Hollywood approves land sale for affordable senior rentals

Pinnacle Housing Group will buy the land for $2.1M and borrow $578,000 from the city

Dec.December 15, 2016 08:45 AM

Rendering of Pinnacle’s planned project and Mitchell Friedman, partner at Pinnacle

Hollywood city commissioners on Wednesday unanimously agreed to sell city land for $2.1 million to Pinnacle Housing Group for the development of 120 below-market rental apartments for low-income senior citizens.

Miami-based Pinnacle would charge $755 a month for one-bedroom, one-bathroom units and $908 for two-bedroom, two-bathroom units at a three-story, garden-style apartment complex.

Annual income below $30,480 is an eligibility requirement for one-person households. The threshold rises to $43,500 for four-person households.

The city agreed to sell an assemblage of city-owned parcels where Adams Street meets Dixie Highway for $2.1 million and to extend a $578,000 loan to Pinnacle to help finance the senior housing development.

The land is deed-restricted for affordable housing.

It is on the south side of Adams Street, just west of Dixie Highway, Timothy Wheat, regional vice president of Pinnacle, told The Real Deal

He said the planned 120-unit Hollywood development for independent, not assisted, living still faces a major financing hurdle.

City approval is “the first step. We’ll have to apply to Florida Housing Finance Corp. for the vast majority of the tax credits that will serve as equity financing,” Wheat said.

Pinnacle has tried before and failed to win an allocation of tax credits for the same city property, which Hollywood’s municipal government has owned since the 2004-2005 period. “We’ve been through it with this site a number of times,” he said.

Hollywood City Commissioner Linda Sherwood said Pinnacle’s chances are better now because of the pending $578,000 loan to the company, which is contingent upon a successful application to Florida Housing Finance Corp. for tax credits.

“It will make it easier to qualify for the tax credits,” Sherwood said.

City Commissioner Peter Hernandez noted that Pinnacle was not proposing a site plan, and at his request, Wheat publicly promised to keep the height of the senior housing development at three stories, below the five-story limit, and the number of parking spaces at 157, more than the 120 required.

Related Articles

Jeffrey Soffer and the Diplomat Beach Resort (Credit: Getty Images)

Jeffrey Soffer in talks to buy 1,000-room Diplomat Beach Resort for under $1B: report

Left to right: Debbie Orshefsky, Seth Bour, Vivian Dimond, Peter Flint, Tim Wheat and Chip Abele

Hollywood attracts developers but lacks new office space: panel

Moses Bensusan and Costa Hollywood Resort (Credit: Wikipedia)

Embattled Costa Hollywood Resort files for bankruptcy

Daily Digest Miami

Landmark bank in downtown Hollywood could be torn down for rentals, Miami-Dade approves $300M cruise terminal: Daily digest

Diplomat Beach Resort at at 3555 South Ocean Drive

Brookfield’s Hollywood Diplomat scores $168M refi

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Publix plans to build and open a grocery store in Hollywood (Credit: Getty Images, Pixabay)

Boaters, rejoice: Waterfront Publix with boat access moves forward

Jorge Pérez with renderings of the projects

Related Group, Atlantic Pacific seek approvals for mixed-use apartment projects