WynTown Portfolio 419U Multifamily

The Porosoff Group of Compass Commercial is proud to present The WynTown Portfolio. The offering consists of 12 apartment buildings throughout the Wynwood and Overtown markets. In total there are 419 residential units and an additional 10 ground floor retail bays on the two 3rd Avenue buildings. The 12 buildings were built between 1953 and 1960 and have since gone through significant renovations in the early 2000’s.

Currently, the properties operate under a 100% Low-Income Housing Agreement (Land Use Restriction Agreement – LURA) with the Florida Housing Corporation. This agreement runs until 2055. The owner of the property is required to have the property occupied fulfilling specific occupancy ratios according to AMI (Area Median Income); 40% by individuals whose income is 60% or less than the AMI. Additionally, 15% of the units would need to be occupied by individuals who do not exceed 35% of the AMI. Furthermore, 20% of the units would need to be occupied by individuals whose incomes are 50% or less than the area median income. Equally Important, the gross monthly rents for all units shall not exceed 30% of the imputed income limitations applicable to such units. Lastly, the buildings located at 268 NW 11^th St & 275 NW 10^th Street are under long term land leases which expire in September 2055 which call for a total of $16,000 in rent annually. A strategy for a savvy investor would be to transfer the LURA to another affordable multifamily development as well as buying out the land lease to fully take advantage of higher development rights on the Overtown assemblage and increasing rents to market for the remainder of the portfolio in the Wynwood Market.

The Wynwood area has changed immensely due to the influence of art, entertainment, and fine dining which has led the community to grow over 400 businesses, 200+ murals, and 30+ eateries all within 50 city blocks area. There are currently 6 multifamily developments in the Wynwood area all with 100-300 units.

Overtown, traditionally a neglected neighborhood with no new investment, has been seeing an influx of new capital and development, both private sector and public sector over the past ten years. Dilapidated low-income housing has been undergoing total gut renovations and new low income/affordable housing high-rise projects are popping up on the edge of Downtown Miami and Overtown. Soleste Grand Central and the Lyric House are two examples of brand-new affordable developments in the heart of Overtown. Soleste is 350 units of mixed-income housing and Lyric House is 158 affordable housing units.

A proposed project nearby, Rainbow Village, is a development site which is a 10.4-acre site with 136 apartments built in 1970 which will be redeveloped under a long-term lease between the City of Miami and Housing Trust Group. The project plans to build 299 new units despite current zoning allowing 670. These new apartments would be a mix of affordable and workforce housing with some retail, fitness, and community centers.