Riaz Capital Granted Entitlements For Three Multifamily Projects
Three properties will add 40 residences to company's growing portfolio of affordable, entry-level housing
The entitlements were granted less than eight months after the ABD model was proven successful in the worst of economic conditions. The Linden, a 30-residence multifamily project at 1805 Linden Street in Oakland, was fully leased within a month of opening at the height of the pandemic. The three newly-entitled Oakland properties -- 1035 Yerba Buena, 2432 Chestnut and 1925 Brush -- will serve a similar demographic of renters with 40 units that are affordable for Bay Area professionals earning between $50,000 and $120,000.
"The Linden's rapid lease-up even as the pandemic challenged every real estate sector validated the ABD strategy's ability to withstand economic turbulence. These entitlements add three more properties to our pipeline of projects under development that will also create alignment between investor returns and housing affordability in the Bay Area," said Riaz Taplin, principal of Riaz Capital, a community-conscious company dedicated to creating flexible workforce housing for the Oakland community.
Riaz Capital's ABD strategy was created to provide entry-level housing for teachers, nurses, first responders and other professionals whose incomes make most Bay Area housing unaffordable. The strategy leverages massive demand among this group, while also optimizing investor returns and cushioning investments from unexpected market volatility such as those seen in 2001 and 2008.
Each ABD project, many of which are funded by investors through the company's ABD Ozone Fund, delivers smart, flexible urban housing solutions that combine stylish and efficient design elements to produce housing that is affordable and desirable for its target tenants. When combined with the company's zero-displacement approach to housing development, the new housing stock is positioned to directly address Bay Area demand.
There is an estimated 408,000-unit shortfall in housing considered affordable for the targeted group of renters in the Bay Area – demand that wouldn't be met until the year 2500 at the current rate of construction – which means investors receive sustainable returns even during periods of economic turbulence.
The fund currently supports the acquisition, design and eventual management of small-site developments that will provide new residences at average monthly rents below 30 percent of the area's average monthly income. For example, The Linden, which is one of the three projects that received the entitlement, has an average rent of $1,868 per month.
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