Can Affordable Housing Developers Compete?

MIAMI—Can affordable housing developers compete with luxury developers on land? Will Downtown Miami ever see more mixed-income residential assets?

GlobeSt.com caught up with Mitchell Friedman, a partner at Pinnacle Housing Group, to get answers to these and other questions in part two of this exclusive interview. You can still read part one: What's Lacking in Miami's Real Estate?

GlobeSt.com: How are you able to compete with luxury developers when it comes to buying land to build this type of asset?

Friedman: It has become increasingly difficult to compete for land with deep-pocketed competitors. This was a special case as we were fortunate to partner with a local not for profit, East Little Havana Community Development Corporation, who had owned this property for some time, so the cost basis for the land was lower than other parcels in the area.

GlobeSt.com: Do you think there will be other mixed-income developments built in Miami's urban core in the near future?

Friedman: Yes. Building mixed-income is a necessity in Miami's urban core. There is very high demand for affordable housing, and the way to bring that to market is by building mixed-income.

With more and more luxury condos popping up, mixed-income will have to serve those who are priced out of the upper reaches of the market. We hope Brickell View Terrace sets off a trend and that other firms in our space will begin adopting this model. 

GlobeSt.com: Are you building mixed-income in any other South Florida markets?

Friedman: We are actually going vertical with Downtown Fort Lauderdale's first mixed-income development, Pinnacle at Tarpon River. In line with our mission to bring affordable housing to our urban core's, Pinnacle at Tarpon River will meet rising demand for workforce housing near existing and future transit and major employment hubs such as the new judicial complex and Broward Health. The community will cater to entry-level professionals, health care workers, teachers, service sector personnel and other public sector employees seeking an urban “live/work” environment.