Round Hill Capital Invests in Florida Workforce Housing
- Apr 09, 2019
European property investor Round Hill Capital has revealed that it is teaming up with U.S. developer Affiliated Development on a 142-unit workforce housing project within a federal Opportunity Zone in Fort Lauderdale, Fla. The project, called The SIX13, marks the maiden investment for a joint venture under which the two firms plan to develop a multifamily portfolio in South Florida.
Multi-Housing News has learned that the development has broken ground. The project has received $7 million in gap financing through Fort Lauderdale’s Community Redevelopment Agency. City National Bank is providing a $19.3 million construction loan for The SIX13, which is scheduled to open by the summer of 2020.
The SIX13 will offer modestly-priced rental units aimed at residents who cannot afford the booming downtown Fort Lauderdale market. The property will feature a suite of amenities including an elevated pool deck, private dog park, fitness center and co-working facility, as well as 5,900 square feet of ground-floor retail space and nearly 200 garage parking spaces.
Located at 613 N.W. 3rd Ave. in the Progresso Village district of Fort Lauderdale, the property is situated two blocks west of the revitalized Flagler Village neighborhood and is nearby the new Fort Lauderdale station of the Brightline express inter-city rail service. The site falls within a Qualified Opportunity Zone and can therefore benefit from the tax incentives provided under the federal program established by the Tax Cuts and Jobs Act of 2017.
Round Hill eyes U.S. housing
“The SIX13 is exactly the type of investment that the Opportunity Zone program is intended to generate,” commented Rob Reiskin, senior managing director & head of Americas at Round Hill Capital in a prepared statement. “South Florida is an attractive region with strong demographics and a highly skilled workforce that has been increasingly priced out of the region.”
Round Hill has acquired more than 100,000 residential units throughout Europe, and the Florida foray comes as the London-based firm seeks to build up a portfolio of stable, income-producing multifamily assets across the U.S. The global fund manager closed on its first stateside investment last November by partnering with Cortland to acquire The Exchange at North Haven, a 411-unit apartment community in the inner-ring suburbs of Atlanta.
In the statement, Round Hill indicated that the new joint venture with Fort Lauderdale-based Affiliated Development is building up a significant multifamily portfolio in underserved markets of South Florida, along with workforce housing projects in other Qualified Opportunity Zones. The strategy targets opportunities that create a positive social impact, the firm added.