Affordable housing development on track beside Transitway
A Pinnacle Housing Group affiliate has closed on financing for Verbena, a $31 million transit-oriented affordable housing development just off the Miami-Dade Transitway at Southwest 282nd Street alongside US 1. Construction is to begin this month.
The completed project is to have 110 one-, two- and three-bedroom units in two buildings, one five stories and the other six. Ten percent of the units are for extremely low income families with income below 30% of area median income, with the balance for seniors below 60% of area median income.
The development is to be part of the Leisure City Overlay District, which encourages higher-density residential development. Verbena will target families in need of affordable quality housing with access to jobs and services in the south end of Miami-Dade County. Transit availability is a key part of the project.
Pinnacle purchased the land from Bushog Homestead LLC for $1.8 million in September.
Financing for the development includes $21.5 million of investment equity through the purchase of housing tax credits from Citibank N.A. In addition, Citibank is providing a $23 million construction loan, which is to ultimately be replaced by its equity and a $2.625 million permanent first mortgage by Freddie Mac.
Citibank also provided a subordinate $100,000 low-interest “catalyst loan” to the developer. Miami-Dade’s surtax program provided $5,468,000 in loans to the developer.
The project’s amenities are to include a playground, fitness facility, leasing office and computer labs. Parking is in a two-story detached garage.
Units themselves will include Energy Star appliances and hard-surface floors and countertops. Once completed, the development expects to receive ICC 700 National Green Building Certification.
Pinnacle Housing Group, established in 1997, develops, leases and owns affordable apartments with a development portfolio of more than 8,000 units and a total construction cost of about $1 billion. Verbena LLC, the project’s owner, is a single-purpose entity controlled by the principals of Pinnacle Housing Group.