New Mixed-Income Apartments Are Headed to Ellenton
Another new luxury housing project is headed to the region. But this time, unlike many others, it will include an affordable housing component.
A joint venture between Defined Companies, a real estate investment company co-founded and led by Noah Leon and Steven Guasch, and Nadeb Investments Group, led by Eben Mensah, purchased the 7.86-acre parcel next to Ellenton Premium Outlets in Manatee County in an all-cash transaction for $4.95 million. SVN Commercial Advisory Group represented the seller, Ohm Teerth Development, in the deal.
Located at 5950 Factory Shops Blvd., the project will be called The Mitchell at Ellenton. It's the Fort Lauderdale-based Defined Comapnies' second foray into Manatee County and fifth in South Florida since its inception in 2017.
The property was previously approved for retail and commercial use, but the partnership re-entitled and permitted the property for a four-story, mid-rise style, luxury apartment community with resort-style amenities.
The buyers hope to break ground on the multifamily, 235-unit project by the end of September. Once that happens, Leon says it will take roughly 14 months to deliver the first phase of apartments. The site, previously a tree farm, is vacant, and the project won’t require any demolition to start.
Thanks to a density bonus incentive, of the 235 units, 25 percent of them—or 59 units—will be deemed affordable housing, targeting households that earn 81 to 120 percent of the $90,400 area median income (AMI). In Manatee County, that means qualifying households of two earn roughly $55,250 to $82,920 a year. For a two-bedroom apartment, that means the former would pay no more than roughly $1,553 a month and the latter would pay no more than roughly $2,331 a month.
A household of four qualifies for affordable housing if it earns roughly $69,050 to $103,560 a year. For a three-bedroom apartment, the former would pay no more than roughly $1,795 a month and the latter would pay roughly no more than $2,694 a month.
Other incentives to add an affordable housing component to the project included parking and buffer reductions, plus an expedited review from Manatee County’s Development Review Committee.
“With the incentives from the county we're able to make the deal more feasible without seeking any tax abatements, impact fee credits, or monetary benefits—just site incentives,” Leon says.
Despite the affordable housing component, all units will offer the same quality finishes and access to amenities.
Those include an interactive fitness center with the latest technology, like an interactive boxing ring (think: Peloton for boxing), yoga rooms, game areas, a bar and café, coworking spaces and a clubhouse. Outside the clubhouse, there will be a resort-style pool, fire pit, hammock and cabana areas with grills and even a photo opp wall.
Leon points to the connectivity of the location as a plus, too, with easy access to I-75 and U.S. Route 301.
SVN's Tony Veldkamp says, “The land had been approved for uses ranging from a movie theater to a 330-room hotel to some expansive retail space. In the end, though, this apartment building will serve the community very well.”
Actual pricing and the number of one, two and three-bedroom units have yet to be determined, since “things are fluid right now,” Leon says, highlighting fluctuating construction costs and federal interest rates.
“When we started, one of our objectives was to create affordable housing in the region. We struggled with that due to the rising cost of land, construction, timelines, and what certain municipalities are willing to do to make that happen," he continues. "We've realized we're not able to deliver entire projects that are considered affordable housing, but the mixed-income model works and we’re happy to work with municipalities that make it mutually beneficial.”
Matt Fenske, also of SVN, said that The Mitchell at Ellenton is indicative of a boom the surrounding area has experienced in recent years.
“The North River market has more than 23,000 new homes approved or being built,” says Fenske. “Manatee County is one of the fastest-growing counties in the state, and this new construction will help accommodate some of that population influx.”