Integral Group is close to securing a 99-year ground lease to build a $159 million multifamily project in Coconut Grove.
The Miami-Dade County Commission is set to vote Tuesday on an agreement with an Integral Group affiliate to redevelop a 24-unit Section 8 housing community at 3666 Day Avenue in Miami.
Integral, led by Chairman Egbert L.J. Perry, would demolish the 12 two-story buildings on the 3.2-acre site to make way for a mixed-income development with 450 units that would be built in two phases, according to a county memo.
Existing tenants would be able to move into new Section 8 apartments set aside in the planned project’s first phase, which will consist of 300 units. Integral would also reserve 109 units for residents who earn between 30 percent and 140 percent of the area median income, or AMI, in Miami-Dade, which is currently $86,800 per year.
For the 150-unit second phase, Integral would set aside 88 apartments for residents earning between 30 percent and 80 percent of Miami-Dade’s AMI, the county memo states. In addition, the entire development’s amenities would include a community room, 5,000 square feet for resident programming, a computer lounge, a fitness center, an outdoor entertainment area with gas grills, and a pet park.
The lease requires Integral to pay the county an upfront payment of $2.2 million, an annual asset management fee of $20,000 after the first full year the project is stabilized, a one-time fee of $180,000 and a 25 percent share of the net cash flow, which is estimated at $424.4 million over the life of the 99-year agreement, county officials stated.
The deal will also require approval from the U.S. Department of Housing and Urban Development.
Last year, Integral won a request for proposals for the Section 8 housing site. The county also awarded a separate Coconut Grove public housing site, Gibson Plaza at 3160 and 3170 Mundy Street in Miami, to Related Urban, the affordable housing division of Coconut Grove-based Related Group.
Miami-Dade County commissioners recently approved a 99-year lease with Related Urban to redevelop the 62-unit building for low-income residents 62 years and older into Gallery in the Grove, a 20-story tower with a mix of 345 market-rate, affordable housing and workforce housing units, as well as 303 parking spaces.