OAKLAND — Plans to develop a supportive housing site in Oakland took a step forward with a deal to buy a hotel that would be revamped to accommodate the residences.

Real estate developer MPI Homes, through an affiliate, paid $33 million to buy the Extended Stay America hotel located at 3650 Mandela Parkway, documents filed on April 9 with the Alameda County Recorder’s Office show. The seller was an affiliate of Blackstone, a real estate and investment services company.

The hotel, near the confluence of interstates 80, 580, and 880 east of the Bay Bridge, is the site of the proposed redevelopment, according to documents on file with the Oakland Planning Department. It is near multiple homeless encampments.

“The Mandela Homes project involves the acquisition, rehabilitation, and conversion of a 149-room Extended Stay America hotel into permanent supportive housing at 3650 Mandela Parkway,” Oakland planning files said.

The MPI Homes affiliate obtained real estate loan financing of $20.8 million at the time of the purchase, Alameda County property documents show. This consisted of a $13.8 million loan and a $7 million grant.

In addition, MPI Homes and Housing Consortium of the East Bay will receive up to $27.6 million in funding from a state Social Services Department program. The funds will be used for renovation and construction work, Oakland Planning Department files show.

“The scope of work includes interior renovations to create accessible units, a manager’s unit, and community spaces, along with minor site improvements,” the Oakland Planning Department said.

Once complete, 125 units will be “prioritized for qualified residents experiencing or at risk of homelessness,” according to county real estate records.

At one point, Oakland officials had considered converting the Jack London Inn on the city’s waterfront into residences for those struggling to find a permanent home. But pushback from nearby residents and businesses prompted the city to ditch those plans.

Once complete, the project at the former Extended Stay America hotel would do more than simply offer a place to live.

“The project will provide on-site supportive services for homeless and at-risk populations, ensuring long-term stability for residents,” Oakland planning files state.

MPI Homes develops and owns an array of housing properties, according to its website.

“MPI Homes specializes in affordable, market-rate, and student rental housing, with a focus on transit-oriented, sustainable, and green developments,” MPI states.