‘Excited to keep investing:’ Developer plans two more apartment projects in Oakland

Three years ago, Hudson Companies embarked on its first apartment project in Oakland. Now it can’t seem to stop.

The Hermitage-based developer briefed the Pittsburgh Planning Commission Tuesday on not one but two apartment ventures in the neighborhood — a new 166-unit building and an office-to-residential conversion involving 42 units.

They were not the only apartment developments to gain traction Tuesday.

In Downtown, New Jersey-based Rugby Realty won the commission’s approval to convert an eight-story office building at 933 Penn Ave. into 70 apartments.

Hudson is proposing to develop its two new residential products across the street from each other on Melwood Avenue. They would be next to the Julian, the developer’s 10-story, 148-unit apartment complex now under construction at 419 Melwood.

“We’re excited to keep investing in this area of Oakland,” Jonathan Hudson, a principal with the company, told the commission.

At 450 Melwood, the developer intends to transform a two-story office building and former automobile showroom into 42 apartments — 29 one-bedroom, six two-bedroom, six studios, and one three-bedroom. A few will be two-story lofts.

Of the 42 units, five will be designated as affordable to households at or below 50% of the area median income under Oakland’s inclusionary zoning requirements.

Hudson is planning to utilize an existing parking garage to provide 30 spaces for the conversion project and another 117 for the new building to be erected across the street.

In addition, the developer will provide 14 bicycle spaces as part of the conversion project, which also will include amenity spaces and storage for residents.

“We have a really unique opportunity to reutilize what is now a soon-to-be vacant office building and large parking structure that came with it to facilitate the parking for the building across the street,” Mr. Hudson said. “We’re excited about the opportunity to be able to reuse that and to have a more efficient, useful project.”

The 12-story apartment complex at 435 Melwood would feature 166 units overall — 111 one-bedroom; 22 two-bedroom with two bath; 11 two-bedroom and one bath, 11 three-bedroom, two bath; and 11 studios.

Of the 166 apartments, 17 will be designated as affordable to households at or below 50% of the AMI under the inclusionary zoning requirement.

Among the amenities, Hudson is planning a fitness center, event space and party room as well as a “motor court” in front of the building for drop-offs and pickups. There also will be 56 spaces for bicycles.

Planning Commission members seemed to be generally supportive of the plans for the additional apartments at 435 and 450 Melwood.

Commissioner Phillp Wu said that “it’s good that new residential units are coming online in this area” given the presence of the universities nearby and the aging multifamily housing stock in Oakland.

“I think it’s kind of exciting to see a building that’s kind of elegant looking,” added Commissioner Peter Quintanilla about 435 Melwood.

But he also urged Hudson to make some changes to the facade to make it stand out more. That could include perhaps installing an awning in the center for people who are getting into and out of vehicles.

He also recommended that the developer consider adding more lighting and making other streetscape improvements around 450 Melwood.

In Downtown, Rugby is proposing to upgrade the facade at 933 Penn as part of the office-to-residential conversion. It also is planning a restaurant that opens into a parklet, a mezzanine level sundeck, a bocce court and other amenities as part of the development.

During Tuesday’s commission hearing, several occupants of a residential building adjacent to 933 Penn raised concerns about the noise the new project could generate, particularly from rooftop equipment and other activities, including the restaurant and parklet.

One resident, Ted Lyon, said the section of Penn where he lives has “changed dramatically” since he moved there in 2010.

While he noted that it was encouraging to see the neighboring building targeted for a rehab, he worried about the plans for the restaurant and parklet in the lot beside it.

“We’re very concerned about that. Noise is a major problem in that lot right now. It’s chained off at night as a result of that,” he said.

Rugby attorney Jonathan Kamin said his client is sensitive to such complaints, noting that it owns a number of properties along Penn. The parklet will be closed at night and Rugby will take steps to prevent any issues with noise stemming from rooftop equipment, he said.

“We certainly want to be a good neighbor,” he said.

As a condition of its approval, the commission required Rugby to continue to meet with the adjacent residents regarding the issues they raised.

While the developer has received the commission’s go-ahead, Aaron Stauber, Rugby president, has said that the project remains contingent on receiving a $2.7 million state capital grant and a $1.5 million low-interest loan from the city’s Urban Redevelopment Authority.

They are needed to help cover costs, including those associated with the seven affordable units required to get a 10-year tax abatement, he has said.

Original Post