Think Outside the Box for New Developments
By: Multifamily Real Estate Industry Team
Given current market conditions, developers of multifamily projects may find it difficult if not impossible to continue developing in the way that they did in the recent past. But this does not mean that it is impossible to develop new multifamily project. Rather, developers must explore new project types and reach out to different development partners to continue doing business.
Multifamilybiz.com showcases a good example in Delanco, New Jersey. Michaels Development Company, an affordable housing developer, has undertaken the first phase of mixed-use project that includes 64,000 square feet of commercial space, one-fourth of which is preleased for health care use, and 120 residential units. The developer is partnering with a church to develop the project, which is being developed on the site of a former amusement park that was owned by the church.
The project illustrates how varying funding sources and development approaches that might not have been attractive to developers in the past can be used to jumpstart projects. While these projects may present complexities beyond those that many multifamily developers are accustomed to, they also present potential benefits. Mixed-use development often is more appealing to local governmental bodies than stand alone multifamily development because it offers opportunities for smart growth and green development. Partnering with a non-profit can also unlock land that might not otherwise be available at an affordable price and also may provide an additional marketing outlet for rental units. Finally, the use of federal assistance, such as the low income housing tax credits that were used in the New Jersey project, can help bridge the financing gap and reduce the amount of developer equity that is required.
(for the full articles go to http://www.multifamilybiz.com/article.aspx?id=2129)
(This entry posted by Erica Harvey, a member of Womble Carlyle's Real Estate Development group)
Multifamilybiz.com showcases a good example in Delanco, New Jersey. Michaels Development Company, an affordable housing developer, has undertaken the first phase of mixed-use project that includes 64,000 square feet of commercial space, one-fourth of which is preleased for health care use, and 120 residential units. The developer is partnering with a church to develop the project, which is being developed on the site of a former amusement park that was owned by the church.
The project illustrates how varying funding sources and development approaches that might not have been attractive to developers in the past can be used to jumpstart projects. While these projects may present complexities beyond those that many multifamily developers are accustomed to, they also present potential benefits. Mixed-use development often is more appealing to local governmental bodies than stand alone multifamily development because it offers opportunities for smart growth and green development. Partnering with a non-profit can also unlock land that might not otherwise be available at an affordable price and also may provide an additional marketing outlet for rental units. Finally, the use of federal assistance, such as the low income housing tax credits that were used in the New Jersey project, can help bridge the financing gap and reduce the amount of developer equity that is required.
(for the full articles go to http://www.multifamilybiz.com/article.aspx?id=2129)
(This entry posted by Erica Harvey, a member of Womble Carlyle's Real Estate Development group)
