The acquisition and planned conversion of a former hotel property in Stockton, California, is helping the Central Valley city deal with what’s become a growing homelessness crisis statewide.
The transaction also garnered a 2023 CoStar Impact Award for Sale/Acquisition of the Year in this effort to generate more affordable housing, an effort much appreciated by the judges, a panel of local real estate professionals.
Delta Community Developers Corp. of Stockton acquired the 121-room hotel property at 2654 W. March Lane, a former Motel 6 that operated most recently as Bella Vista Inn, in October for approximately $11 million. The seller was investor Champ Patel of Stockton, according to CoStar and public data.
Delta officials said the property, originally built in 1988, is being redeveloped into housing for those who are currently homeless, using a $22 million state grant with $3 million from the city.
The project at completion is planned to include a total of 68 affordable housing units, geared to young people and others transitioning from interim housing programs.
About the transaction: Delta Community Developers purchased a 121-room hotel property in Stockton for $11 million, with plans to convert it to housing for those who are currently homeless.
What the judges said: Jordan Amarant, a broker associate with PMZ Commercial, said the acquisition and redevelopment “shows creativity through grant money,” repurposing a property “to fill a true human need.”
They made it happen: The buyer was represented by Brian Peterson and Steve White of brokerage CBRE.