When Erica Nagel got pregnant in 2020, she and her husband, Zachary Judkins faced a common Bay Area predicament: Their 1940s Oakland bungalow had charm but not enough room. Between Zac’s two teenagers from a previous marriage and a baby on the way, they needed more space in their three-bedroom home.

Sure, they had a basement, but it felt like a separate world, accessible only via a steep, enclosed staircase that required ducking to avoid hitting your head.

“We got contractors to come in and they were like, ‘That’s going to cost around $600,000,’” Erica recalls. “We were like, oh, that’s crazy—but we did the downstairs because we had to.”

Before: Basement

After: Basement

In 2020, the couple hired architect Sky Lanigan for the first phase of their renovation, which created a primary suite in the basement for Erica and Zac, freeing upstairs space for their growing family. But the kitchen remained a disaster. Cabinet doors were falling off the hinges, and the drawers were just basic boxes.

“I’m a realtor and I was like, you know, if we ever sell this house, we’re going to do the kitchen and somebody else is going to enjoy it,” Erica says. “We should just do it.”

In 2023, they returned to Lanigan with a new mandate: Make the upstairs and downstairs feel connected, and refine the choppy layout into a cohesive two-story home where teenagers, a toddler, and work-from-home parents could coexist.

Before: Primary Bedroom

After: Primary Bedroom

“In the Bay Area, a lot of homes are 100 years old and small, and often the basements get dug out after they’re built,” Erica explains. “There’s a lower level, but it doesn’t feel very connected because it wasn’t done at the same time.”

Lanigan’s solution was radical openness. He removed walls separating the kitchen from the stairwell and hallway, creating what he calls a “feathered” connection between old and new. A new skylight and light well with cedar slats pulls sunshine deep into the house. White oak flooring flows from the kitchen down the stairwell, creating visual continuity.

“I wanted it to feel like you’re coming out of the earth,” Lanigan says about the transition from the underground basement. “You rise up into this really airy space.”

Before: Kitchen

After: Kitchen

Materials telegraph that journey. In the basement, black and white terrazzo from Concrete Collaborative and exposed foundation walls create a cave-like solidity. Upstairs, Fireclay tiles lighten the atmosphere, and Art Deco–inspired elements nod to the home’s 1940s origins. A pink tile island—Erica’s “funky” splurge—anchors the kitchen in sculptural boldness.

The details required coordination. Corner tiles from Fireclay create soft curves at the ends of the island. A metal railing slices cleanly through tile without a bottom rail, thanks to a hidden steel plate bolted to framing. Custom pulls integrated into white oak cabinetry by maker Michael Grandi add tactile pleasure. Cedar & Moss flush-mount fixtures replace generic can lights.

Before: Primary Bathroom

After: Primary Bathroom

Although the couple splurged on many features, several smart decisions kept costs down. The dining pendant? A $40 CB2 find that Lanigan spotted and told Erica to buy immediately before it sold out. The contractor? Bernardo Ramos, who’d never tackled a project this scale but kept costs down while executing challenging details. “We took a risk on a contractor who had never done a project this big,” Erica says. “His costs were lower and he was incredible.”

After: Dining Room

The biggest spends were tile and cabinetry—though Erica notes that the custom cabinetry cost barely more than stock, making it worth the investment. They saved by keeping the original footprint and foundation where possible.

Now the family often congregates around the pink island, and Erica’s 14-year-old daughter hangs out there with friends. The couple’s three-year-old plays in the basement family room, which has plenty of space to tuck away toys. Erica and Zac—who just launched a renewable energy company focused on cost-effective power line undergrounding—host more parties.

“Everybody kind of wants to just be in here now,” Erica says. “It didn't really work like that before.”

After: Stairwell and Entryway

$22,000

Foundation

$19,500

Structural

$38,800

Wall Finishes

$21,800

Flooring

$3,000

Roofing

$6,000

Hardware

$2,500

Electrical

$10,900

Plumbing

$30,000

HVAC Equipment

$4,158

Kitchen and Bath Fixtures

$9,805

Lighting

$80,500

Cabinetry

$8,000

Countertops

$25,000

Appliances

$11,000

Windows & Glazing

$10,381

Doors

$5,000

Millwork

$15,000

Tilework

$4,200

Metalwork

$12,000

Furnishings & Decor

$100,000

Permitting

$42,000

Design Fee

$20,000

Demolition

$8,000

Engineering

$12,000

Rental Housing

Grand Total: $521,544

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Project Credits:

Architect: Sky Lanigan Studios / @skylaniganstudios

Builder/General Contractor: Merge Construction

Structural Engineer: St. Onge & Associates

Cabinetry Installation: Michael Grandi Woodworking

Concrete Vanity Fabrication/Installation: Concrete Concepts & Design / @ccdmx

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Budget Breakdown: Their Oakland Bungalow Ran Out of Bedrooms, So They Built a Basement Suite