Modular Hotel Delivers in San Francisco OZ

In conjunction with Graves Hospitality, Tidewater Capital has completed Oakland’s first Moxy Hotel, a brand from Marriott International.

Moxy Oakland Downtown is the first modularly constructed Moxy in the US. Tidewater used the opportunity zone investment program to produce the 172-room hotel, which is one of the first new hotel developments in downtown Oakland in nearly a decade. 

Compared to an average construction timeline, Tidewater was able to reduce construction time by 25%. The hotel consists of two levels of a site-built concrete frame under five levels of factory-built wood-frame rooms.

Moxy Oakland will also feature an on-site restaurant, La Palabra, slated to open in Summer 2021. 

While hotels have been hit hard during the pandemic, Marriott International’s Moxy Hotels, which debuted in September 2014, could carve a post-pandemic niche for the budget-conscious traveler.

Other firms are also focusing on building hotels in opportunity zones, though some are at the other end of the price spectrum.

Last November, Shopoff Realty Investments launched its first qualified opportunity zone fund. Called the Shopoff DLV QOZ, the fund will have a maximum equity raise of $200 million, and it will provide equity for the construction of the Dream Las Vegas hotel, a $545 million project. 

The hotel will have 450 rooms and dining and nightlife venues, including 42,000 square feet of gaming. Shopoff will hold the hotel for 10 years to take full advantage of the tax benefits.

In another example, last year Florida-based Opp Zone Capital LLC launched the OZC–Southern US RE QOF qualified opportunity fund for mixed-use, multifamily, self-storage and hotel development in the Southeast and Southwest. The fund was authorized to raise $40 million for opportunistic opportunity zone acquisitions.