Pinnacle Nabs $89M for Affordable Development in Miami-Dade
Pinnacle scored $88.6 million in financing to build an affordable housing, garden-style development at the southern end of Miami-Dade County, the Miami-based developer announced.
The six-building project, called Pinnacle at Tropical Pointe, will feature 215 units, a swimming pool, fitness center, and co-working space. All apartments will be priced for those earning up to 60 percent of the area’s median income.
Pinnacle purchased the 6.5-acre site at 25155 SW 136th Avenue in the Princeton neighborhood, located in an unincorporated part of Miami-Dade County, for $6.9 million in 2021.
Pinnacle at Tropical Pointe, which broke ground earlier this month, is expected to be completed in 2024.
Bank of America (BAC) provided a $37 million construction loan and $30.6 million in tax credit equity. Citibank provided a permanent loan of $20 million. Miami-Dade County funneled an additional $1 million from its Development Inflation Adjustment Fund, which was created to help mitigate rising construction costs.
The financing totals $88.6 million, though Pinnacle says it’s now down to $72.3 million since there’s been a paydown of the construction loan, which lowered the amount of the permanent loan.
“By tapping into a variety of funding sources and working closely with local governments and financial institutions, together we can bring affordable housing to hundreds of cost-burdened members of our community despite the soaring costs of construction,” David O. Deutch, partner at Pinnacle, said in a statement.
Construction for Pinnacle’s development comes just weeks after the Florida legislature passed a sweeping affordable housing bill with over $700 million in funding for programs following three years of skyrocketing rents in the Sunshine State’s urban centers.
Julia Echikson can be reached at firstname.lastname@example.org.