Bus Terminal Transforms into Affordable Live/Work

OAKLAND, CA—Given the need for affordable housing in the Bay Area, a company that is committed to that cause along with a wow factor would be a welcome combination. Locally based oWow does just that by revitalizing unoccupied buildings and vacant land into affordable housing projects that strengthen neighborhoods.

Its newest project is a four-story 102-unit 91,180-square-foot live/work rental project located on 1.44 acres at 1919 Market St. The adaptive reuse project was formerly an industrial-zoned Greyhound bus terminal. Several of the property’s exterior walls will retain elements of the industrial facade of the original use, while the interiors will be entirely new construction.

Parkview Financial recently provided a $32 million construction loan to oWow to get the ball rolling. Despite Oakland’s reputation as an up-and-comer, it often takes private lenders that are more apt to lend in these areas to step in.

“This loan was a good fit for Parkview Financial as our firm is able to provide construction loans that are more challenging for developers to obtain,” Paul Rahimian, CEO with Parkview Financial, tells GlobeSt.com. “Banks oftentimes don’t want to take on the risk for redevelopment in gentrifying markets. 1919 Market is a project we are extremely confident with as there is such a short supply of affordable housing not only in the Oakland area, but the greater San Francisco region as well.”

1919 Market is located .8 miles from the 12th Street BART station in downtown Oakland and one-half mile from Oakland’s City Center. But still, doubts remained on the location.

“It has been challenging to secure construction financing as there are many banks that are apprehensive about venturing into west Oakland as they still don’t consider it as a prime area,” commented Danny Haber, CEO and co-founder of oWow. “Parkview stepped up and delivered on everything they said they would do, and we are looking forward to delivering a quality affordable housing project here.”

Completion of construction is anticipated for June 2020 and the project will be comprised of three- and four-bedroom flats and lofts with some ceiling heights up to 24 feet.

“Oakland rents are trending closer to San Francisco pricing because of pent-up demand. West Oakland has seen quite a bit of development recently as supply is lacking and this project will provide more affordable housing, which is even scarcer. We saw this as a strong opportunity to lend to an experienced developer in a market that continues to see tight housing supply and rising property values,” said Rahimian.

Employment levels will be boosted by large office tenant migrations and expansions coming to the market in the next 12 months, according to a report by Cushman & Wakefield.

“Unemployment fell 40 basis points year-over-year to 3%. Job growth has slowed in recent years as the region nears full employment, while a housing shortage has presented an obstacle to labor force growth. However, some relief is on the horizon,” says Molly Herrick, Cushman & Wakefield’s market director for the East Bay. “There are now over 5,600 apartment units under construction in Oakland which will spur labor force growth.”

The 1919 Market Street project will feature large landscaped courtyards, retail coffee bar in the lobby, two elevators, resident lounge, bike room and onsite laundry. The units will include engineered vinyl flooring, stainless steel appliances and full kitchens.