Shoma Group proposed a 31-story tower near Baptist Hospital. Bazbaz Development plans a 48-story building in Wynwood. These are just the latest development applications filed under the Live Local Act.
The new state law, which incentivizes developers that incorporate workforce housing into their projects, was recently enhanced by the passage of Senate Bill 328.
In exchange for setting aside at least 40 percent of the residential units in a project to households earning up to 120 percent of the area median income, developers can build up to 150 percent of the maximum floor area ratio in that municipality, and they can build up to the highest currently allowed height within a mile of the proposed development — among other incentives, including density bonuses, parking reductions or eliminations and property tax savings.
Land use attorney Anthony De Yurre, a partner at the law firm Bilzin Sumberg, broke down how the latest bill came together. SB 328 clarifies and expands on Live Local, giving developers more of a $$$ reason to build projects that qualify.
De Yurre, who represents developers, lenders and investors, provided specific language to lobbyists in Tallahassee or connected lawmakers with local government officials. Some of that language was adopted “word for word,” De Yurre told me, referring specifically to the ad valorem tax exemption he engaged with the local property appraiser on.
In the weeks since Gov. Ron DeSantis signed SB 328 into law, Shoma, Bazbaz and other developers have proposed taller and denser projects than would have been previously allowed.
Shoma submitted an application to Miami-Dade County for a 31-story, 404-unit apartment tower at 9525 North Kendall Drive (Old Tom’s Sports Bar site, for those who know). At least 162 apartments would be income-restricted. And Bazbaz’s proposed tower in Wynwood would be the tallest in the trendy Miami neighborhood.
The way the Live Local Act is written sans SB 328, many projects wouldn’t pencil out on paper, when multifamily developers are already having a tough time.
“On a lot of this stuff, I just have a pool of clients that I know cannot get their return on costs and get underwritten on these deals,” de Yurre said. “And these deals are not going to work the way it was drafted.”
Live Local 2.0 could be the juice needed to propel a new wave of housing projects. My question is still whether it will be enough to really help the housing crisis, since it does not incentivize housing for people with lower incomes.
What we’re thinking about: A waterfront Coral Gables mansion sold for $16.5 million, a loss compared to the $19.8 million previous sale price in 2021. Is this a sign of more to come? (I think so.) Send me a note at kk@therealdeal.com.
CLOSING TIME
Residential: The billionaire Hearst family sold the 8,900-square-foot, seven-bedroom house at 250 Palmo Way in Palm Beach to hedge funder Robert Crespi for $25 million.
Commercial: Erickson Senior Living paid $53.5 million for the 92.5-acre development site at 8344 Boynton Beach Boulevard in the Agricultural Reserve. The William Mazzoni Revocable Trust, led by Patricia Mazzoni and Thomas Smith as co-trustees, sold the land.
NEW TO THE MARKET
A 40-acre waterfront property in the Florida Keys listed for $57.5 million. The nine-lot assemblage at 100 Sandy Cove Avenue in Islamorada is on the market with Anna Richards of Coastal Realty of the Florida Keys brokerage.
A thing we’ve learned
This hurricane season, officially underway as of yesterday, could be one of the most active on record with more than 20 named storms predicted. Take this as your reminder to stock up on supplies, including food, water and medications, and check your insurance coverage.
Elsewhere in Florida
- The Miami-Dade County Commission on Ethics and Public Trust found probable cause that former Surfside Mayor Shlomo Danzinger exploited his position when he made a presentation during a town commission meeting that amounted to campaigning, the Miami Herald reports.
- Tampa eighth grader Bruhat Soma won the Scripps National Spelling Bee, the second winner from the Tampa Bay area in two years. Soma correctly spelled 29 words in 90 seconds in the final tiebreaker of the competition, according to the Tampa Bay Times.
Finlay Matheson is trying to sell his undeveloped private island in Biscayne Bay, alarming environmentalists who have sought to preserve the island and two smaller adjacent islands, called Bird Key. The property has been a haven for birds such as herons, pelicans and frigatebirds, according to the Miami Herald. Compass agent Audrey Ross has the $31.5 million listing.