OAKLAND, CALIF. – Riaz Capital, a fully integrated development, construction and property management company, has acquired the Z Hotel in Oakland and will transform the 102-door hotel into workforce housing apartments with added density as part of the company’s innovative approach to the Bay Area housing crisis.
Located at 233 Broadway in Jack London Square, the property was acquired during the COVID-19 pandemic at the value price of $18.15 million. It will be transformed into high-quality micro-living studios, renting at an affordable price point for teachers, nurses, first responders and other Bay Area professionals earning between $50,000 and $120,000. The Bay Area has a shortfall of more than 400,000 units considered affordable for this income demographic.
“Riaz Capital is investing in affordable solutions for those who are considered essential workers, but have difficulty finding housing that fits their budget. There is incredible demand for moderate income housing that isn’t going away any time soon due to the massive shortfall in supply. Since this property was acquired at a good value and will serve residents who are typically unperturbed by economic cycles, this project is a win-win for tenants and our investors,” said Riaz Taplin, principal of Riaz Capital.
Riaz Capital currently has a portfolio of 1,500 units under management and 1,700 more in development, all of which offer cycle-resistant opportunities for investors and workforce housing to Oakland residents. The acquisition of 233 Broadway comes just weeks after Riaz Capital opened its third $100 million development fund, the Ozone III Fund, to raise investor capital for the expansion of the company’s portfolio.
The property, which will immediately undergo a year-long renovation, offers a prime location just two blocks from the waterfront, while also providing hospitality-level amenities such as the pool, fitness areas, a lounge and coworking spaces. The renovation will include brand new finishes and full seismic and structural upgrades, giving residents the quality and feel of a newly constructed building. Being in the heart of the Jack London Square district, residents also have access to vibrant nightlife, art galleries and museums, restaurants, and outdoor recreation.
“This property will offer a true California lifestyle, similar to what many of us remember from the television’s Melrose Place, but at a monthly rent that is roughly three-quarters of studios elsewhere in the neighborhood,” Taplin added. “At the same time, the sales prices and renovation plans will also deliver incredible value to our investors.”
Investors in all Riaz development funds support the acquisition, design and eventual management of housing that will provide new residences to thousands of Oaklanders at monthly rents below 30 percent of the area’s average monthly income.
About Riaz Capital
Riaz Capital is a fully integrated development, construction and property management company based in Oakland, California. Founded in 1977 as a design driven company, the firm is known for its urban revitalization projects, such as Artthaus Studios, that bring new life to each community. Today, the firm is focused on creating workforce housing for the Bay area that offers flexible, well designed living spaces. Currently, the company operates more than 1500 residential units and has another 1700 in development. Each of its buildings range in size from 6-127 units and provides commercial space for nearly 100 small businesses.