Building the Dream: How Bluenest is Redefining Affordable Homeownership in Miami-Dade

PROFILEmiami had the exclusive opportunity to sit down Bluenest Development CEO Salim Chraibi to discuss how his company is reshaping Miami-Dade’s attainable housing market. As home prices in Miami-Dade continue to soar, the dream of homeownership feels increasingly out of reach for the region's workforce. Enter Bluenest Development—a homebuilder focused on attainable, for-sale housing for those earning between 80% and 140% of the area median income.

Since launching in 2018 with just six single-family homes, Bluenest has rapidly scaled by targeting emerging neighborhoods and working alongside local governments to deliver homes priced well below the county median. Their mission goes beyond housing—it's about creating generational wealth and long-term community stability.

PROFILEmiami caught up with Salim to learn about how Bluenest Development is providing homeownership opportunities to the workforce while navigating the challenges of scaling in one of America’s most competitive real estate markets.

PROFILEmiami: What inspired you to launch Bluenest Development, and how has your mission evolved since 2018?

Salim Chraibi: We started in 2018, building just six single-family homes, and right away, I saw how many people were struggling to buy a home, priced out of the American dream of homeownership. That’s what inspired me to scale. Today, we are focused on developing homes in emerging neighborhoods throughout Miami-Dade County, catering to the workforce earning between 80% and 140% of the area median income. What surprised me early on was that nearly all the workforce housing being built was for rent. No one was offering for-sale options. I’ve always believed that every business should solve a real problem, and this one matters. It’s not just a high-demand product—it’s good karma. We're building something that meets a real need and doing it at scale.

PROFILEmiami: How does Bluenest define "attainable housing," and why is this concept so important in Miami-Dade today?

Salim Chraibi: The median home sale price in Miami-Dade is $665,000, and we bring homes to market that are substantially below that number, around $450,000. We partner with local governments to offer incentives that help buyers layer financing—combining a traditional first mortgage with a second provided by the county. With the blended interest rate of 4.5%, their total monthly payment comes out to much less than what they'd pay to rent the same home. Another benefit is that they don’t have to pay for private mortgage insurance. We've had people break down in tears at the closing table because they never thought this would be possible. Years later, some still reach out to thank us. 

PROFILEmiami: What’s your approach to scaling without compromising quality?

Salim Chraibi: We’ve developed a series of efficient, well-designed 3- and 4-bedroom models that we build consistently across our communities. These models are already approved in Miami-Dade, which allows us to bypass lengthy approval timelines and pull permits in under two weeks. We adapt each model to suit the character of the area, so only the elevations are different. This repeatable approach reduces costs and accelerates delivery, key factors in keeping costs down. Our scale also gives us purchasing power, and we’ve secured volume discounts with manufacturers. Homes priced around $450,000 often sell before construction is even complete, which helps reduce interest costs and our overall risk. 

PROFILEmiami: Tell us more about your projects in Miami-Dade. What makes these locations strategically important for workforce housing? 

Salim Chraibi: About 95% of our projects are in unincorporated Miami-Dade county, which makes the approval process easier. These areas are composed of infill locations and properties within the urban development boundary that are ideal for redevelopment

PROFILEmiami: What are some of the biggest challenges you've faced with zoning and land use in converting farmland to housing communities?

Salim Chraibi: The biggest challenge is local opposition - classic NIMBYism. Everyone agrees we need more workforce housing, but nobody wants it near them. You have residents on half-acre lots who bought over 3 decades ago and don’t want the character of the area to change with the addition of townhomes or single-family homes on smaller lots. We're not building high-rises — we're proposing compatible, low-density projects that provide homeownership opportunities. This kind of resistance is the main barrier to adding much-needed inventory.

PROFILEmiami: Your 1% down payment program is a bold step—how does it work, and what kind of buyer response have you seen?

Salim Chraibi: The program is available to buyers who make up the workforce of Miami-Dade County, typically between 80 and 140% of the Area Median Income. Buyers get pre-approved with one of our preferred lenders, who typically finance 75% of the purchase price, and the county provides the remainder through a second mortgage at 1%. The response has been incredible. Buyers are extremely grateful and are happy at the opportunity to own a home.

PROFILEmiami: Beyond building homes, how do you see Bluenest contributing to long-term neighborhood stability and generational wealth? 

Salim Chraibi: We’re making generational wealth possible by lowering the barriers to homeownership. Many of our buyers can move in with less than half a month’s rent as a down payment, compared to the years it might take to save traditionally.

In many cases, our buyers gain more in home appreciation within two years than we earned as the developer. Over time, that equity builds. After 20 or 30 years, the home is paid off and can be passed down, worth significantly more than what was originally paid. We’re also building multi-generational options, like duplexes, where families can live together under one mortgage.

PROFILEmiami: Looking ahead, where do you see Bluenest in five years?

Salim Chraibi: In the next 3 to 5 years, we aim to expand across Florida because affordability is a statewide issue, starting with markets like Palm Beach County where we’re already looking at sites. We’ll continue building in Miami-Dade for as long as land is available. This is the market we know best and we’ve built strong relationships here. 

PROFILEmiami: Tell us a war story 

Salim Chraibi: Let’s just say—make sure you’re well insured if you’re in land development. One night my wife forgot her laptop at work and asked me to give her a ride. I was in pajamas, thinking it would be a quick ride. On the way, I got a call that there was a fire at one of our job sites—in Homestead, an hour away. So we rerouted immediately and stayed until 8 in the morning. Thankfully, everyone was safe, but it was chaos. 

I was so nervous that I left the car running the entire night. When I tried to leave, the battery was dead. And of course, the skies opened up with pouring rain just as I tried to jump it. It was the longest, most stressful night of my life—and a great reminder that anything can happen in this business, usually at the worst possible time.

Transformative $3 Billion, 63-Acre 'Little River District' Led by SG Holdings Approved Paving Way For Miami's Largest Affordable Housing Development

The Miami-Dade County Commission has granted final approval for SG Holdings’ Little River District, a transformative $3 billion, mixed-use development that will redefine the urban landscape of Miami’s underserved Little River and Little Haiti neighborhoods. Spanning 63 acres, the large-scale project aims to build more than 5,700 affordable and workforce housing units, alongside major big-box retail stores, small businesses, major grocery operator, green public space, and transit infrastructure with the addition of a new train station, marking a historic investment in Miami’s future.

Led by SG Holdings, a joint venture comprised of Swerdlow Group, SJM Partners, and Alben Duffie, the partnership stands at the forefront of affordable housing development, following its successful delivery of the 1.5 million-square-foot, mixed-use development Sawyer’s Walk featuring 578 affordable senior housing units in Miami’s historic Overtown neighborhood.

The Little River District project is considered the largest affordable housing development in Miami-Dade County’s history. It will feature 2,284 affordable housing units at an average 60% Area Median Income (AMI), 1,398 workforce rental units at up to 120% AMI, in addition to 2,048 potential workforce condo units, which would allow the buyers to obtain significant subsidies to meet the purchase price at up to 140% AMI, ensuring long-term housing stability for thousands of Miami-Dade residents. Current residents of existing public housing complexes situated within the development site are guaranteed the right to return to new units at Little River District with no increases in rent.

This transit-oriented project is made possible through immense private and public sector collaboration led by the development group SG Holdings along with public sector partners: Miami-Dade County’s Department of Housing and Community Development (HCD), U.S. Department of Housing and Urban Development (HUD), the City of Miami, and key local officials such as Miami-Dade Mayor Daniella Levine Cava, County Commissioner Keon Hardemon, and City of Miami Commission Chairwoman Christine King.

“This approval is a major milestone in addressing Miami’s critical need for affordable and workforce housing,” said Michael Swerdlow, Founder and CEO of Swerdlow Group. “At a time when population growth is fueling demand for housing and everyday services, the Little River District will deliver a community that prioritizes affordable and quality housing, accessibility to public transit, and economic opportunity for local residents and business owners with the goal of generating prosperity for the highly deserving communities of Little Haiti and Little River.”

Given that portions of the 63-acre site are owned by the County, the public-private partnership paves the way for this comprehensive housing-led development plan that includes leveraging federal tax credits to support affordable housing and collaborating with Miami-Dade under a Community Benefits Agreement (CBA) to drive local hiring and community investment. The Little River District project is set to create hundreds of jobs during construction and after, stimulating the local economy and supporting businesses within the area. With a half century track record of responsible development, SG Holdings remains committed to working with construction partners who uphold labor standards and prioritize job site safety during the course of this multi-year project.

Designed by renowned architecture firm Arquitectonica, the mixed-use and mixed-income housing development will also introduce more than 370,000 square feet of retail space, including commitments already secured from major retailers such as Home Depot and BJs. In addition, the project will feature a major supermarket, gas station, food and beverage options, and other essential retail services for the neighborhood. About 250,000 square feet of publicly accessible green space will span the project, fostering a walkable and sustainable urban pedestrian-friendly environment with improved pedestrian walkways, enhanced landscaping and beautification, bike paths and shuttle service for residents.

The Little River District will also prioritize transit accessibility with a planned new Tri-Rail train station, representing a significant $35 million investment being made by SG Holdings in Miami’s public transportation network. This development will reduce congestion, improve accessibility, and foster better connectivity within the project site and the broader urban core.

The residential communities planned within the affordable and workforce housing component will feature amenities including swimming pool, computer lab with printer access, fitness center, outdoor recreation space for children, bike parking, green outdoor space with pavilions and walking and bike paths, free Wi-Fi in common areas, onsite-property management, gated parking lot with restricted access, generators for the community spaces, and security cameras with car plate readers. In addition, the high-quality residences will include in-unit washers and dryers, granite countertops, dishwashers, refrigerators with ice makers, central air and smart fan systems, electric water heaters, tile floorings, and complimentary high-speed internet for three years.

Additionally, the major redevelopment is going to generate significant job creation locally. Approximately 3,840 jobs will be generated during the project’s construction and another 518 permanent positions once delivered. The impactful project will prioritize local hiring preferences for both the construction and permanent jobs, including low-income and public housing area residents. Also, the County will reap approximately $9.5 billion through this project – the largest revenue sharing pact of this kind in the County’s history. The County could use these revenues to support its efforts to address the affordable housing crisis in Miami-Dade and invest in community development, inclusive of supporting small businesses.

Construction is expected to begin in 2026, with a projected development timeline of eight years. Once completed, the Little River District will stand as a model for large-scale, community-driven redevelopment centered on creating affordable and workforce housing, exemplifying how public-private collaboration can drive meaningful, long-lasting transformation in an urban setting.

Shoma Group Unveils New Mixed Use Project Shoma 88

Shoma Group, a prominent Miami-based developer, has introduced Shoma 88, a mixed-use development poised to redefine the living experience in Kendall. This project signals a significant stride for Shoma Group, highlighting their dedication to providing housing options that blend affordability with luxury living experiences.

Masoud Shojaee, CEO and Chairman of the Board at Shoma Group, expressed excitement for the project, stating, "Kendall holds a special place in our hearts. Shoma 88 represents an opportunity for us to showcase our growth and evolution while maintaining our commitment to quality and community. We're enthusiastic about reintroducing luxury living to Kendall, where our journey began."

Standing 28 stories tall, Shoma 88 boasts 405 rental units, each offering a generous 920 square feet of space. With inclusivity in mind, Shoma Group has designated at least 40 percent of the units for workforce housing, ensuring accessibility for Kendall's essential workforce.

Shoma 88 offers a holistic lifestyle experience by integrating residential living with essential services and amenities. The development encompasses dedicated office space, providing residents with convenient coworking options and fostering a dynamic live-work environment. Additionally, 105,000 square feet of medical office space and 8,000 square feet of retail space will cater to residents' needs for essential services and amenities.

Residents will have access to a wide range of state-of-the-art amenities, including a rooftop pool with barbecue areas, a fully equipped gym, a sauna, a business center, a dedicated kids’ playroom, and a clubhouse. Stephanie Shojaee, President of Shoma Group, underscored the project's inclusivity, stating, "Shoma 88 is more than just luxury living. We're creating a space that meets the diverse needs of the Kendall community, fostering a vibrant hub for residents, workers, and local businesses."

Groundbreaking for Shoma 88 is slated for the first quarter of 2025, with an estimated completion date within 30 months. Shoma MGMT, led by Stephanie Shojaee, will oversee leasing and management for the property, designed by the renowned PPK Architects.

Housing Trust Group Delivers Flagler Station Affordable Apartment Community in West Palm Beach

Housing Trust Group (HTG), a developer of market-rate and affordable housing, has completed Flagler Station, a new $33 million affordable apartment community located in downtown West Palm Beach, Florida. It is the first new affordable apartment community to be built in the city’s downtown in 30 years.

A public-private partnership between HTG, the City of West Palm Beach and Palm Beach County, Flagler Station features 94 apartments reserved for residents earning no more than 30, 60, 70 or 80 percent of area median income, with rents ranging from $393 to $1,689. The property is ideally located just one block from the Florida TriRail/Amtrak station and five blocks from the Brightline commuter rail station connecting West Palm Beach with the cities of Miami, Fort Lauderdale, and Orlando.

The developer hosted a grand-opening ceremony with partners to commemorate the milestone on Monday, August 7. Speakers included Matthew A. Rieger, President and CEO of HTG; City of West Palm Beach Mayor Keith A. James and District 3 Commissioner Christy Fox, State House Representative Jervonte ‘Tae’ Edmonds; District 88, Executive Director Jonathan Brown from Palm Beach Housing & Economic Development Department, and Board Chairman Mario Facella of Florida Housing Finance Corporation.

“With a thousand people moving into Florida each day, investment in affordable housing has never been more essential,” said Rieger. “Flagler Station will provide much-needed housing for West Palm Beach’s service workers, first responders, teachers, and other lower-wage workers who play vital roles in the city’s economic success, but simply can’t find adequate, well-priced apartments near their jobs.”

According to Marcus and Millichap, the average rent in West Palm Beach jumped by more than 40 percent since the end of 2020, to $2,432 per month in March 2023. Sticking to the 30 percent rule, an individual or family would need to earn close to $100,000 per year to comfortably afford rent in the city.

"We extend our heartfelt gratitude to Housing Trust Group for their unwavering commitment to bringing affordable housing to the City of West Palm Beach. This partnership marks a significant milestone in our journey towards a more inclusive and vibrant community. We eagerly anticipate the positive impact this development will have on the City and its residents," said City of West Palm Beach, Mayor Keith A. James.

Located at 991 Banyan Boulevard, Flagler Station is an eight-story, high-rise property with a mix of one-, two- and three-bedroom apartments. Community amenities include a 3,200-square-foot, double-high multi-purpose clubroom, a computer/business center, a rooftop pool, a state-of-the-art fitness center, and on-site parking.

Named after Henry Flagler, the 19th-century industrialist who built the Florida East Coast Railway (FECR), Flagler Station’s site includes some of the original, now defunct FECR tracks, which have been incorporated into the development as part of a linear park featuring original artwork and murals. The City’s intent is to build out this park along the rest of the rail right of way to make it a true “rails to trails” conversion. This supports a transportation and mobility plan that the City adopted in 2018 featuring an integrated system of bike lanes, busways, train stations, trolley routes, sidewalks, and roads to reduce car traffic and make the city more pedestrian-friendly.

The building’s architectural design echoes the “brutalist” style that characterized the Old West Palm Beach City Hall, now demolished, and the Federal Courthouse buildings. With its partner, Corwil Architects, along with city officials, HTG delivered a design that is both contemporary and historic in its aesthetic. Archways were incorporated into the building facade to showcase structural elements, while giving reference to the Beaux Arts architecture of Grand Central Terminal.

Financing sources for Flagler Station include $23.27 million in 9% low-income housing tax credits through the Florida Housing Finance Corporation (FHFC) that were purchased by CREA; a $20.3 million construction loan from KeyBank; an $8.93 permanent loan through Freddie Mac; a $75,000 City of West Palm Beach loan; a $314,446 Palm Beach County grant; and a $550,000 HOME loan from Palm Beach County.

The project team for Flagler Station is general contractor Rinaldi Construction, engineer and landscape designer WGI, Inc., architecture firm Corwil Architects, and interior designer B. Pila Designs.

Images via Tony Tur

MV Real Estate Holdings Locks Down Construction Loan And Breaks Ground On Miami Senior Affordable Housing Development

The first project in collaboration between Miami-Dade Public Housing and Community Development (PHCD), Miami-Dade Parks, Recreation and Open Spaces (PROS), and Miami-Dade Transportation and Public Works (DTPW) with the private sector created to provide attainable housing solutions to seniors has been given the green light to begin construction. MV Real Estate Holdings, LLC is set to break ground on the highly anticipated Ludlam Trail Towers on March 14 in Miami, Florida. Positioned between Coral Way and Southwest 69th Avenue intersection, the project is estimated to cost $25 million.

Centennial Bank provided a $7.5 million construction loan to Ludlam Trail Towers, LLC. The Bank’s SVP, Senior Commercial Loan Officer Yuleisy Montalvo, worked jointly with Lument, who is providing a guaranteed Freddie Mac permanent takeout with a fixed rate to Ludlam Trail Towers upon receipt of its certificate of occupancy (CO). Centennial Bank is a full-service financial institution with branches in Florida, Arkansas, Alabama, Texas, and New York and nearly $24 billion in total assets.

“This project is the culmination of the vision of the elected County officials and administrators seeking to help the most vulnerable in our society, the County Parks Department looking to bring the Ludlam Trail to fruition, the Miami-County Department of Transportation seeking to provide connectivity to the Trail over Coral Way and MV Real Estate Holdings who is contributing private dollars and will ultimately be building and executing on this vision that we believe will be transformative to so many,” said Alex Mantecon, managing partner of MV Real Estate Holdings.

Led by Alex Mantecon and Guillermo D. Vadell, managing MV Real Estate Holdings members, Ludlam Trail Towers is expected to redefine attainable housing solutions in a submarket that has not seen any projects with similar characteristics in over a decade. The funding of this project was a collaboration of private equity dollars and four different funding sources at the County level with financing provided by Centennial Bank who provided the construction loan, Lument who provided a Freddie Mac forward commitment and a Miami-County Surtax gap funding loan. This structure allowed the construction lender to be more aggressive in this challenging environment. The financing teams were spearheaded by JC de Ona and Yuleisy Montalvo at Centennial and Marc Suarez at Lument.

“It is great to see not only the public private partnership step up but also the capital markets to support the development of affordable housing,” said Marc Suarez, Managing Director at Lument.

"We are honored to be part of a project that touches upon so many critical needs in our community and to shed light into a parcel of the population that is often forgotten," said Alex Mantecon, managing partner of MV Real Estate Holdings. "There is no doubt that Ludlam Trail Towers will redefine urban living in Miami-Dade County for the elderly while at the same time creating a one-of-a-kind amenity in the Ludlam Trail linear park to be enjoyed by all."

The 64 rental units development composed of two buildings with four and five-story will encompass 760-square-foot one-bedroom, one-bathroom units to 1,000-square-foot two-bedroom, two-bathroom residences. The towers on either side of Coral Way will be connected by a pedestrian bridge that spans over Coral Way and will be a part of the Ludlam Trail.

The project will leverage its exclusive location with direct access to the Ludlam Trail linear park and include a multipurpose room available for the public, allowing residents to interact with them while allowing them to participate in fitness activities. The property is located along the Ludlam Trail, a 6.2-mile multiuse public trail running north to south from Miami International Airport to Dadeland Mall. It will connect with the Underline and circle back to Downtown Miami, thus creating 16 miles of uninterrupted trails inside our urban core.

“Our seniors struggling with rising costs across the board deserve access to safe and affordable housing," said Commissioner Kevin Cabrera. "I’m excited to see the construction of the Ludlam Trail Towers, which help the seniors of our district live out their golden years with dignity. Looking forward to continuing to work with our partners on initiatives to tackle our community’s housing crisis.”

The Ludlam Trail Towers is one of the many scheduled residential projects for the trail as part of the redevelopment of the abandoned railroad track. Additional projects on the trail include a 312-unit apartment complex on the Bird Road Node also led by MV Real Estate Holdings in partnership with Altman Companies and Mattoni Group, an 84-unit workforce housing complex on 8th street, and a 950-unit apartment building with retail stores, and a dog park on 8th street as well; every project is currently in different phases of development.

First Florida is the General Construction company responsible for Ludlum Trail Towers with an expected completion date by the summer of 2024. Reservations will be available starting spring of 2024.

Aimco Partners with Camillus House and Provides $1 Million Contribution to Advance Workforce Development

Apartment Investment and Management Company (“Aimco”), a diversified real estate investment company, has pledged $1,000,000 to Miami-based Camillus House to support expanded workforce development programs. 

In discussions with Miami’s civic and community leaders it became clear that despite a strong job market, many of Miami’s residents don’t possess the necessary skills or experience to obtain better-paying jobs and are, therefore, unable to benefit from Miami’s rapidly growing economy.  As a major investor in South Florida, it is important to Aimco that those at all levels of the economic spectrum have the opportunity to excel and in turn, contribute to the broader community. 

Since its founding in 1960, Camillus House has been a pillar of the Miami community. Created to provide meals and spiritual comfort to homeless Cuban exiles and other poor and hungry Miamians, Camillus House has grown steadily into one of the largest providers of services to the most vulnerable population in the community. Camillus House houses more than 1,700 people nightly through its 11 residential facilities and scattered-site apartments across Miami-Dade County. Some of its programs include Day Center services, Specialized Street Outreach programs, Homeless Prevention initiatives, and comprehensive workforce development and life skills programming. 

“Many people experiencing homelessness want to work, but without the necessary training and skills it’s extremely difficult for them to earn enough income to move forward,” explained Hilda M. Fernandez, Camillus House CEO.  “Thanks to this critical and very generous multiyear grant from Aimco, we can now expand our workforce development program to provide the guidance, support, and vocational training that can help prevent homelessness and change the lives of the great many men and women we serve throughout Miami-Dade County.” 

In partnership with Aimco, the Camillus House Workforce Development Initiative will provide opportunities to Camillus House residents such as participation in construction trade programs operated by Florida International University and funded by Southeast Overtown/Park West Community Redevelopment Agency, an eight-week culinary certificate through the Miami-Dade College Culinary Arts Program, and employment opportunities with the Downtown Enhancement Team through the City of Miami’s Downtown Development Authority and Omni Community Redevelopment Agency.

In addition, through its Aimco Cares program, Aimco will sponsor scholarships to individuals in the Camillus House program designed to remove barriers to employment for those looking to obtain or maintain a job. The scholarships will cover job-related costs, such as bus passes, licensing fees, uniforms, classes, and similarly required ancillary costs crucial to succeed in gainful employment opportunities.

“Aimco Cares’ mission is to empower the most vulnerable by giving them the tools required to improve their quality of life,” said Jennifer Johnson, Aimco’s Executive Vice President and Chief Administrative Officer. “Being able to obtain and maintain higher-paying jobs is the building block for a long-term and sustainable solution for many Miami residents. As a real estate developer, it is our responsibility to give back to the communities in which we are active and passionate. Aimco is thrilled to be part of the Miami community and looks forward to future investments in the City and its residents.” 

Coral Rock Development Group Announces Mixed-Use Workforce/ Affordable Housing Project Buena Vida In Little Havana

Coral Gables-based Coral Rock Development Group today unveiled plans for Buena Vida, a Little Havana-based workforce/affordable housing mixed-use project. Located at 22nd Avenue and Flagler Street, Buena Vida will encompass 175 units of workforce and affordable housing boasting a compelling mix of one, two and three-bedroom floorplans ranging in size from 471 to 1,105 square feet along with structured parking. The eight-story project will also include 15,000 square feet of retail space.

Full-service featured community amenities will include a gym, dog park, conference center, pool and BBQ area. The retail space will include a medical wellness center for the benefit of residents and the surrounding area, along with a mix of retail shops and restaurants designed to enrich the neighborhood.

Buena Vida was designed by RSP Architects. Groundbreaking on the project will begin in 2022 and is scheduled for completion in 2023.

“We are very pleased to announce Buena Vida and create a high-quality workforce/affordable housing offering for families and seniors,” said Michael Wohl, principal of Coral Rock Development Group. “We are grateful for the support of Commissioner Joe Carollo in seeing our vision come to life to add to the growth and development in the Little Havana neighborhood. His endorsement has been critical in bringing this forward. As we’ve seen throughout the pandemic and the disruption of livelihoods for so many members of our community over the past year, now more than ever there’s an overwhelming need to provide apartments for those who cannot afford the high current market rate and are as a result paying a high percentage of family income for rent.”

Coral Rock Development Group is also developing Pura Vida Hialeah, a nine-acre major mixed-use development set to be the first of its kind in more than 20 years. Pura Vida Hialeah topped off earlier this year and is on schedule for completion in Q1 2022.

Rendering via RSP Architects/ Coral Rock Development Group

New Urban Development Proposes View 29 With Affordable And Workforce Housing In Wynwood

New Urban Development, an affiliate of non-profit organization The Urban League of Greater Miami, has proposed View 29 in Wynwood. The residential project is located at 2901 NW 2nd Ave. and will offer a mix of affordable and workforce housing to help address the shortage of affordable housing in Miami. The 27,717 SF site was deeded by the county to New Urban Development in 2020 in exchange for the development of affordable and workforce housing.

View 29 is designed by MC+G Architecture and will rise 12-stories, offering 116 apartment units, 105 parking spaces and 6,910 SF of ground floor retail. The unit mix is expected to offer 30 studios, 18 one-bedroom units, 58 two-bedroom units and 10 three-bedroom units. Residences would range from 650 SF to 1,200 SF. Amenities will feature a pool, community room, childrens’ room, fitness center, yoga room, business center and a rooftop terrace with a solar panel canopy. The Wynwood Design Review Committee is scheduled to review the proposal on May 12.

Miami-Dade County And Related Urban Development Group Break Ground on Three Round Towers

Miami-Dade County Mayor Carlos A. Gimenez,  Chairwoman Audrey M. Edmonson and Related Urban Development Group (RUDG) have celebrated the ground-breaking of Three Round Towers B&C and Brisas del Este, an affordable housing development encompassing three buildings for a combined total of 383 units in the Allapattah area of Miami-Dade County. They were joined by a special guest on this occasion, the Honorable Dr. Benjamin S. Carson, Secretary for the U.S. Department of Housing and Urban Development.

The Three Round Towers development was originally built in 1970 on approximately 6.98 acres and included three towers (Towers A, B and C), a Community Center and parking for residents. Tower A was substantially renovated in 2018 by Related Urban. The current renovations are focused on the major rehabilitation of Towers B and C along with the construction of Brisas del Este, a new 120-unit affordable housing project. RUDG, the affordable housing arm of prolific developer Related Group, will serve as Miami-Dade County’s developer partner. 

The rehabilitation of the two existing towers and the new construction of Brisas Del Este will result in stylish, well-appointed residences tailor made to serve a primarily senior population through elevated accessibility options. The projects will serve residents from 30% area median income (AMI) up to 80% AMI and will be completed in the beginning of 2022.

“By fully leveraging multiple financing sources, our County is paving the way more for smart projects that create vital affordable housing for our residents,” said Miami-Dade County Mayor Carlos A. Gimenez. “Miami-Dade’s public-private partnership with Related Urban Development Group has been a key component leading to the success of this particular project, and I look forward to the County’s continuing wise use of P3’s moving forward.”

The total development cost for the three buildings is more than $106 million. The layering of financing makes this development the largest of its kind in the nation  utilizing Opportunity Zone Funds ($24 million) in combination with other federal and HUD resources, such as Low-Income Housing Tax Credits (LIHTC), Rental Assistance Demonstration funding (RAD), Home Investment Partnerships (HOME) from the City of Miami, and a Purchase Money Mortgage (PMM) of $18 million from Miami-Dade County to the developer. County and State surtax funds are also being invested in the project. More importantly, the Opportunity Zone investment of $24 million was made by personally by Related Group CEO Jorge M. Peréz.

“The redevelopment of Three Round Towers and the addition of Brisas Del Este leverages the widest range of financing available in affordable housing development,” said Albert Milo, Jr President of RUDG. “It is truly a first-of-its-kind project made possible by our partners at the County, who we have worked with over a dozen times to create transformative affordable housing solutions across Miami-Dade. Through collaborations like this, we are able to continue making a real difference for the residents of the communities we build in.”

“With this project we are proving that Opportunity Zone funding is scalable for major affordable housing developments,” said Michael Liu, Director for Miami-Dade Public Housing and Community Development (PHCD). Liu continued, “With a visionary like Jorge Perez and extraordinary builder in Albert Milo, our plan to transform all of our public housing with private sector partners will succeed.” 

Why Rent Strikes Are Bad for Everyone and What’s Going to be Done about Unemployment?

Since thousands of businesses were deemed non-essential and forced to shut their doors, reemployment assistance claims over the last six weeks have surpassed two million in South Florida. With a tourism-dependent economy plus an older population, Florida is more vulnerable to economic shock, which is why it is one of the top five states with the highest number of claims. The longer the standstill goes on, the worse the economic fallout will be. 

As May rents come due and unemployment rates continue to jump, providing assistance to households should be a top priority for policymakers. The prospect of a rent strike has been trending in the news and on social media, but a voluntary movement to skip rent payments could destabilize not only the housing market, but the American economy as well. How many months of working capital do small businesses have to stay afloat, in order for those furloughed and laid off employees to have jobs to return to after nationwide and state stay-at-home orders are eased and how will South Florida’s real estate market fare in the coming months? 

May Day: May 1st Is Here

Multifamily landlords were pleasantly surprised with April collections. In an exclusive webinar interview hosted by PROFILE last week, President of Tate Capital, James Tate, who has over $1B assets under management, told us “We’re 90% collected,” talking about his 10,000+ door multifamily portfolio. Now it’s May 1st and everyone is wondering what May rent collections will be. “May 1st will be a good deciding point to see how many people default,” added Allen Morris, Chairman and CEO of the Allen Morris Companies.  

Morris said his April multifamily rent collections were at 95%. He’s opening two new apartment buildings in Orlando this summer and is taking a proactive leasing approach. “People are signing leases, assuming the University of Central Florida is holding its fall semester. We’re giving tenants a guarantee in their lease. If they delay opening the university, we will delay rent until school opens.” Offering tenants flexibility gives them the security to sign leases now and is helping to forge a positive landlord-tenant relationship that will be dependent on open communication, should issues with payment arise in the future. 

Trending: Socialist Whispers

With talks of rent strikes sweeping the country, landlords have been portrayed as vultures preying on the pockets of financially insecure tenants, when they remain responsible for property taxes and other carrying costs that help pay for public improvements, education and other municipality benefits. Diligent landlords are communicating with their tenants and weeding out those who are taking advantage of the public health crisis, says Shahab Karmely, CEO of KAR Properties. Those who can, should pay rent to support the services their communities need. Those directing their frustrations toward landlords may have valid concerns: with the economy shut down by government-mandated order, how are people supposed to pay bills and keep businesses running?  

In New York, politicians pushing socialist rhetoric and big government reach such as Alexandria Ocasio Cortez have called for rent strikes and rent cancellations. Movements in New York City even claim to have “identified” landlords who can take a “shave”. Lack of payment means that owners will not be able to stay in business and manage the building to the tenant’s expectations, including paying for things like common area maintenance (think: how much does it cost for a cleaning crew to wipe down all public surfaces in a building multiple times a day). Landlords also pay property tax, insurance, debt service, management fees and capital expenditures for improvements. 

Most commercial real estate investments are made by an owner contributing an equity portion to a project, but a majority of the total costs are funded through debt that is usually collateralized by the asset (if it’s senior debt). Typical sources of debt include pension and life insurance funds, which could be the life savings of either a tenant or a landlord. When landlords are unable to meet their debt obligations, the cascading effects don’t stop at their coffers, but trickle down to all Americans. Not making rent payments could derail future opportunities for many, including someone’s retirement age. 

Karmely added “The real pandemic to hit New York City multifamily was the legislature that strangled the landlords in this business,” which will continue to make Florida’s real estate investment climate more attractive. Multifamily product in New York City has been trading between 3-5% cap rate, depending on the neighborhood. The low trading cap rates for core product has made some investors nervous about paying such a premium for an asset that the New York government has so much control over. 

Another risk for New York investors is that South Florida’s pricing for comparative rental and condo inventory is cheaper than it’s NYC counterpart, while providing higher quality-of-life with more space and building amenities. From an investment perspective, it is also easier to manage assets in Florida where there is no government-enforced rent control, rent stabilization, or near-impossible eviction procedures for delinquent tenants.

Opportunities on the Horizon

The cure to the virus is causing an economic calamity that is hitting everybody and everything, which means opportunities will be on the horizon three to four months from now when property owners' cash reserves run dry, especially for retail and restaurant real estate assets. 

Many have posited, is the cure worse than the virus? How long can residential and commercial tenants pay their rent amid an economic shutdown? Will we be able to produce our way out of a recession with unemployment in the double digits? Likely not - Uncle Sam will be waiting in the shadows with hand outstretched to collect his dues. As we all sit on the sidelines, awaiting our fates, the solution appears to be a function of time. 

“My biggest concern is that we were hit with an 11 magnitude earthquake, and we all got knocked down. Unfortunately, after a major earthquake in coastal areas there is a tsunami. My concern is how are these small businesses supposed to remain open and sustain themselves for the next six to eight months unless something material is done by the federal government? Who’s going to hire those 30 million unemployed people back? If you ask me why I can’t sleep at night, that’s what I’m really concerned about,” opined Tate to cheers of “Jimmy Tate for President!” 

-- Special reporting by the PROFILEmiami Team. Isabella Zimmermann, Katya Demina and Demetri Demascus contributed to this article.