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n a significant move to address Oakland's homelessness crisis, MPI Homes has acquired the Extended Stay America hotel at 3650 Mandela Parkway with plans to transform it into a 125-unit permanent supportive housing project. The $33 million purchase price marks a crucial step towards revitalizing the property and providing stable living spaces for those in need.

    Funding for the redevelopment will come from a combination of sources, including a $20.8 million financing package and up to $27.6 million in state support through the California Social Services Department program. This total investment of $48.4 million will enable MPI Homes to renovate and construct the project, creating an environment conducive to long-term stability for residents.

    The conversion of the 149-room hotel into a residential complex prioritizes individuals experiencing or at risk of homelessness, with additional amenities including a manager's unit and community facilities. This adaptive reuse approach aims to address homelessness in Oakland by repurposing existing properties, setting it apart from previous proposals that faced resistance from local stakeholders.

    MPI Homes, founded by Ali Kashani, focuses on value-add, mixed-use affordable and market-rate multifamily projects in Northern California. With this acquisition, the company continues its mission to provide much-needed housing solutions in the region.