MPI Homes Pays $33 Million for Oakland Hotel

MPI Homes has acquired an Extended Stay America hotel in Oakland with plans to convert it into permanent supportive housing for formerly homeless people.

The developer paid $33 million for the property at 3650 Mandela Parkway, according to the East Bay Times. The seller was an affiliate of Blackstone, the New York-based investment giant, which has divested multiple properties from its national portfolio.To finance the project, MPI Homes secured $20.8 million through a combination of loans and grants. In addition, MPI and the Housing Consortium of the East Bay have been approved for up to $27.6 million in funding from a California Social Services Department program. The total $48.4 million package will support the renovation and construction work.

Redevelopment involves the conversion of the 149-room hotel into a residential complex offering 125 units prioritized for individuals experiencing or at risk of homelessness. In addition to housing units, the project will include a manager’s unit and community facilities. The modifications aim to create an environment conducive to long-term stability for residents.

Previously, Oakland officials considered a similar conversion of the Jack London Inn into a housing facility for the homeless, but that plan was abandoned due to resistance from local residents and businesses.

The Mandela Parkway site in contrast has gained traction, aiming to address homelessness in the city through adaptive reuse of existing properties.

Earlier this year the city approved a 192-unit project by developer Related California.

MPI Homes focuses on value-add, mixed-use affordable and market-rate multifamily projects in Northern California, according to its website. The company was founded by Ali Kashani, the founding executive director of Affordable Housing Associates.

— Joel Russell