New Public Private Partnership for Housing in Miami

MIAMI, March 9, 2021 (Newswire.com) - Servitas, a leading multifamily housing developer located in Texas with offices in Miami, Florida, is pleased to announce the awarding of the City of Miami Beach's public private partnership (P3), the Collins Park workforce housing development for artists and educators. The $29 million housing development located at 224 23rd Street, at the southeast corner of 23rd and Liberty, will include 80 workforce housing units, a 32-bed dormitory for ballet dancers, and approximately 5,000 square feet of ground floor retail space. "As the first Class A workforce housing project in the City of Miami Beach, this development will provide great cultural benefits for many years to come and will increase our footprint as an arts and cultural destination," said Miami Beach Mayor Dan Gelber.

The housing component will offer residents a full suite of amenities at an affordable price point for households of 80% to 120% of Area Median Income. The property will contain studio, 1-, and 2-bedroom units and will offer its residents a rooftop fitness center and lounge, access to the adjacent Collins Park parking garage, and of course, very close proximity to the beach. In line with the City's multi-modal emphasis that prioritizes pedestrians, free transit passes will be provided to new residents and complimentary bike parking available on site. By providing affordable housing specifically to artists and educators, the project ensures a continual source of talent for Miami Beach and ongoing support for education and the arts, which are vital to the rich fabric of the city.

The city stands to benefit economically with an innovative P3 structure that not only allows the housing to be constructed at no cost to the city, but rental revenues will provide the city with approximately $300,000 in year one, with annual increases. A non-profit partner will retain ownership of the structure until the bonds are paid off, at which time, ownership of the building reverts to the city.

Christy Grimste, lead project developer at Servitas, said, "It has been an honor to work with the City on this groundbreaking development. We have not seen this unique P3 bond financing structure for housing in other cities, so we're excited to be part of this solution for Miami Beach. The housing will directly benefit the Miami Beach workforce, who are often priced out of the market and unable to afford housing near their workplace, and it will also provide much-needed revenue for the city itself."

In fact, the city intends to devote the excess rental revenues to program the ground floor space with non-profit, cultural art uses that activate the streetscape. Featuring interior artwork from local artists, the project will enhance the Collins Park neighborhood, the location of Miami Beach's cultural arts campus. The second floor of the building will serve as dormitory housing for the Miami City Ballet (MCB), headquartered immediately next door to the project. With a dormitory next to its rehearsal space, MCB can provide on-campus housing for its ballet dancers of all ages, who come from throughout the globe to dance at the renowned ballet company, itself celebrated as a source of cultural tourism to Miami Beach.

Minority hiring is a priority for the developer, Servitas, a 100% Hispanic-owned business, and it will remain a priority throughout the project's lifespan. The project will create at least fifty (50) jobs during construction and three (3) jobs once the building is open, all with minimum wages averaging at least $16/hour.

PGAL is architect of record, with Shulman + Associates as local architect, and Plaza Construction as general contractor. Construction on the Collins Park Artist/Educator Housing project is anticipated to begin in fall 2021, with move-in planned for summer 2023.

For more information, please contact:

Servitas

www.servitas.com

972.759.1600 | E: info@servitas.com

5525 N. MacArthur Blvd | Suite 760 Irving, TX 75038

Source: Servitas