The dimensions of a typical studio residence is 500 to 600 sq. toes. The studios that Riaz Capital is constructing across the Bay Space measure on common 300 sq. toes — which is on the small aspect, even for the standard resort room.
However the Oakland-based developer sees micro-studios as a means to offer “affordability by design” in a state the place the price of housing is a significant monetary burden for a lot of residents.
Items include solely the necessities. Many don’t have ovens — simply two electrical burners. The primary few items the corporate constructed got here with mini fridges moderately than full-size ones. (Upon residents’ frustration with the shortage of freezer house, they upgraded to larger ones at their subsequent undertaking.) The small unit dimension means they will squeeze extra flats right into a single constructing, attaining higher economies of scale in terms of their upkeep and working funds.
So do the items lease for half as a lot as a 600-square-foot residence?
Effectively, no.
However the lease is cheaper than lots of the newly constructed flats throughout the Bay Space. At ArtHaus Jack London, a former motel Riaz transformed into 130 flats, a 277-square-foot studio goes for $1,750 a month. That worth is similar whether or not you’re renting a market-rate residence or one of many income-restricted ‘below-market-rate’ items for these making lower than 110% of the world median earnings (about $120,000 for a single-income earner in Alameda County). Different newly constructed studios round Oakland of extra typical dimension run nearer to $2,200 a month.
Riaz Capital is bringing the micro-unit idea elsewhere. They’ve constructed 2,200 residences all through the Bay Space, and have 3,700 items in improvement throughout California, together with in San Diego and Santa Cruz.
Riaz Taplin, CEO, and Lisa Vilhauer, vice chairman of design and entitlement, sat down to clarify why they’re betting their smaller items is usually a resolution for some Californians searching for low-cost housing choices.
Riaz Taplin, founding father of Riaz Capital, proper, and Lisa Vilhauer, Vice President of Design & Entitlement at Riaz Capital, converse throughout an interview on the ArtHaus Jack London flats in Oakland, Calif., on June 3, 2025. (Dai Sugano/Bay Space Information Group)
Q: How did you get into multifamily actual property?
Taplin: Within the Seventies, my dad was working in apartment conversions. Some individuals bond with their dad round sports activities — me and my dad bonded over actual property. We began shopping for residence buildings within the late ’90s. Then, after I went to varsity, I felt like, “I didn’t get a degree to deal with toilets and tenants.” So I wished to do one thing completely different.
I spent the primary a part of my profession constructing luxurious housing, however I used to be within the concept of a design-based resolution to affordability. I’ve spent the final 5 years targeted on housing single-income professionals at scale.
Vilhauer: I’ve a level in panorama structure however ended up working in civil engineering and planning. After eight years, I made a decision I wished to be on the developer aspect as a substitute of the guide aspect. So I went to Taylor Morrison, which is a public nationwide residence builder, and some years later went to a smaller family-owned improvement firm within the East Bay, after which got here to Riaz.
Q: Land is so costly within the Bay Space that we see most ground-up builders specializing in the highest finish of the market, the place rents are the very best. On the opposite aspect of the spectrum you have got nonprofit builders that rely largely on subsidies (sometimes, tax credit) to construct reasonably priced housing. Why concentrate on constructing flats which can be in the course of the market?
Vilhauer: Few individuals are constructing for the individuals who make someplace in between — between $60,000 and $120,000. We determined to concentrate on them. We noticed such a necessity.
Throughout 2020, after we began leasing our first undertaking, that’s after we noticed that we’d actually hit the nail on the top. We had been discovering loads of renters who couldn’t work remotely – who wanted to be right here in Oakland. Individuals like lecturers, bus drivers, nurses, who didn’t wish to be sharing areas at the moment, however they nonetheless wanted to seek out someplace inside their funds. We’re even seeing some retirees, who benefit from the comfort of residing downtown.
The pool space on the ArtHaus Jack London flats in Oakland, Calif., on June 3, 2025. (Dai Sugano/Bay Space Information Group)
Q: Throughout the COVID-19 pandemic, many individuals wished to reside alone moderately than with roommates. What are the traits in how individuals are residing immediately, and the way did that inform your design for these items?
Vilhauer: Persons are usually residing in roommate conditions as a result of it’s reasonably priced. Whereas some individuals benefit from the group facet, lots of people favor to reside on their very own. That actually knowledgeable our design.
We’re making an attempt to construct naturally occurring reasonably priced housing, versus income-restricted. A few of our items are rent-restricted — just like the moderate-income items that we constructed in order that we could possibly be allowed to construct extra items in every property with the state density bonus program.
We even have loads of renters staying right here for shorter intervals — like touring nurses. We provide leases which can be lower than a yr lengthy for them. We additionally provide furnished items which can be move-in prepared.
Q: Throughout COVID, lots of people determined to depart the city atmosphere. These ArtHaus flats are very “urban” initiatives. How has that impacted what you are promoting?
Taplin: The development earlier than the pandemic was small home, large life. You alternate having a giant residence within the suburbs for a smaller place within the metropolis, as a result of your yard is the city atmosphere.
The pandemic created a shift towards proximity. That coincided with the tip of a significant tech cycle right here. Now, with the rise of so many synthetic intelligence corporations within the Bay Space, I feel we’re beginning to see one other tech cycle. That’s bringing individuals again, and so they’re searching for housing.
Vilhauer: Right here at ArtHaus Jack London, after 9 months of lease-up, we’re about 93% occupied.
Q: Rents in most components of California and the Bay Space have began to get well from the pandemic droop — apart from within the East Bay. Are you getting the rents you anticipated?
Taplin: No. This five-year interval is an anomaly in California historical past — it might or might not right itself. I consider that we’ll see a reversion to the imply.
Q: Are you able to speak a bit extra in regards to the state density bonus program and the way you’ve used that in your initiatives?
Vilhauer: The density bonus is a state coverage program supposed to get extra housing constructed, each market-rate and reasonably priced, via a commerce off: the developer offers a certain quantity of reasonably priced housing, and in return they both are allowed to construct extra densely, or get out of improvement requirements which may add prices to a constructing.
Santa Cruz, for instance, has a normal that builders can’t use vinyl home windows. And it’s vastly expensive to put in aluminum home windows. So via the density bonus, we’re offering extra reasonably priced properties, and we’re in a position to set up vinyl as a substitute of aluminum.
Lisa Vilhauer:
Age: 42
Place: Vice President, Design & Entitlement
Training: California Polytechnic State College – San Luis Obispo, Panorama Structure
Residence: Danville/Carnelian Bay
Riaz Taplin:
Age: 44
Place: CEO
Training: London Faculty of Economics and Political Science — B.A., Financial Historical past
Residence: San Francisco
5 details about Taplin and Vilhauer:
1. Taplin and Vilhauer have wished to convey colour to their buildings. Thus far, the ArtHaus Residing portfolio has employed over 20 native artists for each exterior murals and inside artwork.
2. Taplin began his profession in luxurious housing. His purpose is bringing the identical eye for high quality and element to the residences that the corporate builds now.
3. Taplin was raised with the mentality of “Do Well, Do Good.” His mom was the communications director for Deliberate Parenthood, his stepfather the top of the Sierra Membership and his father an actual property lawyer.
4. Vilhauer has entitled over 5,000 items in her profession, 1,350 with Riaz Capital alone.
4. Taplin and Vilhauer had been caught in an elevator collectively in Copenhagen, with two different builders and an architect, whereas they had been there studying about city design with SPUR, a metropolis planning assume tank primarily based in San Francisco.
