The Z Hotel in Oakland, next to Jack London Square, will be turned into affordable housing.
Riaz Capital bought the hotel at 233 Broadway in the spring of 2021 at the “value price” of $18.15 million, or about $180,000 per room, the San Francisco Business Times reported. A $13 million renovation, which will probably take at least a year, will include aesthetic improvements and upgrades for the property’s “structural and seismic performance,”
Riaz plans to create 102 residential units for people who earn between $50,000 and $120,000 a year. The goal is to limit rents to less than $2,000 per month. Workers who typically fall into that bracket include teachers, police officers, nurses and firefighters.
“This building is an opportunity to make the lifestyle and culture people have in Jack London Square accessible to folks who wouldn’t have otherwise been able to rent in this neighborhood,” Riaz Capital’s Garrett Monaghan told the Business Times. “We want this to be one of the best lifestyle offerings in the residential market in Oakland at this price point.”
Riaz Capital can add kitchens and convert hotel rooms into “micro living” studio apartments of about 320-square-feet each because the property is already zoned for residential use. The pool, fitness center and lounge will remain.
Riaz Capital recently launched a second development fund focused on so-called opportunity zones, or designated distressed areas. At the start of the summer, it bought a 200-unit property for $44 million in Oakland’s East Lake neighborhood.
Leasing for units in the former Z Hotel could start as early as next fall.
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Residential
San Francisco
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