M
idPen Housing is poised to break ground on 332 affordable apartments at the former naval air station in Alameda, pending financing. The Foster City-based developer, led by Matthew Franklin, needs to secure funding for the two-phase project on 8 acres of city land. Co-developed with Alameda Point Collaborative and infrastructure provided by Catellus Development, the RESHAP project will include two apartment buildings with 78 and 85 units in the first phase, followed by two more buildings with 169 units and a shelter.

    The project has already secured $2 million in federal earmark funding, but MidPen is still finalizing its financing plan. The firm may apply for grant funding to cover the several million dollars needed to build the apartments. Nicole Franklin, the city's base reuse manager, notes that the development team needs to line up funding to move forward with construction.

    Financing construction has been a challenge due to higher interest rates and economic conditions. Construction costs have increased significantly, with one Bay Area apartment unit now costing over $1 million. The RESHAP project will provide 201 replacement homes for residents living in former military housing and 131 new homes on the West Midway site.

    The first phase of the project includes Stardust Gardens, a four-story complex with 78 affordable units and an early childhood development center, as well as Harbor Village, a four-story complex with 85 affordable units for veterans. MidPen Housing has $2.9 billion in assets under management and has developed numerous properties throughout the Bay Area.