Bluelofts Inc. plans workforce accommodations
Dallas-based property company Bluelofts Inc. is planning to launch an investment fund focused on converting empty office buildings into workforce accommodations. The firm aims to raise $100 million in equity to develop up to 3,000 residential units within underutilized office spaces. Bluelofts Inc. believes that the transformation of vacant offices into accessible housing options will address both the growing remote work trend and the housing shortage issue in urban centers. By providing affordable, modern living spaces for the workforce, the company hopes to enhance urban living and simultaneously revitalize the commercial real estate market.
Having a successful history of office-to-residential conversions in Dallas, Fort Worth, and Cleveland, Bluelofts recently purchased the 16-story Oil & Gas Building and the 19-story Star-Telegram Building, with plans to develop unoccupied areas in these structures into apartments.
Collaboration with architects and designers
In collaboration with local architects and designers, Bluelofts aims to create modern, energy-efficient living spaces that seamlessly blend with each building’s historic architecture. This adaptive reuse project not only supports urban revitalization but also addresses the growing demand for residential units in these thriving downtown areas.
Bluelofts’ representative, Ike Bams, expressed that the newly-formed Bluelofts Middle Income Housing Fund will be devoted solely to workforce rental apartments, with most of the units in each project being designated as affordable. This initiative aims to address the growing demand for affordable housing options for middle-income individuals and families, ensuring that these essential members of our communities can find suitable living spaces without being burdened by exorbitant costs.
Strategic construction and development
The fund will support the construction and development of properties in strategic locations, with a focus on accessibility, strong amenities, and close proximity to important services and public transportation networks. As office vacancy rates continue to grow in North Texas, property developers and civic officials are contemplating the conversion of more vacant offices into rental spaces. The surge in remote working caused by the COVID-19 pandemic has largely contributed to the increase in vacant office spaces. Repurposing these spaces for residential rentals can help address the high demand for affordable housing in the area, while simultaneously reviving the local economy.
Housing advocates pushing for city allocations
Housing advocates are also pushing the city to allocate millions of dollars for the development of additional affordable living spaces. These funds will greatly aid in addressing the current housing crisis, allowing for the construction of new homes and the renovation of existing structures to ensure affordability and quality. By creating and maintaining a diverse range of affordable housing options, the city aims to foster inclusive communities while also supporting the economic well-being of its citizens.
Seeking tax benefits and grants
John Williams, a partner at Bluelofts, disclosed that developers hope to obtain tax benefits and grants to support the financing of new workforce housing ventures. These incentives aim to make these projects more economically viable, ultimately leading to the creation of affordable homes for the workforce. By doing so, they will not only be addressing the rising demand for reasonably priced housing but also foster a sense of community and sustainability within the area.
Properties assessment and expansion plans
He disclosed that the company is currently assessing several dozen properties, many of which are situated just outside the central business district. These properties are being evaluated based on their potential to accommodate the expanding workforce as well as future growth prospects. The strategic locations, just outside the central business district, offer a unique opportunity for the company to establish presence without facing extraordinarily high costs in city centers.
Focus on downtown locations
Bluelofts intends to concentrate on downtown locations for the nine conversion projects it has arranged thus far. Additionally, Bluelofts aims to transform underutilized spaces into modern, functional living spaces that cater to the evolving needs of urban dwellers. By focusing on downtown locations, the company hopes to contribute to the revitalization of city centers and promote sustainable urban living.
First Reported on: dallasnews.com
Frequently Asked Questions
What is the main goal of Bluelofts Inc.’s investment fund?
The investment fund aims to convert empty office buildings into workforce accommodations, addressing the growing remote work trend and the housing shortage issue in urban centers. Bluelofts Inc. plans to raise $100 million in equity to develop up to 3,000 residential units within underutilized office spaces.
What is the focus of the Bluelofts Middle Income Housing Fund?
The fund will be devoted solely to workforce rental apartments, with most of the units in each project designated as affordable. This initiative aims to address the growing demand for affordable housing options for middle-income individuals and families.
What are the criteria for selecting properties for conversion projects?
Properties are assessed based on their potential to accommodate the expanding workforce, future growth prospects, and strategic location with a focus on accessibility, strong amenities, and close proximity to important services and public transportation networks.
Why is Bluelofts focusing on downtown locations for the conversion projects?
By concentrating on downtown locations, the company aims to contribute to the revitalization of city centers and promote sustainable urban living, turning underutilized spaces into modern, functional living spaces that cater to the evolving needs of urban dwellers.
What are housing advocates pushing for to address the housing crisis?
Housing advocates are urging the city to allocate millions of dollars for the development of additional affordable living spaces. These funds will support the construction of new homes and the renovation of existing structures, ensuring affordability and quality for a diverse range of housing options.
What financial incentives are developers seeking to support workforce housing ventures?
Developers, such as John Williams of Bluelofts, hope to obtain tax benefits and grants to finance new workforce housing projects. These incentives aim to make the projects more economically viable, ultimately leading to the creation of affordable homes for the workforce and fostering community and sustainability within the area.
