PHOENIX, Feb. 3, 2021 /PRNewswire/ — Real Estate Development Executive Michael Johnson has utilized Government subsidies to expand and service his ever-growing multi-family empire. Already the State of Arizona’s largest rental subsidy partner, his latest foray in development and design may be his greatest challenge yet.
Johnson has launched an initiative to help combat the City of Phoenix’s burgeoning homelessness and affordable housing crisis. As a native Phoenician, Johnson has seen his beloved city go through many stages of housing booms, busts, and now pandemic stress. Through a planned staged rollout, Johnson plans to build several multi-unit affordable housing developments using recycled shipping containers throughout the city.
In addition to providing the need for adequate & affordable housing for those who may fall below 60% of the Miracopa County & local Phoenix average median income level (AMI), Johnson is again at the cutting edge of renovation and development by utilizing refurbished shipping containers as a housing alternative. Johnson plans to modernize the design of the 40 x 8 x 8 shipping container with a surface of approximately 320 sq. ft. creating a unique living space encompassing a leisure area, kitchen, bath and bedroom. In Arizona, homes built below 400 square feet falls under the category of a “tiny house” and Johnson’s developments will follow all respective building codes, including size regulations that require any home built with a foundation, to be no smaller than 200 square feet.
This unique housing concept is not new in the housing space or the hospitality industry. The FlopHouze Hotel just outside of Austin, Texas is a destination hot spot for millennials and traditional travelers alike. Visitors can choose from a half-dozen “houzes” outfitted with eco-friendly and recycled materials such as bowling alley floors. Hammocks, fire pits, cozy chairs and complimentary food & beverages are among the amenities. Through Michael Johnson Enterprises, the company has been quietly securing several vacant parcels across the city near transportation hubs and major traffic arteries.
“The initial phase will be 10-20 unit buildings, and ultimately we will have developments that will have 100-140 units. Our architecture and engineering partners have been trusted advisors on our vision for this initiative. We aim to not only provide accessible affordability, but also eco-friendly sustainable principles, long-term durability, and contemporary aesthetics,” said CEO Michael Johnson.
Within the universe of commercial real estate investing, Johnson’s drive and expertise has seen him take a $50,000.00 investment from Media Executive Bruce Johnson-Castille and turn that into a $20Million dollar portfolio in 4 short years. Michael Johnson and his real estate team have always taken a relatively conservative approach when selecting transactions for investment. This is vastly different. With this proven track record of success, Johnson is optimistic about this new initiative. “This is a more focused investment strategy, we are investing in both debt and equity in this specific property development type and the overall cost savings will allow us to be very opportunistic with the 3 million dollars of equity for deals, while solving a very serious problem in Miracopa County and beyond. I’ve always provided my investors significant returns and the benefit of potential appreciation in property values. And I expect this initiative to be no different,” added Johnson.
The launch of this initiative adds to the wave of opportunity for Johnson and his partners to invest in Phoenix area real estate. Johnson’s Phoenix area real estate investment portfolio consists of 17 multi-family properties, a Boutique Hotel, 2 Motels, The Upscale Barbershop and The Arizona Edition New Times honored, Bread & Honey House Restaurant.
SOURCE Michael Johnson