search

The Real Deal Logo

Trending

H-E-B snags 21 acres in Celina, hinting at development boomH-E-B snags 21 acres in Celina, hinting at development boomHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudLawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aRent board’s 4% hike will “plunge” buildings into distress: landlordsRent board’s 4% hike will “plunge” buildings into distress: landlords
Commercial
South Florida

Pembroke Pines affordable senior housing nabs $91M construction loan

Developers score $77M in tax-exempt bond financing, $14M gap funding from Broward County

From left: McDowell Housing Partners' W. Patrick McDowell and Kenneth Lee; Miami Jewish Health's Jeffrey Freimark; Douglas Gardens Health and Senior Living in Pembroke Pines (Getty, McDowell Housing Partners, Miami Jewish Health, /REP|R|TWÄR/)
From left: McDowell Housing Partners' W. Patrick McDowell and Kenneth Lee; Miami Jewish Health's Jeffrey Freimark; Douglas Gardens Health and Senior Living in Pembroke Pines (Getty, McDowell Housing Partners, Miami Jewish Health, /REP|R|TWÄR/)
By
Feb 21, 2023, 3:53 PM

Developers scored $91 million in construction financing for an affordable housing project for renters 62 and older in Pembroke Pines.

McDowell Housing Partners and Miami Jewish Health Systems are building the 410-unit Douglas Gardens Health and Senior Living at 705 Southwest 88th Avenue, according to a news release. It will include a 15,500-square-foot Program of All-Inclusive Care for the Elderly (PACE) center, which offers Medicare and Medicaid-covered health care services.

The developers obtained a $77 million loan from tax-exempt bonds and $14 million in gap funding from Broward County, records show. The Housing Finance Authority of Broward County issued the tax-exempt bonds, which Citi Community Capital purchased and then lent to the developers, said McDowell’s COO Chris Shear. The financing tops off the capital stack, which includes low-income housing tax credits from the Florida Housing Finance Corporation.

McDowell and Miami Jewish Health are developing a pair of six-story buildings, with 390 units for renters who earn no more than 60 percent of the area median income, Shear said. Of the remaining 20 units, half will be for renters who earn no more than 100 percent of the AMI, and half will be market-rate priced apartments. Broward’s AMI is $82,100 annually, according to Florida Housing.

Construction is expected to be completed in 2025.

Sign Up for the undefined Newsletter

The project is an addition to Miami Jewish Health’s existing Douglas Gardens North Campus, consisting of 332 affordable units for seniors. It was developed in 2006 on 25 acres leased from the state.

In October, Pembroke Pines commissioners approved the new buildings on a 14-acre portion of the site.

Read more

The development comes as South Florida’s housing crisis has left many renters priced out of the multifamily market. The influx of residents since late 2020 fueled apartment demand, leading landlords to increase rents to record levels.

In March of last year, the tri-county region recorded the biggest rent hike nationwide of 58 percent in the two-year period since March 2020. Rate increases have since slowed to more traditional levels, with rents climbing 4.7 percent in December year-over-year, according to Realtor.com.