ARLINGTON, Va.--(BUSINESS WIRE)--EJF Capital LLC (“EJF”), a global alternative asset management firm, announced today that it has joined Tidewater Capital and Graves Hospitality to develop Marriott International’s new Moxy hotel in the Uptown neighborhood of Oakland, California. Uptown Oakland qualifies as an “Opportunity Zone” under the Tax Cuts and Jobs Act of 2017 (“TCJA”) and offers investors attractive tax benefits to create economic growth.
The planned Moxy hotel, which is slated to open in 2021, consists of 173 rooms and targets millennial travelers who are increasingly drawn to Oakland’s energetic urban environment. EJF Co-Founder and Chief Operating Officer Neal Wilson said, “This is exactly the type of investment the Opportunity Zone program is intended to generate. And we are pleased to support the greater Oakland community through the development of this exciting hotel concept, which is expected to bring 50 permanent jobs to downtown. Along with our partners, Tidewater and Graves Hospitality, we believe that this is the right time to invest in Oakland, a dynamic, expanding city that welcomes growth capital.”
Asheel Shah, EJF’s Senior Managing Director and Head of Real Estate Development, added, “The Moxy will appeal to a powerful demographic with growing salaries and an appetite for travel. We are investing with a team that has an outstanding track record in developing property in urban environments locally and across the country. We are proud to be playing a part in the growing Oakland business community.”
EJF is providing equity capital for the project primarily from EJF OpZone Fund I LP, a fund formed by the global alternative asset manager last year specifically to invest in new construction projects within opportunity zones. San Francisco-based real estate investment manager and developer Tidewater Capital led the effort to entitle the site and will manage the construction process. Graves Hospitality is one of Marriott’s exclusive partners for development of the Moxy brand.
“This is an innovative project representing a two-year grassroots effort with community input to create something very special in Oakland. We’re excited to take an under-utilized site and, with EJF and Graves, deliver a high-density, high-quality sustainable development in one of Oakland’s most vibrant neighborhoods,” said Craig Young, Managing Principal of Tidewater Capital.
Uptown Oakland is an up-and-coming neighborhood in downtown Oakland, California. It is considered the entertainment hub for Oakland with numerous restaurants, music venues, art galleries and theaters such as the Fox Oakland Theater and Paramount Theater. In addition, numerous high-rise apartment properties have brought additional foot traffic and economic vitality to the area.
Most recently Jack Dorsey announced that Square Inc. will lease the entire Uptown Station redevelopment of 350,000 square feet located only three blocks from the Moxy location. Uptown Station was a closed Sears department store that will be renovated to mixed use retail and office. The Moxy will be the closest hotel to Uptown Station.
Other notable employers nearby include Pandora Media, which employs over 1000 people in their Oakland headquarters two blocks away, and Kaiser Permanente with over 3000 employees in downtown Oakland. With the Opportunity Zone designation, EJF believes Oakland’s economic expansion will accelerate. For more information, visit https://www.visitoakland.com/things-to-do/neighborhoods/uptown/.
The Oakland Moxy Hotel
The Moxy hotel will be one of the first new hotel developments in downtown Oakland in many years. The hotel will benefit the community in many ways besides creating jobs such as locally sourcing food and beverage resources and sourcing local art for the lobby area. Additionally, the street-level amenity space will be programmed with regular events and exhibits weekly, drawing primarily upon local artists, musicians, performers and other neighborhood businesses. The project will engage the broader community and make a meaningful contribution to an already eclectic neighborhood, providing environmental, economic and cultural benefit for local businesses, individuals and visitors.
Moxy is Marriott’s newest brand and is a three star boutique hotel product targeted toward millennials who understand that style can be delivered at attractive prices. Marriott did extensive research on what millennials truly care about, such as socializing, speedy Wi-Fi and a fun active lobby with bar and lounge areas. There are currently 14 Moxy hotels in operation in the U.S., 39 in Europe and 3 in Asia with dozens more under development. Visit www.moxy-hotels.marriott.com for more information.
About Tidewater Capital
Founded in 2013, Tidewater Capital is a San Francisco-based real estate investor, developer and operator with expertise across office, residential, retail, hotel and industrial asset classes and an investment philosophy grounded in creating value for all stakeholders and generating positive impact in the communities in which it works. Visit www.tidewatercap.com for more information.
About Graves Hospitality
Graves Hospitality, which is headquartered in Minneapolis, Minn., has developed and managed more than 100 hotels and restaurants, as well as numerous residential and commercial properties. Graves is one of only a handful of approved developers for the Moxy brand and will manage the Moxy hotel under a long term management agreement. This hotel will be the fourth Moxy that Graves has developed.
About EJF Capital
EJF Capital LLC is an SEC-registered, employee-owned alternative asset management firm headquartered outside of Washington, D.C. EJF manages approximately $7.3 billion across a diverse group of alternative asset strategies. The firm was founded in 2005 by Manny Friedman and Neal Wilson. Since inception, EJF has focused on regulatory event-driven investment themes including its newly formed strategy to investment in Opportunity Zones. In 2018, EJF hired Asheel Shah, former President and Chief Investment Officer of the multifamily division at Kettler Inc., a diversified real estate development company based in McLean, VA. Mr. Shah brings with him over 20 years of experience in the real estate industry focused on acquisitions, asset management, development, construction and equity capital sourcing. Visit www.ejfcap.com.
EJF OpZone Fund I
EJF formed the EJF OpZone Fund I LP (the “Fund”) to take advantage of certain benefits provided by the TCJA. Such benefits to U.S. taxable investors include the ability for investors to (1) defer recognizing recent capital gains for federal income tax purposes until 2026 (treatment of state capital gains varies by state), (2) reduce the amount of capital gains recognized in 2026 by 15% (for investors investing in 2019 and prior), and (3) eliminate any federal capital gains tax generated from investments in the Fund (for investments held in the Fund for ten years). EJF is targeting a capital raise of $300 million to $500 million for the Fund and EJF partners have made a substantial investment in the Fund.
If you would like more information on the EJF OpZone Fund I LP, please contact EJF Investor Relations at email@example.com.