After placing a big bet on condo development that nearly sunk the company in the real estate crisis, Miami-based Related Group has decided to hedge against risk by returning to its lucrative roots – affordable housing and rental apartment properties, Daily Business Review reported.
“When we saw what happened in the last cycle, we decided to go back to our roots and reinvigorate the affordable housing division and increase the multifamily rental division, which is a much safer type of development,” Related principal Jorge Pérez told the Review. “We also created an acquisition division, which buys distressed assets all over the country.”
Related has 50 projects in the pipeline, including a retail project in Doral, the Venezuelan enclave in Miami-Dade County, and a waterfront entertainment complex on Watson Island, Matt Allen, Related’s chief operating officer, told the Review.
“You look at where we are situated today and, if the economy ever slows down, we are positioned very well” to overcome another recession, Allen said. [Daily Business Review] –Emily Schmall