Marriott’s New Flag to Locate in Opp Zone Uptown

OAKLAND, CA—In what is one of the first new hotel developments in downtown Oakland in many years, Marriott International’s new Moxy hotel is planned for a prime location in the Uptown neighborhood. The hotel, which is slated to open in 2021, consists of 173 rooms and targets Millennial travelers who are increasingly drawn to this energetic urban environment.

In addition, Uptown qualifies as an opportunity zone under the Tax Cuts and Jobs Act of 2017, and offers investors attractive tax benefits to create economic growth. Global alternative asset management firm, EJF Capital LLC, has joined Tidewater Capital and Graves Hospitality to develop the project.

“This is exactly the type of investment the opportunity zone program is intended to generate,” says Neal Wilson, EJF co-founder and chief operating officer. “And we are pleased to support the greater Oakland community through the development of this exciting hotel concept, which is expected to bring 50 permanent jobs to downtown. Along with our partners, Tidewater and Graves Hospitality, we believe that this is the right time to invest in Oakland, a dynamic, expanding city that welcomes growth capital.”

EJF is providing equity capital for the project primarily from EJF OpZone Fund I LP, a fund formed by the global alternative asset manager last year specifically to invest in new construction projects within opportunity zones. San Francisco-based real estate investment manager and developer Tidewater Capital led the effort to entitle the site and will manage the construction process. Graves Hospitality is one of Marriott’s exclusive partners for development of the Moxy brand.

“The Moxy will appeal to a powerful demographic with growing salaries and an appetite for travel,” says Asheel Shah, EJF’s senior managing director and head of real estate development. “We are investing with a team that has an outstanding track record in developing property in urban environments locally and across the country.”

The hotel will benefit the community in many ways besides creating jobs such as locally sourcing food and beverage resources as well as art for the lobby area. Additionally, the street-level amenity space will be programmed with weekly events and exhibits, drawing primarily upon local artists, musicians, performers and other neighborhood businesses. The project will engage the broader community and make a meaningful contribution to the neighborhood, providing environmental, economic and cultural benefit for local businesses, individuals and visitors.

“This is an innovative project representing a two-year grassroots effort with community input to create something very special in Oakland. We’re excited to take an under-utilized site and, with EJF and Graves, deliver a high-density, high-quality sustainable development in one of Oakland’s most vibrant neighborhoods,” said Craig Young, managing principal of Tidewater Capital.

Uptown Oakland is an up-and-coming neighborhood, considered the entertainment hub for Oakland with numerous restaurants, music venues, art galleries and theaters such as the Fox Oakland Theater and Paramount Theater. In addition, numerous high-rise apartment properties have brought additional foot traffic and economic vitality to the area.

Recently, Jack Dorsey announced that Square Inc. will lease the entire Uptown Station redevelopment of 350,000 square feet located only three blocks from the Moxy location. Uptown Station was a closed Sears department store that will be renovated for mixed-use retail and office. The Moxy will be the closest hotel to Uptown Station.

Other notable employers nearby include Pandora Media, which employs more than 1,000 people in its Oakland headquarters two blocks away, and Kaiser Permanente with more than 3,000 employees in downtown Oakland. With the opportunity zone designation, the development team believes Oakland’s economic expansion will accelerate.

“The Uptown Oakland Moxy Hotel is one of the first opportunity zone developments to move forward in the Bay Area and one of just a handful so far in the country. We’re excited to move the vision of the project forward and contribute to the ongoing economic and cultural growth of Uptown,” Young tells GlobeSt.com.

Moxy is Marriott’s newest brand and is a three-star boutique hotel product targeted toward Millennials who understand that style can be delivered at attractive prices. Marriott did extensive research on what Millennials truly care about, such as socializing, speedy Wi-Fi and an active lobby with bar and lounge areas. There are currently 14 Moxy hotels in operation in the US, 39 in Europe and three in Asia with dozens more under development.

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