Representing Miami’s first 100% income- and rent-restricted residential skyrise, the property will provide 252 new affordable housing units to the city
Walker & Dunlop, Inc. announced today that it structured $61,046,600 in financing for UNI Tower, Miami, Florida’s first 100% income- and rent-restricted residential skyrise. Located in the heart of Miami’s urban core, the property will deliver 252 much-needed affordable and workforce housing units to one of the country’s most costly housing markets.
Once complete, UNI Tower will feature 10,000 square feet of office space and 4,500 SF of ground-floor retail, all exceptionally located within Miami’s Arts & Entertainment District, which connects the Wynwood Arts District and Design District to Downtown Miami.
The property is within the bounds of a designated Economic Opportunity Zone census tract. Opportunity zones were established by Congress in the Tax Cuts and Jobs Act of 2017 and encourage long-term investments in designated low-income areas by offering incentives in the form of lower or deferred capital gains taxes.
“We were extremely pleased with the success of this transaction that provided much-needed rent-restricted workforce housing to downtown Miami”, said Keith Melton, Senior Managing Director on Walker & Dunlop’s FHA financing team. “HUD has continued to prioritize projects located within opportunity zone through HUD’s 221(d)(4) loan program.”
Jeremy Pino, Livingston Hessam, Carl Passmore, and Kyle Miller, of Walker & Dunlop’s Capital Markets group, collaborated across the platform with FHA Financing experts, David Strange and Keith Melton. Together, the team arranged the loan through the Department of Housing and Urban Development’s (HUD) 221(d)(4) new construction program, which includes both construction and permanent financing in a single loan and mitigates interest rate risk for the developer, NR Investments. The program is also an ideal financing structure to take advantage of opportunity zone benefits, which requires that the developer holds the asset for a minimum of ten years. Walker & Dunlop’s experts coordinated amongst several parties, including the City of Miami, to ensure that the loan structure was consistent with Opportunity Zone requirements.
“The availability of affordable housing is an issue of national concern,” says Jeremy Pino. “Through the creative application of opportunity zone incentives, local subsidies and HUD long term construction financing, UNI Tower is an example of how the federal government, local municipalities and private developers can work together to be part of the solution”
Walker & Dunlop is the third largest provider of capital to the U.S. multifamily market, lending over $42 billion for multifamily properties in 2021. With one of the strongest networks in the industry, the firm’s 2021 brokered loan originations totaled $30 billion, a 170% increase over 2020. To learn more about our Capital Markets capabilities and financing options, visit our website.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest providers of capital to the commercial real estate industry, enabling real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology makes us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,400 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune’s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.