Redwood JV Lands Financing for Miami-Area Townhome Project
City National Bank of Florida provided the construction loan for a 112-unit affordable development in Opa-locka, Fla.
A gated lakefront townhome project that will offer affordable homes received a $19 million construction loan. Redwood National Properties, an affiliate of BAS Holdings Investments LLC, alongside its joint venture partner Winston Capital Partners LLC, received the financing from City National Bank of Florida. DWNTWN Realty Advisors’ Andrew Kurnit arranged the loan on behalf of the developers.
Brian Sidman, founder of BAS told Multi-Housing News that Redwood and Winston acquired the site at 1719 NW. 143rd St. in Opa-locka, Fla., for $5 million from Sailboat Miami LLC on the same day as the financing’s close. The project site is also located within the existing 59-unit townhome development called The Mirage at Sailboat Cove that was constructed in 2007.
The new project will add 112 units that average 1,516 square feet and are all four-bedroom, 2.5-bathroom floorplans, Kurnit told MHN. The joint venture of Redwood and Winston just began construction, Kurnit told MHN, and will have its first units ready in mid-2021 while the full completion is slated for early 2022. The units will be divided between 23 separate buildings that will house four or five units throughout a 10-acre gated property.
The homes will also be located near Miami’s highways and major employers like Amazon’s Opa-locka fulfillment center and the Miami-Opa Locka Executive Airport.
ADDRESSING MIAMI’S AFFORDABLE HOUSING CRISIS
In looking for residents, the developers are planning to lease up the homes with Section 8 Housing Choice Voucher holders. Kurnit said in prepared remarks that the large townhome style that’s gated and lakefront is unique to Miami’s affordable housing situation, adding that four-bed units are some of the scarcest types of affordable homes.
Sidman told MHN that the South Florida market has been growing for many years and that BAS is looking to fill the void of affordable housing in the area.
“Unfortunately, affordable housing projects have been an oversight for developers focused on the luxury condo and rental segments,” Sidman told MHN. “We keep our business plans tight to our vest, however I will say our plan is dedicated to affordable housing and filling a major need in this market.”
Nearby in Miami, Related is also working on a $106 million affordable housing project alongside Miami-Dade County. In August, the developer started construction on a redevelopment project of a 383-unit affordable housing property. To the east of Miami, a two-building, 250-unit affordable senior housing community in Miami Beach also received a $30 million construction loan that will go towards its $78 million redevelopment.