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HomeMy WebLinkAboutCRA-R-25-0077 Backup_ProposalOMNI CRA PROPOSAL Project Overview: 1348 NW ist Avenue, Miami, FL 33136 Redevelopment - Tracksland Holdings LLC The subject property is an existing i8-unit residential building in the Overtown neighborhood, on a currently gritty block adjacent to the construction of the new I395 highway overpass and neighboring the future transformative Underdeck public space redevelopment. The property consists of six 2-bedroom units and twelve i-bedroom units. We acquired the property two years ago at which time it was filled with non-paying squatters. We vacated the building and filed plans with the department of buildings to renovate the building and all the units, add new windows, HVAC and bring everything to code. Our vision is to transform this neglected property into a beautiful and affordable residential complex with superior finishes to exceed current neighborhood standards. We are aiming to create safe, clean and comfortable workforce housing and to allocate 33% of the units for affordable housing for local Miami residents. The building's close proximity to Downtown and it being directly adjacent to the future Underdeck project will afford the occupants convenient, enjoyable and safe housing close to many job opportunities. We expect rents in the immediate area to increase substantially over the next few years as the Underdeck project is completed and as the many new developments in the surrounding area are completed. Our designation of 33% of our units to affordable housing will ensure affordability in this dynamically changing neighborhood for local lower -income residents who would otherwise be forced to relocate as the neighborhood continue to change. Progress Overview: • Initial Work: A construction budget of $i 1 million was established, and we commenced work after filing permits for electrical, general construction, HVAC, and window installation. • First Challenge Encountered: We commenced construction and completed all the windows, roughing, plaster and some of the plumbing work. Despite paying for super expensive 24 hour security monitoring, there were electrical issues at the street and the property lost power for over 2 months during which time our security system was down and the building was vandalized resulting in major project setbacks and damage over more than $275,000. The power was restored and we began to repair all the damages and complete the project which we estimated would take 9 more months and cost approximately $85o,000. • Second Challenge Encountered: Shortly after repairs began at the site, we were the victim of arson at the property. Unfortunately there was significant damage and all work needed to be stopped. We are in the process of re -filing plans with the city and the cost to bring the project to completion has now risen to $1,49o,000. Current Status: • We are interested in offering 33% of the units (three i bedrooms and three 2 bedrooms) for affordable housing at 8o% AMI and working closely with the Omni CRA to move the project forward efficiently. Neighborhood Context and Challenges Investments in properties like 1348 NW ist Avenue are crucial for the neighborhood's revitalization. By rehabilitating dilapidated buildings and introducing high -quality, affordable housing, we aim to improve living conditions and contribute to reducing crime rates and homeless encampments which are rampant particularly on the block and adjacent to our property. Our project aligns with broader community efforts to address these challenges and promote economic development. Need for Security During Development Phase We have faced significant challenges during construction in securing the site and preventing squatters, vandalism and drug users from entering our property. The block we are on is notorious for homeless encampments. The property directly next door to us and another site around the corner from us are also under development and have received OMNI CRA grants. We believe it would be a tremendous boost and resource if the OMNI CRA would offer to assist with the providing of 24 hour security to this group of sites which would expedite the completion of the projects and prevent unnecessary delays or challenges. Proximity to "The Underdeck" Development The property is directly adjacent to "The Underdeck," a 33 acre transformative project set to revitalize the area beneath the I-395 bridge. We believe strongly that once the Underdeck is completed the value and desirability of our property will increase tremendously and rents in the immediate area will increase significantly. We want local working class Miami residents to benefit from these community improvements and through the allocation of 6 affordable units at 80 % AMI we will maintain affordability for those who would otherwise be forced to move into less desirable and less convenient areas. Strategic Location and Future Rent Inflation Located just blocks away from significant developments and downtown Miami, the property is ideally positioned to attract those who wish to live in a safe environment close to the city center. We anticipate that within 3-5 years, coinciding with the completion of "The Underdeck" and other infrastructural enhancements and new developments, the area will experience a surge in market rents, aligning with the much higher downtown rates. Our allotment of 6 affordable housing units at 80% AMI will become more significant especially as rents in the area continue to surge. Commitment to Affordable Housing Our company is dedicated to providing affordable housing solutions. By investing in this project and designating 33% of the units to rents at 80% AMI, we aim to offer high -quality, reasonably priced and centrally located residences, contributing to the community's overall upliftment and providing desirable living options for the local workforce. Comparable Rents for 1348 NW ist Ave, Miami, FL The subject property is right on the border of Overtown and the burgeoning downtown Miami area. Average rents in Overtown are approximately $2,35o per month. Average rents in the Downtown Miami area are more than $3,50o per month. Capping the rent for the 6 affordable units in our project at 80% AMI will become more and more valuable over time as rents in the area continue to converge with the rent amounts of downtown Miami. This will be a huge concession, affording low income residents in the area the opportunity to live in an area that would otherwise become increasingly unaffordable. Conclusion Through this redevelopment and our allotment of 33% of it to affordable housing, we are not only enhancing a single property on a gritty block but also contributing to the broader revitalization of the neighborhood while also maintaining affordability. Our efforts, in conjunction with projects like "The Underdeck," will contribute to transform the area into a vibrant, desirable community, reducing crime, fostering economic growth and improved quality of life for residents from all income brackets. Development Team Summary: Frances Hercules Frances is an experienced real estate professional with an array of expertise in development, management, financing and operations of multi family rental properties. Frances currently oversees the management of a diverse portfolio of more than 3o buildings, including rent stabilized, affordable housing and free market properties, ensuring optimal performance and tenant satisfaction. She has been a driving force in the ground up development and repositioning of more than a dozen properties. Throughout her career, Frances has also helped facilitate the successful closing of more than $ioo million in bridge and DSCR loan financings. Proud of her family roots in Trinidad, Frances has always been deeply connected to the importance of community and equitable housing. Jordan Wolf Jordan Wolf is the Chief Operating Officer at Yellow Jacket Ventures and is responsible for all firm wide operations. Jordan brings over 20 years of real estate equity and debt leadership experience spanning commercial, residential, and mixed -use portfolios. Known for driving operational efficiencies and maximizing asset performance, he has overseen everything from ground -up developments to strategic repositioning.Jordan has a proven track record of balancing technical acumen with strategic foresight. AJ Kurland, CPA. AJ Kurland is the founding partner and CEO of Yellow Jacket Ventures, leveraging 20+ years of experience in real estate and finance. He oversees the company's management, deal flow, and business development, with equity and debt transactions totaling over $50o million AJ specializes in turning around distressed assets through outstanding execution and attention to every detail. He has developed multiple low income and affordable housing projects and every building under his management is managed meticulously. Previously, AJ served as CFO and CCO of KG Investments Fund and held leadership roles at Blackstone and Palladium Capital Advisors. He began his career at EY. AJ recently relocated from New York to Miami and holds a real estate brokers license and an active CPA license.