FORT LAUDERDALE, FL—Better Building Communities, a non-profit affiliate of Broward County Housing Authority (BCHA), has acquired Ocean Drive Estates in Pompano Beach. The sales price for the property, which is earmarked for affordable housing, is $970,000.
The three, one-story multifamily buildings are located at 101, 105 and 111 SE 9th Avenue. Each multifamily building offers 12 two-bedroom, one-bathroom units averaging 750 square feet. Better Building Communities is planning to invest money to rehab the property inside and out.
Ann Deibert, CEO of BCHA, tells GlobeSt.com the location made the site very attractive. The site is located in a stabilized neighborhood on major Broward County thoroughfares offering important transportation to the population the non-profit is serving.
“The property is also conveniently located next to shopping, banking, employment and schools and is approximately two miles from an existing BCHA affordable housing development,” Deibert says. “The close proximity to the BCHA site allows for shared management. The property required minimal immediate rehabilitation and supports a formidable net operating income with a capitalization rate of approximately 8.8%.”
The acquisition of Ocean Drive Estates will further expand BCHA’s affordable housing ownership and management and will add to its affordable rental inventory. The rents at Ocean Drive are lower than average in Broward County, particularly for two bedroom units. That is in line with BCHA’s mandate to provide affordable rental properties for Broward’s workforce while generating additional private revenue stream outside of public sector funding.
As Deibert sees it, affordable properties like Ocean Drive Estates are critically important for Broward County. According to the 2011 Affordable Housing Needs Assessment report by the Metropolitan Center at Florida International University, substantial affordability gaps exist for Broward County renter households earning 80 percent or less than the Area Median Household Income of $62,600.
Extremely cost-burdened renter households—those spending more than half of their income on housing—increased by 51.1% between 2000-2010. The average rent in Broward County is $1,253, with two- and three-bedroom units higher on average. Rents at Ocean Drive Estates average $900 per month.
What’s next for BCHA? Says Deibert, “We are in the exploratory stage considering several acquisitions, as well as development opportunities.”