Pinnacle Raises $50M to Build Workforce Housing Development
By Julia Echikson June 13, 2024 2:21 pm
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Pinnacle secured a $50 million finance package to add workforce housing units to the 22-acre Old Cutler Village Apartments complex near Cutler Bay, Fla.
The addition, called Old Cutler Village Phase 2, is a five-story building with 120 workforce units at 10455 Old Cutler Road, just east of the Ronald Reagan Turnpike, in an unincorporated part of Miami-Dade County.
The construction financing includes a $32.2 million tax credit equity from Bank of America (BAC); a $9.1 million conventional first mortgage loan from Berkadia and Freddie Mac; and a subordinate $6 million Surtax loan from Miami-Dade County, according to Pinnacle
Construction is expected to be completed in October 2025. The units will be designated for residents who earn no more than 70 percent of the area median income (AMI), per the Miami-based developer.
The development marks the first expansion for Old Cutler Village Apartments since its completion in 2003. The property now features 288 affordable housing apartments.
“Old Cutler Village Phase 2 comes at a critical time when the need for quality affordable housing in South Florida has reached an all-time high, with our workforce being priced out of the very communities they serve,” David O. Deutch, a partner at Pinnacle, said in a statement.
Based in Dadeland, Pinnacle’s portfolio spans 9,000 units. Last year, Pinnacle raised $89 million to build a 215-unit affordable housing, garden-style development in the Princeton neighborhood.
Julia Echikson can be reached at jechikson@commercialobserver.com.
