HTG Secures $288M for Affordable Housing Development in Miami

Housing Trust Group (HTG) broke ground on an affordable housing development in Miami’s Overtown neighborhood after securing more than $109 million in construction financing, the developer announced. 

The 698,000-square-foot development, called Rainbow Village, will feature 310 apartments, 12,000 square feet of retail space and 442 parking spots at 2000 NW Third Avenue, adjacent to Northwest 20th Street, near Overtown’s border with Wynwood. 

The construction debt includes two loans from KeyBank Real Estate Capital and J.P. Morgan Chase, which amount to $52 million and $57.2 million, respectively. Construction for the first phase, which is expected to cost $185 million, is slated to be completed in the first quarter of 2027.

Units will be priced within the budgets of people earning between 30 and 80 percent of area’s median income, ranging between $793 to $2,634 a month. 

“As Miami continues to face a growing demand for affordable housing, Rainbow Village will offer much-needed relief to working families throughout the community,” Matthew Rieger, president and CEO of Miami-based HTG, said in a statement. 

The 10.4-acre site, owned by Miami-Dade County, is currently home to two-story buildings that were built in 1972 and together house 136 units. In 2022, the county approved HTG’s ground lease to redevelop the parcel into 1,300 affordable and workforce apartments, according to the South Florida Business Journal. 

Total funding for the development is $288 million. In addition to the $109.2 million from KeyBank and J.P. Morgan, funding includes $60.4 million in permanent financing from KeyBank, as well as a $15 million State Apartment Incentive Loan, another $15 million loan from the Southeast Overtown/Park West Community Redevelopment Agency, a $3.1 million PHCD seller note, a $3 million PHCD HOME loan, $11.8 million in Bond Reinvestment Earnings, and $70 million in 4 percent Low-Income Housing Tax Credits equity syndicated by Raymond James Equity Investor.

Overtown, a historically Black neighborhood that was devastated when the construction of Interstate 95 carved a path through the center of the community, is getting attention from developers thanks to its central location. Last year, Swerdlow Group completed the Block 55 at Sawyer’s Walk, a mixed-use development that features 578 senior housing apartments, Target and Aldi stores, and an office component occupied by MSC Cruises.

Julia Echikson can be reached at jechikson@commercialobserver.com.