When you think “affordable housing,” what image comes to mind?
What if I told you there’s a developer out there who’s doing affordable housing projects that not only dispel the common perceptions but also substantially improve the community?
Well, that developer came on the show recently to talk about how affordable housing fits into the South Florida mix.
Michael D. Wohl, Partner, Pinnacle Housing Group, is a second-generation real estate developer. He came to South Florida as an attorney and got into distressed real estate in the 1990s – buying and turning around apartments and multibay warehouses.
As the distressed property market was settling down, a friend called to ask for Wohl’s help in evaluating the highest and best use for a piece of property. He ran the numbers and recommended a for-sale affordable development.
The friend said, “Okay, here’s your partner. Go do it!” So they built 35 units in Little Havana and sold out in 12 months.
The rest, as they say, is history. Pinnacle Housing Group was established in 1997 and has been building affordable and mixed-income housing ever since.
The company is currently involved in three mixed-income developments in Coconut Grove, Brickell, and downtown Fort Lauderdale.
Of course, the usual pushback on these projects is that those folks will never live together, but Wohl remains optimistic.
“You know what, it’s an interesting experiment and really our Brickell project – Brickell View Terrace – will be the benchmark. We’ll see if everybody’s going to live together,” he said.
“In New York, where it’s the norm, the mayor there has had issues with the fact that there’s separate entrances and different amenity packages and different finishes in the apartments.
“In our deals, all of the finishes, amenity packages, and entrances and common areas are shared.”
Now, I can spot a Pinnacle Housing Group project from afar, and that’s because the company takes great pains to incorporate appealing design and artwork into its projects.
Wohl said that helps to hedge the public perception of affordable housing.
“One of the great things about the affordable housing business is, as we say, ‘It’s doing well by doing good.’ You can’t do anything better than that,” he said.
Demand is high, Wohl said, and there’s easily a need for another 20,000 units of affordable housing. But it’s a very challenging environment, with tax credits being reduced and land prices and construction costs rising.
That said, Pinnacle can still profitably do projects of 100 to 110 units.
“Building affordable housing and serving urban working families is a passion,” Wohl said.
This was a great interview, and we covered a lot more topics, including:
– The difference between market-rate, workforce and affordable housing.
– Why horizontal affordable development is not really a good option.
– How affordable housing serves as a catalyst for redevelopment areas.
– How mixed-income housing will become a major trend in South Florida.
Click here to listen to the full interview with Michael D. Wohl, Partner, Pinnacle Housing Group.
You can contact Wohl online at www.pinnaclehousing.com or by calling 305-854-7100.
