Redwood Dev Co scored a $24 million construction loan for an Opa-locka multifamily complex.
The deal marks the developer’s continued bet on the city and on apartment demand from South Florida’s middle class.
The five-story, 98-unit Mosaic Apartments, under construction at 13800 Northwest 22nd Avenue, isn’t formally workforce or affordable housing, as it doesn’t have a deed restriction mandating below-market rents, according to Redwood. But it will accept rent subsidies from housing authorities, and the rest of the units will cater to teachers, post office workers, nurses, firefighters and the like.
Mosaic will offer three-bedroom and four-bedroom apartments, with 10 of the units live-work units, allowing residents to run businesses from their homes, according to a Redwood news release. Valley Bank provided the construction financing, which includes a bridge loan allowing for project stabilization.
Redwood paid $1.8 million for the 2-acre development site in 2021, according to records. The project is expected to be completed in the fourth quarter of next year, the release says.
A mile from Mosaic, Redwood developed The Mirage at Sailboat Cove apartment complex in 2021. The project, at 14301 Northwest 17 Path, consists of 171 units, with 59 constructed in past years by other developers, and the rest completed by Redwood. Mirage includes market-rate units and also accepts rent vouchers.
Redwood is an affiliate of Miami-based real estate private equity firm BAS Holdings Investments. BAS’ real estate investments span solar financing and developments, mining, garages and land, according to the release. David Burstyn is principal at Redwood, and Brian Sidman is BAS’ founder.
In the next five to seven years, Redwood wants to build more than 5,000 workforce and affordable units in South Florida. The firm has been analyzing the State Apartment Incentive Loan program, which provides low interest rate financing for below-market rate housing.
SAIL and other state programs got a boost to their financing armor when Gov. Ron DeSantis signed the Live Local Act that will pump $711 million in funding for affordable and workforce housing. While the law is good news for developers, many say it would also take incentives from local governments to help deals pencil out.
South Florida has long struggled with meeting affordable housing needs, but the influx of residents over the past two years supercharged the issue. Although the ensuing record rent growth has calmed in recent months to more traditional levels, RentCafe still ranked Miami-Dade as the “most competitive” apartment market nationwide last year. An average of 32 renters vied for the same unit, far above the national average of 14 renters competing for one unit.