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Wynwood Dev Site Goes On The Block For $30M

Doug Levine is listing three Wynwood retail buildings primed for redevelopment, with an asking price of $30 million.

The Crunch Fitness founder and real estate investor is looking to sell the fully leased properties at 2324-2328 North Miami Avenue and 36-38 Northwest 24th Street, according to an offering.

Levine paid a combined $5.9 million for 0.7-acre assemblage in 2013 and 2014, records show. The buildings were completed in 1928 and 1950.

The three buildings, totaling 25,855 square feet, are fully occupied, but the majority of tenants have expiring leases, the offering states. Tenants include 305 Degrees Burger Bar and Back Door Monkey bar nightclub.

The site also comes with a liquor license.

Potential buyers can redevelop the properties into an eight-story to 12-story mixed-use project with either 108 residential units or  216 hotel rooms, the brochure states. Under Wynwood’s zoning overlay, developers can also obtain bonuses to build an additional 54 residential units or an additional 108 hotel rooms.

Levine is also willing to provide seller financing of up to 50 percent of the portfolio’s value, according to the offering.

 

Source:  The Real Deal

 

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Miami Beach South Of Fifth Projects Could Score More Density

In Miami Beach’s South of Fifth neighborhood, more density is the carrot. And three hotel owners are the rabbits.

And at least one of those hospitality landlords, an affiliate of Miami-based Key International, is eyeing that carrot.

The Miami Beach City Commission on Wednesday approved a measure that would encourage South of Fifth hotel owners to redevelop their properties into condominiums or multifamily projects. By agreeing to convert their land from transient uses such as hotels, hostels and short-term rentals to residential use, the owners would get an increase in the allowable floor area ratio, or FAR, to 2.75 from 2.0, according to a city memo.

Key International owns the Marriott Stanton South Beach at 161 Ocean Drive, through its affiliate Komar Investments, records show. The Key International affiliate is interested in exploring possible redevelopment of the 224-room hotel and taking advantage of the density bonus, said Christopher Penelas, an attorney for the hotel owner.

The legislation, sponsored by Miami Beach city commissioner Alex Fernandez, was mandated by Miami Beach residents. In November, 66 percent of voters approved a referendum directing the city to enact the legislation.

In order to receive the density bonus, property owners must pledge that any new projects will not allow rentals shorter than six months.

 

Source:  The Real Deal

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Rishi Kapoor’s Co-Living, Micro-Unit Project In Miami Beach Scores Approval

Miami Beach commissioners tweaked city development regulations to benefit Rishi Kapoor’s planned co-living and micro-unit project on Washington Avenue.

Commissioners voted 6-1 on Wednesday to give final approval to an ordinance that allows for the development of co-living units on the east and west side of the North Washington Avenue district between 15th and 16th streets. Under the new code, developers have to vow that at least 20 percent of the apartments would be priced as workforce housing and that projects won’t be hotels or hostels.

Kapoor, who leads Coral Gables-based Location Ventures, is under contract to purchase the properties at 1509 and 1515 Washington Avenue. While he has previously declined to share project details, his attorney shed light on the plans during the commission meeting. It’s for 46 co-living apartments, which residents rent by the bedroom but have access to common areas; 48 micro-units that span 275 square feet; and 24 micro-units that span 448 square feet, attorney Michael Larkin said. The micro-units will include kitchens.

The vote stirred a discussion on the dais over the type of housing the city wants to provide, whether micro-units and co-living units truly address the lack of affordable housing, and if the project would amount to party houses.

After some debate, commissioners imposed a minimum lease term of six months and a day. That’s longer than the three-month to four-month terms that Larkin argued for on behalf of Kapoor, though the attorney reluctantly agreed to the longer lease term.

“There are seasonal workers who come here,” Larkin told commissioners. “We greatly prefer to have less than six months.” 

Mayor Dan Gelber said during the meeting that six months and a day would at least allow “all those New Yorkers who come down” to get their tax benefit.

Commissioners Ricky Arriola and David Richardson countered that the project would offset illegal Airbnb rentals in other parts of the city that are fueled by demand from seasonal workers and others who only need to stay in Miami Beach for a few months.

“I think it would actually present some good competition to Airbnbs, and it would put some of those Airbnbs out of business,” Arriola said. 

The ordinance also sets a three-year time limit for Kapoor to apply for a building permit.

The developer already has approval for a six-story co-living project at 1260 Washington Avenue, which is in the South Washington Avenue district. The new ordinance gives him a year to apply for building permits for that project.

 

Source:  The Real Deal

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Multifamily May Outperform Expectations in Q2

It is looking possible that multifamily’s fundamentals in the second quarter will finish stronger than a year ago. It is even possible that the quarter overall may outperform expectations. This is according to CoStar Group, which is basing this premise on April’s rental numbers that are showing every sign that the sector is beginning to stabilize.

“National year-over-year asking rent growth slowed to 2.1% at the end of April from 2.6% at the end of March, vacancy rates held steady and 34,000 units were absorbed, signaling a strong start to the second quarter,” says Jay Lybik, National Director of Multifamily Analytics at CoStar Group.

It is welcome news for the category, which CoStar had put on alert about a month ago that the following 90 days were critical for apartments. The firm’s hope was that absorption can match deliveries by the end of the second quarter to help stabilize this sector, Lybik said at the time. Yet, there’s no guarantee since risks are prevalent, including a potential weakening in the labor market and tighter financial conditions, he noted.

One month later and it appears multifamily may be over the hump.

“With the peak leasing season now underway, multifamily conditions started to show signs of stabilization,” Lybik said.

National average rents rose by 4% to $1,656 from $1,650 last month’s April, according to CoStar. And Heartland Indianapolis showed the highest year-over-year rent growth by a much bigger climb to 6.1%, which was ahead of the nearby Midwestern cities of Cincinnati, Columbus, St. Louis. In fact, the Midwest region took six of the top 10 rent growth spots in April. Fifth in place was San Diego, followed by Chicago, Boston. Northern New Jersey, Cleveland and with Miami coming in tenth.

In other markets, however, year-over-year rent growth slowed as demand for multifamily weakened. Among those are some in the Sun Belt where the uptick is headed down after those markets grew quickly when renters relocated in recent years.

 

Source:  GlobeSt.

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Kushner, Faith Group And Immocorp Capital JV Plan Mixed-Use Apartment Project In Wynwood

Kushner Companies entered into a joint venture to develop a mixed-use apartment complex in Wynwood, as the New York firm completes its first projects in the neighborhood.

The latest development, to include 325 apartments and roughly 20,000 to 25,000 square feet of retail space, would rise on the Soho Studios event space site at 2136 Northwest First Avenue. The joint venture, which was finalized last month, is with the Faith Group and Immocorp Capital, according to sources. Faith and Immocorp are both based in Aventura.

Faith Group’s Soho LLC has owned the main parcel since 2009. Property records show Soho LLC secured an $11.3 million mortgage in March that can be increased to $22.5 million. Faith will likely transfer the site to an entity that includes all three partners. Construction could begin in 2025, a source said.

Kushner is also working with Immocorp Capital and Faith Group on the multifamily component of a large site south of Steve Ross’ Hard Rock Stadium in Miami Gardens. Gilbert Benhamou, CEO of Immocorp, said the partners plan to break ground on infrastructure work in the third quarter. Construction on the first phase, a 252-unit apartment project, is expected to begin by the end of the year.

The three partners are looking for more opportunities in South Florida, Benhamou said. He called the planned Wynwood development an “out of the box” project.

The Faith Group, led by founder Kevin Faith who represents other members of the Faith family, added to the site in recent years with the corner property at 2159 Northwest First Court. The assemblage totals 1.7 contiguous acres. It includes a 50,000-square-foot building that was constructed in 1929 and expanded in 1964; and a nearly 13,000-square-foot building constructed in 1962.

Kushner made its first investment in Wynwood in 2019. The firm, led by Charles Kushner, his daughter Nicole Kushner Meyer, and Laurent Morali, partnered with the Miculitzki family’s Block Capital Group to build Wynd 27 and 28. The two-building apartment, office and retail project is nearly completed and is being leased. In a separate deal, Kushner and PTM Partners plan a 1,300-unit, two-tower apartment development in Edgewater. In Broward County, Kushner and Aimco also recently sold a piece of their three-lot assemblage near downtown Fort Lauderdale’s Brightlight station for $18.3 million.

Development has exploded in Wynwood for new condominiums, thousands of apartments, office projects and ground-floor retail throughout the neighborhood. Investment has also spread to Wynwood Norte, which underwent a zoning overhaul in 2021 meant to encourage affordable housing development, preserve the area’s character, and create economic opportunities for small businesses and residents.

 

Source:  The Real Deal

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Miami Beach Imposes Regulations For Fractional Ownership Homes

Companies offering fractional ownership of luxury properties in Miami Beach will have to follow new city regulations.

The Miami Beach City Commission on Friday unanimously approved an ordinance that requires condominiums and single-family homes that are owned by investors that buy shares of a property to abide by the city’s law that bans short-term rentals in some neighborhoods.

The fractional ownership ordinance largely targets Pacaso, a San Francisco-based tech company that allows investors to purchase as little as a one-eighth interest in second homes.

In Miami Beach, Pacaso is offering investment opportunities in a condominium and two single-family homes on the Venetian Islands and on Alton Road, according to the company’s website. The minimum investment for the three properties ranges from $385,000 to $867,000.

The new ordinance requires Pacaso and similar firms to have a local manager, available 24 hours a day, for each fractional ownership property in Miami Beach, as well as to comply with a code of conduct. Fractional ownership property managers will also be required to sign affidavits that condos and houses will not be rented on a short-term basis.

City staff worked with the fractional ownership industry to draft the ordinance, Miami Beach commissioner Alex Fernandez said at the commission meeting. Fernandez sponsored the measure.

“We can’t prohibit [fractional ownership,]” Fernandez said. “But this is what we can do.”

In a statement, Pacaso CEO Austin Allison said his company will adhere to the new ordinance.

Pacaso expanded into South Florida in 2021. The company sets up limited liability companies for joint ownership and collects maintenance fees from clients. Pacaso manages more than $200 million of real estate and has annualized revenue of $330 million, according to a press release.

Miami Beach has some of the toughest short-term rental restrictions in South Florida that come with hefty fines for owners who violate the city’s regulations. Sometimes, the city’s crackdown has led to favorable outcomes for property owners. In 2021, the city settled a lawsuit brought by an affiliate of Miami-based Safe Harbor Equity, which owns a four-bedroom house at 3098 Alton Road. Safe Harbor sued the city over short-term rental fines assessed on the property.

Miami Beach agreed to pay Safe Harbor $250,000, as well as waive about $200,000 in fines.

 

Source:  The Real Deal

 

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Apartment Rents Forecast To Grow 0.8% Next Year

If you’ve been dismayed by this year’s apartment rent growth trajectory, brace yourself for 2024. Next year, multifamily rent growth will clock in at 0.8%, according to a new forecast by Markerr, compared to this year’s relatively robust 4%.

The 2024 prediction marks the lowest rent growth since 2020, or shortly after the pandemic began.

But because markets reflect regional differences, a closer look at different areas is important. For example, in 2023, Sunbelt and Tertiary markets are expected to outperform the top100 average, while Coastal and Rustbelt areas will underperform the same group. But within a year, the Rustbelt and Tertiary markets are expected to outperform the top 100 average.

At the top of the MSA forecasts for this year is Albuquerque which is projected to climb to 7.4%, followed by Wichita at 7.3%, Tampa at 7%, North Port, Fla., at 6.9%, Spokane at 6.9%, El Paso at 6.5%, Tulsa at 6.4%, Ogden, Utah, at 6.2% and Palm Bay, Fla., at 6.1%. Then, come 2024, the MSA forecasts shift dramatically with Augusta, Ga., in the lead at 4.1%, followed by Albany, N.Y., at 3.9%, Syracuse at 3.8%, Baton Rouge at 3.8%, Sacramento at 3.6%, Grand Rapids at 3.4%, Jacksonville at 3.1%, Chattanooga at 3.1%, Cleveland at 3% and Harrisburg, Penn., at 3%. And the top10 markets from 2023 are expected to fall to an average rank of 73 out of 100 in 2024.

When MSAs are calculated on a two-year compounded growth basis, Winston-Salem, N.C., North Port, Fla., and Chattanooga are forecast to lead the top 100 markets at 8.6%, 8% and 8 % respectively.

Winston-Salem wasn’t in the top markets in either 2023 or 2024. But it’s expected to jump into first place with the largest contributors to its rent growth being home prices, multifamily permits, job growth and occupancy rate. According to Markerr, “Said differently, home prices, multifamily permits, job growth and occupancy rate are driving the forecast higher while median gross income is forcing the forecast lower.”

In contrast, New York City was in the bottom 10 of the compounded two-year growth forecast at -0.4% because of unfavorable conditions of population growth, historical multifamily rent growth and median gross income.

 

Source:  GlobeSt.

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Recertification Voting Continues For Miami’s Wynwood Business Improvement District

After approval by the City of Miami Commission, starting Apr. 14, the Wynwood Business Improvement District (BID) has been up for a recertification vote by all property owners within its boundaries.

The Wynwood BID, which began in July 2013, is the largest one of its kind in Florida, covering a 50-city-block neighborhood that has experienced an exciting transformation, taking it from an abandoned industrial zone to a bustling arts and nightlife destination.

More recently, Wynwood has become a desirable location for new office and residential developments, and now, major new hotels from the world-renowned Arlo brand and the soon-to-be-launched Moxy by Marriot.

For three weeks, all 400-plus property owners within the BID’s boundaries have been asked to sign affidavits supporting its renewal, which the BID will then collect and count. To proceed with the recertification process, more than 50 percent of the votes, plus one, must be in favor. Once the three-week voting period has concluded, all affidavits will be forwarded to the City of Miami Commission and Mayor Francis Suarez for review and final approval.

“We are excited to collect votes from our area property owners to recertify the BID,” said Manny Gonzalez, long-time executive director of the Wynwood Business Improvement District. “The district has entered a new phase, with the ongoing expansion of residential and office capacity that did not exist previously. Our goal is to have another successful decade of embracing change like urban planning and landscape design while also working to maintain Wynwood’s place as an appealing cultural destination and creative center.”

BIDs function as special tax districts that allow for an additional assessment to support initiatives and programs that governments cannot fully cover. In addition to Wynwood, they have been successful locally in places such as Miami Beach, Coconut Grove and Coral Gables, and other major cities like New York.

In partnership with area businesses, owners, developers and residents, working with the City of Miami, the Wynwood BID has been a significant catalyst in the neighborhood’s growth, improving quality of life, and in ongoing synergies between new investors, and existing businesses and cultural venues.

During the past decade, Wynwood has experienced an exponential increase in visitors, with the number rising from 240 thousand in 2013 to 15 million annually in 2023. Today, Wynwood supports 5,000 new jobs and generates more than 20 percent of the City of Miami’s parking transactions.

In partnership with the City of Miami Planning Department and Plusurbia, the Wynwood BID developed Miami’s first Neighborhood Revitalization District (NRD) plan to maintain the neighborhood’s distinctive street art and industrial feel, while encouraging a 24-hour community for live, work and play lifestyles.

The BID has accomplished significant successes through its partnership with the City of Miami Police Department, resulting in a 60 percent reduction in crime. Additionally, the BID has made a substantial contribution of $3.5 million towards Wynwood Works, a program aimed at developing 5,000 micro units of affordable housing and invested $1 million towards office development in the area.

The BID also has created a Clean Team to remove trash and debris daily to maintain a clean and attractive neighborhood. These notable achievements have garnered national recognition for the BID in the past decade, with awards such as being one of the greatest neighborhoods in America and being recognized for its Economic Development Planning by the American Planning Association (APA).

In the arts, Wynwood continues to thrive and be the home of the iconic Wynwood Walls, Museum of Graffiti, Margulies Collection, Mana Wynwood, Gary Nader Art Centre, the recently opened Paradox Museum, and many more.

The neighborhood remains a center for over 3,000 units of unique retail, restaurant and nightlife businesses, including Zak the Baker, Oasis Wynwood, 1-800-Lucky, Gramps and UNKNWN. Annual special events such as Miami Art Week, Miami Music Week and Wynwood Pride fill the community with pedestrian traffic and excitement.

Major developments in the area include the recently opened Arlo Wynwood hotel and The Dorsey, as well as upcoming projects such as The NoMad Residences, 29N Wynwood, 545 Wyn and The Wynwood Plaza.

Additionally, the neighborhood is experiencing growth in mixed-use residential and office spaces with developments including Strata Wynwood, WYND 27 & 28, Society WynwoodSentral Wynwood and The Gateway at Wynwood. Currently, there is 600,000 square feet of commercial retail space under construction as Wynwood continues to evolve.

Companies committing to office space in Wynwood include Founders Fund, Spotify, Technology SA and Pricewaterhouse Coopers.

The BID supports its City of Miami partners and surrounding communities by running numerous safety and cleanliness initiatives, including state-of-the-art interactive outdoor digital kiosks, neighborhood-wide security cameras and a dedicated Clean Street Team.

“Wynwood property owners and businesses believe in the wisdom of investing in infrastructure enhancements, safety initiatives, forward-thinking planning and destination branding that are key to the BID’s work,” Gonzalez concluded.

For more information, visit wynwoodMiami.com.

 

Source:  Community News

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Electrical Union Looks To Rezone Its Allapattah HQ For New Mixed-Use Development

A union representing electrical workers could rezone its headquarters in Miami’s Allapattah neighborhood to set up a mixed-use development.

The city’s Planning, Zoning and Appeals Board was scheduled to consider the application from the Brotherhood of Electrical Workers, part of International Brotherhood of Electrical Workers Local No. 349, on April 19. It concerns the 1.83-acre site at 1544, 1649 and 1650 N.W. 16th Terrace; 1657, 1601 and 1667 N.W. 17th Ave.; and 1700 N.W. 15th Street Road.

The IBEW has owned the property since 1948. The main structure there is a 27,144-square-foot building that houses its union hall and apprenticeship school.

The union wants to change the zoning from “T6-8-O” and “high-density residential” to “T6-12-O” and “restricted commercial.” The density would be 150 units per acre, which would equate to 275 units on a site of this size.

In the application, the IBEW stated it wants to redevelop the property with a newly designed union hall and apprenticeships schools, plus professional offices, convention spaces, affordable/senior living and workforce residential units.

This would follow the trend of nonprofit organizations and religious groups in Miami capitalizing on long-held property with redevelopment as property values in the city soar.

 

Source:  SFBJ

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Multifamily Series: How Affordable Housing Is Changing

The shortage of affordable multifamily housing continues nationwide. The good news is that developers and architects are bringing solutions to the multifamily market.

It’s no secret that affordable housing is in short supply. Both the single-family and multifamily market struggle to meet the need. According to the National Low Income Housing Coalition, not a single one of the 50 states has an adequate supply of rental housing that’s affordable and available to extremely low-income households—those who earn 20% to 60% of their area medium income. The Coalition pegs the shortage at 7 million homes.

When buildings become available for lease or sale, they fill quickly, and long waitlists result.

Still, multifamily developers and champions face myriad issues: construction, labor, and land costs; lengthy planning and building review processes; restrictive zoning codes that favor single-family residences; and less available funding through tax credits, subsidies and grants, says architect Steven Lee, senior associate with Page & Turnbull(link is external), an architecture, design, planning and preservation firm. Neighborhood resistance to development also remains a deterrent as well.

Yet, for multiple reasons, many real estate experts express cautious optimism.

Developer Jeff Klotz, whose firm, The Klotz Group of Companies, operates in the South and Southeast, is one of them.

“We’re getting people into new housing that’s more energy-efficient and constructed with more durable materials to meet tougher building codes,” he says.

When it comes to design, more widespread efficiencies in layouts pare wasted space and permit more units, while better choices about which common spaces are needed benefit residents—and often the community.

Architect Matt Duggan, with TA , an architecture, master planning, and interior design firm, sees more reason to err on the positive.

“The affordable market is embracing more cutting-edge, sustainable, aggressive goals than the market-rate is, in part because local authorities that offer low-income tax credits and other funding mandate or incentivize doing so, often through competitive requests for proposals,” he says.

Additionally, partnerships between developers, government agencies and nonprofits are on the rise, and more municipalities require new market-rate buildings to include a percentage of affordable units.

In short, dire need in the marketplace means increased calls for creativity and collaboration, and developers are using their industry knowledge, influence, innovations in the spaces and partnerships to make them happen.

Garnering Community Support

Progress on a multifamily project takes community buy-in. Experts agree that involving the larger community—through meetings or calls, for example—makes a difference. When community members have a change to offer feedback and then feel heard, they’re more likely to have an open mind about the project.

Good design that actively reflects the concerns and needs of the community leads to exceptional projects a community can be proud of, Duggan says. Architect Eugene Flotteron, principal and director of architecture at CetraRuddy, an architecture, planning and interior design firm, says another plus is to incorporate common spaces within the building.

Faster, Simpler Approval Processes

Project approval has long been arduous and time-consuming. Experts recommend simplifying the process to gain inventory. Florida’s State Housing Incentive Program requires local governments to establish an expedited permitting process for affordable housing. In St. Petersburg, certified projects qualify for a program that ensures a 10-day response time for initial plan review.

Carol Stricklin, director of Pinellas County Housing & Community Development, encourages developers to ensure they understand local policy priorities for affordable housing and have entitlements in place for a project before applying for funding.

Results are promising when this work is done up-front. In Pinellas County, six affordable developments opened last year, providing 227 new homes. An additional six projects, which will add 970 units, have been approved or are currently under construction. Once buildings are completed, inventory is listed online at Florida Housing Search.

Buildings That Meet Code and Look Good

More buildings are wrapped in layers of insulation and have highly efficient systems to meet stricter codes that save energy costs and improve lives, says architect Carmi Bee, president of RKTB Architects, which designed the 100% affordable development 683 Thwaites Place in New York’s Bronx borough. The project includes insulation for energy efficiency and sound mitigation due to proximity to a subway line. Windows were minimized on the side facing the train and made prominent on the building’s other sides. Their arrangement can enhance a building’s aesthetics. That was the case at builder Structured Development‘s mixed-income Schiller Place Apartments. “Each of the 48 units has an attractive bank of windows,” says Principal Michael Drew.

Maximizing energy efficiency has been a driver for many buildings. Duggan’s firm was hired to design a 59-unit, income-restricted net-zero building in Tiverton, R.I., with the state and a utility partnering to see if the building might generate as much energy on site as it uses. The building, called Bourne Mill Phase 3, is all electric, with solar roof panels and thicker wall insulation.

Affordability shouldn’t come at the sacrifice of style, though. “Challenges such as affordability can make architecture better, something Frank Lloyd Wright expressed,” says architect Victor Body-Lawson of Body Lawson Associates.

Located in a historic mill complex, Bourne Mill Phase 3 has exterior cement fiber panels with lap siding that mimic the mill’s granite palette. TAT’s design for Station 25, an affordable 51-unit building under construction on a downtown Albany site, relates to an adjacent historic brick building in its choice of some materials and detailing. Both buildings incorporate brick stacked vertically rather than horizontally.

The new building also pays homage to horizontal stone bands in the historic building with a playful projecting ribbon that wraps its way around the new building and transforms from a canopy at the main entry to a cornice at the roofline, says Duggan. A courtyard lies between the two structures to create an outdoor “room” that connects the two, Duggan adds.

The Benefits of Combining Affordable and Market Rate

In Chicago, a 2022 change in the tax law provided a tax freeze on a building’s assessed valuation if a percentage of affordable units was included, says Drew. In Fremont, Calif., architecture firm KTGY designed two affordable-housing buildings within a larger master plan led by market-rate clients. The number of affordable units satisfied the city’s requirement for projects to be approved, says architect Jessica Musick, principal. “The buildings anchor the corner of the Metro Crossing master plan community and are designed so they look and feel market-rate,” she says.

The Marcus Garvey Village building in New York’s West Harlem neighborhood represents a similar approach. “It’s the second phase of a development from Carthage Advisors where a 161-unit, market-rate building was completed first,” says Body-Lawson. “The goal was not to have a ‘rich door, poor door’ look, so we made the affordable building as nice and gave it its own character and place,” he says. “Colors are different, but some similar materials such as stucco were used. Cities have to be sustainable to survive, and that includes having a diverse mix of people.”

Straightforward Design

A common mantra today encourages simpler design that translates to lowered expenses. Musick, for example, advocates limiting design decisions to help focus project costs. “Maybe, instead of choosing from 10 window sizes, there are three to consider,” she says. Other options are to limit the number of unit plan configurations for each plan type. This simplifies the list of both construction techniques and materials and should lead to better execution, she says.

In south St. Petersburg, The Shores, a 50-unit affordable complex funded by the city of St. Petersburg and Pinellas County, used quality but affordable touches such as wood vinyl plank flooring, ceiling fans and grab bars in apartments and common spaces.

Smart Locations

Affordability is about more than the building itself. Location is key to help residents get to jobs and services. Transit-oriented developments in particular eliminate or reduce the need for cars and parking. Station 25 in Albany, on an infill site with a bus stop, is within walking distance of an employment center and near Albany Medical Center.

Both the Schiller Apartments and another Structured Development building, The Seng, an affordable-condominium project, are near mass transit. Schiller Apartments is also adjacent to a public park. Klotz’s company likes locations near mixed-use options, so residents feel amenities are almost on their property. His company also scouts for sites where governments have determined a need for affordable housing. That way, he can approach those governments to help sponsor the development in those areas.

Function Over Trend

Affordable buildings might have fewer amenities than market-rate buildings due to their available square footage and budget. Therefore, functionality is prioritized.

“A café, mailroom and lounge may be combined, which encourages socializing,” Duggan says.

An apartment building at 535 W. 43rd Street in New York City developed by Flotteron’s CetraRuddy includes seating in the mailroom.

Another goal is to provide health and wellness benefits for residents and neighbors, he says. Features such as outdoor space are critical and must be protected and secure in an urban environment, Musick adds. At Marcus Garvey Village, residents and the community will have access to green space, a community facility, retail outlets, an LGBTQ center, below-grade parking, and bicycle storage.

Creating Units for Long-Term Use

Unit sizes depend on the project and site, the number of units that make a project work financially, and the municipal requirements for securing financing. But a common goal is to make them look larger and wear better, since that helps to retain residents, Musick says. Design tricks help.

For more space in units, hallways might be eliminated in favor of open layouts or, instead of in-unit laundries, there may be common laundry rooms, Duggan says. For durability, luxury vinyl tile is easier to clean than carpet in units and public hallways. Good lighting expands space visually. Integrated lighting such as recessed cans help residents avoid having the expense of buying lamps, Flotteron says.

 

Source:  Realtor Magazine

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