Multifamily developer Riaz Capital launched its third construction development fund, looking to build about 1,600 residential units in Oakland Opportunity Zones. The total would double the company’s current portfolio.
The fund will seek to raise $100 million in equity, and will target developments in the federally-designated areas, according to the San Francisco Business Times.
Riaz ultimately has plans to finance 10 to 12 projects with the capital. Two of the projects are already under construction, both townhome properties. One is a 13-unit development at 1705 Mandela Parkway and the other is an 8-unit complex at 2618 Martin Luther King Jr., according to the report.
The Oakland-based developer has 1,500 units in its portfolio.
This fund is the firm’s second that will target property in Opportunity Zones — which provides tax incentives for developers and investors who pour money into economically-distressed communities.
Opportunity Zones in Oakland include a large part of Chinatown and Coliseum, as well as most of West the city and the Oakland Airport.
Riaz Capital’s self-described “affordable-by-design” studio-type units in townhouse buildings that target single individuals. The units feature a private bathroom and kitchenette. A larger kitchen and common room are shared by the residents.
[SFBT] — Victoria Pruitt