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Front Page » Real Estate » Micro housing becoming big answer to affordable living

Micro housing becoming big answer to affordable living

Written by on February 8, 2022
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Micro housing becoming big answer to affordable living

Micro housing units are popping out in South Florida to tackle the dilemma of affordable housing while living in the most popular neighborhoods. Developers are bidding in the trend as it is becoming successful.

In areas such as Hialeah, Coconut Grove, Miami Beach and Brickell, where the price of renting regular-sized apartments is increasing, housing development projects that include micro (300 to 400 square feet) units and studio apartment are becoming more popular, said J.C. de Ona, Southeast Florida Division president at Centennial Bank, who works with developers. And these housing units are very welcomed in the market.

“People like the option to have a smaller unit at a more attainable rent,” he said. “For someone who is looking for a nice product in a [desirable] area that is going to be a few hundred dollars less expensive than a standard size unit, it will make a very big difference.”

The Ramada Inn Hotel at 1950 W 49th St. in Alture Westland in Hialeah, which real estate developer The Estate Companies is turning into The One, a multi-family apartment complex with units that are all micro-sized, is an example of this trend. The project was financed by Centennial Bank, is already starting lease agreements with future tenants, and is “experiencing better than they anticipated results,” Mr. de Ona said. “It shows that there is a demand for it.”

The option to have a smaller unit at a more attainable rent is also seen in another project, financed by Centennial Bank and LV Lending, in West Miami, which is a 306-unit development ranging from 450 to 900 square feet apiece, by Miami-based Estate Investment Group. It’s open for leasing but their studios are in a waiting list. The project is called Soleste Alameda, at 6290 and 6320 SW Eighth St.

Mr. de Ona said that closer to downtown there will be more development in micro units, because of the proximity to all the new office developments and growth in the area.

“Wynwood also has been attracting the younger population – millennials who want to live in an area where they’re working, or close to where they work,” he added, “and where they have their lifestyle and walkability.”

Fashion and lifestyle brand Diesel announced in November the launch of a Diesel Wynwood Condominium, a luxury residential development with 159 units, of which 65 are micro-sized, ranging from 395 square feet to about 700, with high ceilings of up to 11.6 feet, said Patrick Pires, chief marketing officer at Diesel Wynwood Condominium.

The 8-story building at 148 NW 28th St., is being developed by real estate investment and development firm Bel Invest, designed by Zyscovich Architects and represented by ONE Sotheby’s International Realty.

“Wynwood is probably the perfect match when you’re thinking about the Diesel brand,” said Mr. Pires, “and this is the first Diesel building in the world.”

The interior common areas are to be designed by the brand’s Diesel Living line, which specializes in furniture, lighting fixtures, kitchen counters, bath and flooring. “The building will deliver a visual renaissance that celebrates living boldly, beginning with an unmistakable façade detailed with a neon sculptural edifice,” said the company’s press release in November.

Other amenities are designed to be co-living spaces that would include a rooftop pool deck, a lounge, gardens that lead into an indoor living room, a dining area, a European-inspired spa, therapeutic steam rooms, aromatherapy stations, and a yoga area.

“The reason why micro-sized units are so popular right now is because people want to live in very popular areas, but they also want to be able to afford them,” said Mr. Pires. “What we’ve done is created these units with very large balconies – 304 square feet – to bring another element of luxury, so you’re buying small but you’re living large.”

Another project bringing an interesting solution to the problem of affordability is a “flex live-work concept” called URBIN, opening in Miami Beach and Coconut Grove, which stands for “inclusion in the urban core,” said Location Ventures CEO Rishi Kapoor, who is developing the fully furnished live-and-work rentals that range from about 275-square-foot micro units in Miami Beach, 331-square-foot micro units in Coconut Grove, and up to 3- and 4-bedroom apartments of 2,352 square feet in both sites.

“The goal was to create a place for accessible price points for people to live, work and seek wellness in core urban neighborhoods and in-demand submarkets like Coconut Grove and Miami Beach by purposing a lower top line price,” said Mr. Kapoor.

In November, Miami Today reported that the project was in the pre-development phase and there was a plan to begin the renovation of the existing 33,488-square-foot property on the Miami Beach site, 1260 Washington Ave., in 2022 to deliver the project by 2025. The project is now awaiting permits to begin construction. Renovation of the building, along with group-up development, will create 44,000 square feet of space.

The Coconut Grove location, about 33,000 square feet at 3162 Commodore Plaza, is divided into three sections: The Work Site, which awaits permitting (Location Ventures expects to receive them in a couple of months); Live Site 1, a 6-story condominium, which is expected to receive permits for the renovation of the acquired property “any day now”; and Live Site 2, a 5-story building that is expected to receive its construction permit this year, according to Mr. Kapoor.

“These neighborhoods are two of the most affluent in Miami,” he said. “They often price out people that are service professionals, teachers, municipal workers, entrepreneurs that are looking for low top line price. We’re trying to bring into the market micro units or co-living bedrooms that help them keep more of their income in their pocket and less towards rent.”

Tenants would be able to buy these properties for investment or partial use for themselves through the leaseback program the building is offering, Mr. Kapoor explained. Owners would be able to use their units up to 90 nights yearly and have the opportunity to put the unit into a management pool run by Location Ventures.

“We handle the subleasing for people looking for long-term rentals or extended sale of units that are furnished,” he said. “It’s a hassle-free management program where a buyer of the unit can have some use enjoyment [in their unit] but then also have the opportunity to make income with us managing it for them without any hassle when they’re not there.”

The price of these condos and micro-sized units ranges from $400,000 to $2.4 million.

“If you look at these neighborhoods in Washington Avenue and Coconut Grove,” Mr. Kapoor said, “they’re just going through a renaissance. There is a lot of demand [for affordable housing] in the area, and that’s why we’re doing these products there.”

3 Responses to Micro housing becoming big answer to affordable living

  1. Manuel zumba

    February 12, 2022 at 9:35 am

    I would like to get more information about the micro living. I’m Looking for a 400-500sg ft apt to buy. Thanks

  2. Danielle Lehtinen

    February 12, 2022 at 8:53 pm

    These projects sound wonderful. As a retired teacher whose „second act” is abstract painting and world travel, I have been dreaming about creation of affordable living arrangements like these.
    Please keep me posted, especially on units that have balconies or terraces, and common areas including a garden and a swimming pool.
    Especially interested in South Beach, and pricing not above 400,000.
    Keep photos and maps coming!
    Thank you.

  3. Bretnisha Lynch

    February 18, 2022 at 12:44 am

    Dear Editor, my name is Bretnisha I am a student at Florida Atlantic University’s School of Social Work. I am writing today because I want to discuss why the micro-housing and live flex work concept is amazing and should be expanded.

    Micro housing is a great idea for people who are looking for affordable housing, especially with times like now. Rent increase in Florida alone has become worse than ever. The rent increase will affect many people living in Miami, causing them to relocate which may cause more problems such as finding new employment. Micro housing while it is a great idea, it only befits some. Not everyone can afford to live in a studio apartment, some have families that consist of more than one child, and some may not be able to afford the cost of the micro-housing. I feel that the flex live-work concept is great for families who may need employment and also a place to live and support their families. This should be expanded in different counties around Florida and not just Miami, but wow what a start.

    Thank you

    Bretnisha Lynch

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