Riaz Capital is an Oakland-based developer and operator of workforce housing specifically focusing on how to address the changing housing need of the millennial generation. Our goal is to profitably develop housing that anyone earning area median income can proudly call home. Our mission is to create affordable-by-design housing for the workers of the Bay Area. We see this as a strategic and sustainable place to invest resources, as the 101 municipalities of the Bay Area have failed to create an adequate supply of affordable housing.
On account of our holistic approach to design, construction, and operations, we are uniquely positioned to both rehabilitate existing buildings and develop new properties into communities that meet the needs of today's Bay Area workforce. Our integrated group of companies, development, construction, and property management, delivers efficiency and long-term thinking to all of our projects while allowing us to create above-market returns for our investors.
Our principals have been successfully operating in the Bay Area since 1977 and in the East Bay multifamily market since 1999, with our core competency being in mid-market multi-family repositioning. Currently we own and operate ~1,300 units with building sizes ranging from 6 - 127 units. At the development level, we currently employ 16 people, with a total of 60 people company-wide.
In the late 1990’s and again in the late 2000’s, Riaz Capital recognized that the economic growth in the Bay Area would lead to a change in the demographics of the East Bay, specifically Oakland. This led to an opportunity to acquire value-add properties in various neighborhoods of the East Bay and convert these buildings from dilapidation into desirable communities for entry-level professionals, Millennials, and students. This resulted in increased rents in our developed properties, averaging 100%from 2009 to 2013.
Over the past ten years, our exited partnerships have acquired $27M of property which were improved and sold for $60M with an average 3.5 year hold achieving a 36.5% internal rate of return and a 2.78x equity multiple. Our portfolio of roughly 500 units in Oakland, acquired between 1999 to 2011, would result in a 4.5x equity multiple on invested equity if sold today, and our 2012 portfolio of roughly 150 units would result in a 3.5x equity multiple on invested equity. Our firm has performed over 160 projects (residential and multi-family) including over 20 re-development projects, consisting of $70M+ in total construction volume.
WHY WE DO WHAT WE DO
Oakland has benefited directly from the region’s economic growth and is attracting an increasing portion of the region’s creative class and educated workforce. Oakland is honing its own distinct style, shopping and food scene, with a comparison to Brooklyn now well documented, most recently and notably in the New York Times in May 2014. Riaz Inc. has observed these trends directly from its vantage point managing an East Bay portfolio over 15 years.
We know this market as well as anyone and have never been more excited about its near-term growth potential. The City of Oakland is supportive of new development in the transit-accessible West Oakland, Uptown/Broadway, and Lake Merritt neighborhoods. The City has issued long-range plans for each of the areas encouraging large-scale multi-family development. We think the City’s leadership is creating a political environment that will catalyze the development process in the near-term. The Bay Area’s expanding Millennial workforce needs affordable, transit accessible small format hoC.
San Francisco Chronicle, “Historic Spanish Revival church in Oakland resurrected as apartments.” 03.29.19
SF Business Times, Exclusive: A 102-year old East Oakland warehouse has been reborn as offices and artists studios, 02.22.18
SF Business Times, Exclusive: Rare East Oakland housing starts construction in historic church, 08.31.17
The Registry, 71-Unit Pleasant Apartment Complex Sells for for $21mm, 11.28.2016
In his early career, Riaz focused his attention on the ultra-luxury San Francisco real estate market. In 2013, one of his Pacific Heights projects set a record for highest residential property sales in San Francisco. While designing and developing over 50 high end residences in the Bay Area, Riaz also recognized an opportunity to purchase and reposition undervalued properties in Oakland. Utilizing his keen eye for design and unmatched understanding of both ends of the real estate market, Riaz set forth to transform these dilapidated buildings into a place that anybody would love to call home at an affordable price. Riaz built a network of investors and vendors to expand his footprint over the East Bay, adding value through increasing the density of units, performing seismic and common area upgrades, and completing major cosmetic renovations. Over time he grew the company into Riaz Inc. managing over $100m in assets, including over 800 apartments in the East Bay. Riaz is a board member of the San Francisco chapter of the Posse Foundation and co-chair of the American India Foundation SF Gala.
Riaz earned a B.A. in Economic History from the London School of Economics.
To view and learn more about his deign portfolio please visit www.artthausdesign.com
The Bay Area is an amazing place to work and live. Along with our Asset and Property Management teams, we are working on a number of very exciting adaptive reuse and ground-up projects that provide for current and future residential, transit-oriented, shared working, and workforce housing trend.
With over $300 million in assets under management, our Asset Management department specializes in mid-market multi-family acquisitions in the East Bay and luxury developments in San Francisco.
Our projects and funds have generated returns that are significantly above market with an average 36.5% IRR and 2.78x equity multiple to investors from our exited partnerships.
Riaz Capital currently holds a dynamic portfolio of over 65+ apartments in the east bay with buildings ranging from 6-120 units.
Our entrepreneurial investment approach over 40 years consistently places Riaz Capital at the forefront of Oakland’s revitalization efforts and the East Bay multi-family housing market by identifying up-and-coming neighborhoods.
REAL ESTATE CONSULTING
Our Real Estate Consulting department offer clients a wide variety of general consulting services related to our clients' individual real estate needs. These include advising on existing real estate holdings, analysis of potential acquisitions and optimization of our clients' real estate portfolio by leveraging our fully intergrated team and extensive network of real estate experts.
HOW DID WE GET HERE? 1977-2018
Russ Taplin converted roughly 400 units to condos from 1977-2000 through opportunistic pursuit of condo conversion permits and thorough understanding of the conversion process in its infancy.
In 1999, Russ and Riaz started acquiring Multifamily Buildings in San Francisco and Oakland growing the portfolio to 150 units by 2003 while managing every aspect of property operations from collections to repairs themselves.
Riaz began developing homes in San Francisco growing to $18M in revenue and 80 field workers at its peak with 20 projects completed.
Growing MF Portfolio
Instead of selling buildings through the downturn, Riaz sought opportunities and acquired an additional 317 units from distressed sellers through creative transaction structures.
Riaz converted his development flipper model to a full service business generating $22M in revenue with a 20 person team running 30 projects at a time from demo to move in.
Raised outside capital to accelerate our footprint over Oakland. Increaced building value through common area upgrades and seismic work to raise tenant profile and rents.
Formed and raised $10M for EBMF Fund which purchased and rehabilitated six multifamily buildings in Oakland.
Currently we own and operate over 1,200 units with building sizes ranging from 6-179 units. Our exited partnerships have acquired $27M of property which were improved and sold for $60M with an average 3.5 year hold achieving a 36% interanal rate of return and a 2.78x equity multiple.