NEW BRUNSWICK, N.J. — The Community Builders, a nonprofit multifamily developer, has broken ground on Stirlingside Residences, a 53-unit affordable housing project in the Central New Jersey community of New Brunswick. Stirlingside Residences will feature 13 three-bedroom units, 30 two-bedroom residences and 10 one-bedroom apartments, with six units set aside for families and individuals who previously experienced homelessness. The majority (47) of the units are reserved for households earning 60 percent or less of the area median income. Amenities will include a community room, fitness room and onsite laundry facilities. Delivery is scheduled for mid-2025.
BOSTON — Marcus & Millichap has brokered the $5.3 million sale of a 20-unit workforce housing building in the Dorchester area of Boston. The four-story building at 820-828 Blue Hill Ave. offers one-, two- and three-bedroom units across 21,410 square feet of space. Information on specific income restrictions was not disclosed. Evan Griffith and Tony Pepdjonovic of Marcus & Millichap represented the seller and procured the buyer, both of which requested anonymity, in the transaction.
With elevated prices on everything from land to debt financing, insurance, building materials and labor, developers face an uphill climb attempting to pencil out multifamily projects at a profit. That’s why in 2024, developers are opting for practical and convenient amenities over luxury and choosing builder-friendly suburban locations over complex urban sites. And with diminishing room to raise rents on market-rate apartments, many investors and developers are shifting their attention to affordable and workforce housing, where incentives offset some expenses and, ideally, help position projects to deliver positive returns. “Market-rate developers in our region are starting to change their model to embrace more of an affordable product,” confirms Chad Riddle, Atlanta branch manager at Bohler. “Unfortunately, that puts them behind the eight ball because they may not know the tricks of the trade and they are competing with affordable housing developers that already know the business and are thriving.” There is no single strategy to pencil out a profitable multifamily project, but developers are achieving success by sticking to proven, cost-effective design elements and amenities, avoiding costly missteps and cutting down unnecessary spending throughout the development process. Drawing on affordable housing specialists and other in-house experts, Bohler helps clients avoid …
MIAMI BEACH, FLA. — The Housing Authority of the City of Miami Beach and Atlantic Pacific Cos. have broken ground on Vista Breeze, a 119-unit affordable seniors housing development. situated near the Normandy Shores Golf Course at 280 S. Shore Drive. The property represents the largest affordable housing development to break ground in Miami Beach in 45 years, according to the developers. Vista Breeze will feature Miami modern (MiMo) architecture and include onsite parking, a community center and a business center. Units will be reserved for seniors earning no more than 80 percent of the area median income (AMI). The community is funded by $9 million of subordinate debt provided by the Florida Housing Finance Corp.; a $1 million HOME loan from City of Miami Beach; $6 million Surtax loan from Miami-Dade County; $11.9 million permanent loan issued by Citi Community Capital; debt and equity from Bank of America; and bonds issued by the Miami-Dade County Housing Finance Authority. Construction is expected to be complete at Vista Breeze by late-spring 2025.
BOSTON — Beacon Communities has completed the renovation of Lenox Apartments, a 285-unit affordable housing community in the South End/Lower Roxbury neighborhood of Boston. Lenox Apartments comprises 13 buildings and offers one-, two- and three-bedroom floor plans. According to Beacon Communities, the property was originally built in 1939 as the first public housing project in Boston dedicated to serving African Americans. The renovation was funded through a mix of state and federal housing and historic tax credits, as well as public and private loans.
AUSTIN, TEXAS — Cleveland-based multifamily developer The NRP Group has completed The Markson, a mixed-income housing project in the Barton Springs area of Austin. Named after former company executive Dan Markson, the $60 million property comprises 330 units, more than half of which will be reserved for renters earning 80 percent or less of the area median income. Amenities include a pool, dog park, conference rooms, coworking lounge, coffee bar, fitness center, game room, outdoor kitchen, volleyball and bocce ball courts and access to surrounding nature trails. The NRP Group developed The Markson in partnership with the Housing Authority of the City of Austin. Amegy Bank and J.P. Morgan Asset Management provided financing for the project. According to the property website, monthly rents at The Markson’s essential worker living units start at $1,442 while market-rate units start at $1,790.
DALLAS — Los Angeles-based Banyan Residential, in partnership with Bridge Investment Group, has completed Banyan Flats, a 289-unit multifamily project located at 2022 N. Beckley Ave., just west of downtown Dallas. Floor plans feature micro, studio, one-, two- and three-bedroom units ranging in size from 415 to 1,425 square feet. Roughly half the units are reserved for households earning 80 percent or less of the area median income. Amenities include a pool, fitness center, clubhouse, dog wash and a rooftop deck. JHP Architecture designed the project, and J.P. Morgan provided construction financing. Rents start at $1,345 per month for a studio apartment.
LOS ANGELES — Colliers has arranged the sale of an affordable apartment community located at 349 S. La Fayette Place in the La Fayette Park neighborhood of Los Angeles. The asset traded for $43.4 million, or $362,000 per unit. Kitty Wallace and Kalli Knight of Colliers represented the buyer and seller in the transaction. Situated on a 43,000-square-foot lot, the three-story property features 120 affordable apartments. The buyer paid cash to preserve the right to create and maintain affordable housing, and purchased the property with the intent of promoting and advancing workforce and affordable housing initiatives. Built in 1971 and extensively remodeled in 2017, the property features 120 subterranean parking spots with third-party billing for electric vehicle charging stations. Currently, 85 percent of the units are fully renovated. The units feature stainless steel appliances, in-suite washers/dryers, hardwood floors with carpeting in the bedrooms and mini-split air conditioners and heaters. Community amenities include a new roof, updated plumbing and boiler, a resurfaced and modernized pool, built-in barbecue area, redesigned fitness center, electric vehicle charging stations and elevator modernizations. All units also include 100-amp electrical panels and new plumbing to accommodate the installation of in-unit washers and dryers.
NEW YORK CITY — A partnership between locally based developer Foxy Management, social services firm HANAC Inc. and JLD Advisory LLC has completed Garden Towers, a 149-unit affordable seniors housing project in the Morrisania neighborhood of The Bronx. Garden Towers consists of two midrise buildings that house 109 studios and 40 one-bedroom units. All residences are reserved for renters earning 50 percent or less of the area median income, and 30 percent of the units are designated for formerly homeless individuals. Amenities include multipurpose rooms, a social services suite, computer room and onsite laundry facilities. Newman Design served as the project architect, and Lendlease provided construction management services.
LEE, MASS. — MassHousing has provided $5.8 million in financing for an affordable housing redevelopment project in the western Massachusetts city of Lee. The project will convert the two historic former Eagle Mill buildings, which were originally constructed in 1808 and closed in 2008, into a 56-unit complex with commercial space. Units will feature a range of floor plans and income restrictions. The developer is a partnership between Rees-Larkin Development LLC and Berkshire Housing Development Corp.