OAKLAND — Plans to develop a big new supportive housing site in Oakland have taken a step forward with a deal to buy a hotel that would be revamped to accommodate the residences.
MPI Homes, a real estate developer that acted through an affiliate, has paid $33 million to buy an Extended Stay America hotel in Oakland, documents filed on April 9 with the Alameda County Recorder’s Office show.
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The just-bought hotel is located at 3650 Mandela Parkway in West Oakland near the confluence of interstates 80, 580, and 880 east of the Bay Bridge, the county records show.
The hotel is the site of a proposed housing redevelopment, according to documents on file with the Oakland Planning Department.
“The Mandela Homes project involves the acquisition, rehabilitation, and conversion of a 149-room Extended Stay America hotel into permanent supportive housing at 3650 Mandela Parkway,” the Oakland planning files state.
The new owner of the hotel property, MPI Homes, develops and owns an array of housing properties, according to its website.
“MPI Homes specializes in affordable, market-rate, and student rental housing, with a focus on transit-oriented, sustainable, and green developments,” MPI states on its website.
The city of Oakland and the state Social Services Department have teamed up to help finance the program, Oakland Planning Department files show.
A wide-ranging renovation is being planned for the project.
“The scope of work includes interior renovations to create accessible units, a manager’s unit, and community spaces, along with minor site improvements,” the Oakland Planning Department stated on the project site.
The seller of the hotel property was a real estate affiliate of Blackstone, a real estate and investment services titan.
At one point, Oakland officials had considered converting the Jack London Inn on the city’s waterfront into a homeless residency. But pushback from Jack London Square residents and businesses prompted the city to ditch those plans.
The converted hotel project would do more than simply provide a place where formerly homeless people would live.
“The project will provide on-site supportive services for homeless and at-risk populations, ensuring long-term stability for residents,” the Oakland planning files state.
The MPI Homes affiliate also obtained real estate loan financing $20.8 million at the time of the purchase, the Alameda County property documents show. This consisted of a $13.8 million loan and a $7 million grant.
In addition, MPI Homes and Housing Consortium of the East Bay will receive up to $27.6 million in funding from a state Social Services Department program, with these funds to be used for renovation and construction work at the hotel.
The supportive housing property is near multiple large homeless encampments.
The real estate documents also showed that not all 149 hotel rooms would be used for supportive housing.
“Permanent supportive housing where 125 units are prioritized for qualified residents experiencing or at risk of homelessness” was how the county real estate records described the long term plans for the hotel property.
