Madison Park Launches $88M Oakland Development Plan

Madison Park Financial plans to invest $88M to build three residential projects at former industrial sites in Oakland.

Madison Park Financial completed Oakland's only market rate housing project to open in 2014. (That would be Lampwork Lofts, which CEO John Protopappas talked about when we snapped him at the Oakland State of the Market event last year.) The developer has equity financing for the planned projects, but still needs to secure construction loans.

The projects are:

  • 2935 Telegraph Ave in Pill Hill: 162 residential units and more than 4k SF of retail space. The $58M JV with Ronald Nahas needs final city approval and is expected to break ground in April 2016.

  • Gallot at 3014 Chapman St (near the Fruitvale BART station): 41 residential units. The $15M project needs entitlement; construction is set for August 2016.

  • Coast at 2715 Adeline St (West Oakland): 42 residential work-live units. Madison Park Financial is the fee developer for the $15M project; construction is set for December 2016.

It's a challenge financing Oakland residential projects with high labor costs and low rents of about $3.50/SF compared with $8/SF in San Francisco. There's also concern about Oakland's consideration of impact fees to support affordable housing, which could slow the building of residential projects. [SFBT]

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