MIAMI—Residential buildings are rising across Miami and Brickell remains a hot spot. But there's still a lack in one sector of Miami's residential market—affordable housing.
GlobeSt.com caught up with Mitchell Friedman, a partner at Pinnacle Housing Group, to get his thoughts on affordable housing and discuss how his firm's latest project fits into the mix. Be sure to come back to this afternoon's Miami edition for part two of this exclusive interview.
GlobeSt.com: There are residential buildings going up all over Miami. Why is this one unique?
Friedman: Brickell View Terrace is literally one-of-a-kind, being the first residential development comprising both market-rate apartments and affordable rental housing in the City of Miami. This is a very common model in New York, San Francisco, and other major US cities—but it has not arrived in Miami until now. Given that Miami ranks among the least affordable cities in the country, Brickell View Terrace will fill a significant need in a market that has been dominated by luxury residential product.
GlobeSt.com: Who will benefit in the Miami community from a mixed-income development?
Friedman: The building will be home to a diverse group of residents, including people working in and around the Brickell and downtown area and young professionals who want an urban setting but can't afford to live in a luxury condo. One hundred units in Brickell View Terrace are allotted for those who make 60% or less of area median income, while 76 units will be priced at market-rate.
GlobeSt.com: Mixed-income developments tend to be popular in other major US cities. How come that hasn't been the case in Miami in the past?
Friedman: Never before has Miami had such a high need for affordable housing, as the urban core gains popularity and luxury condo developers are buying all of the land, therefore land prices are sky rocketing. his is essentially blocking out affordable housing developers from buying land and developing in the urban core, where the need for this product is particularly high. Mixed-income development allows us to make the numbers work on cost to bring affordable housing to this area, without the market-rate component, it would not be a viable option.
GlobeSt.com: Why is Miami's Brickell urban core the right place to make this work?
Friedman: This type of project works best near major employment centers like Brickell and Downtown Miami because people want to live near their jobs and in population centers. Brickell View Terrace will offer residents the opportunity to use mass transit, with a Metrorail station across the street. These amenities will appeal to both segments of our resident base—the affordable housing residents and the market-rate tenants alike.
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