a high-cost market.

Prospective buyers should secure legal and financial advice to fully understand the TIC agreement's terms. The potential for community and a more affordable purchase price must be weighed against the complexities of shared ownership.

What is the Future of This Housing Model in the East Bay?

Listing agent Jodi Nishimura notes that while TIC ownership is common in San Francisco, it remains "unusual" in the East Bay. However, as demand for housing continues to outpace supply, such models are gaining traction. The success of 1516 Blake Street highlights a viable path for increasing housing stock without large-scale new construction.

The key takeaway is that hybrid models like TIC + ADU can effectively create more housing options. This property offers a sense of community while maintaining privacy, is close to local amenities, and provides a modern, efficient living space. As cities grapple with limited space, such projects may become a more frequent feature of the Bay Area's housing landscape.

For buyers, the critical steps are to thoroughly review the TIC agreement and secure independent professional guidance to ensure this non-traditional ownership model aligns with their financial and lifestyle goals.