Thursday, December 26th, 2024

Affiliated Lands $46M to Build Workforce Housing in Hollywood, Fla.

By Julia Echikson March 20, 2024 4:51 pm

Tropic development. Rendering: MSA Architects

Affiliated Development secured a $45.5 million construction loan for a workforce housing development near the Young Circle in Downtown Hollywood, Fla., property records show.

The debt from Bank United will go toward building Tropic, an 18-story development housing 223 units at 303 S Federal Highway, just south of the Young Circle.

A quarter of units will be reserved for those earning up to 100 percent of the area median income with another 25 percent dedicated for those earning up to 120 percent, according to Broward County filings.

In exchange, the Hollywood City Commission approved a $6.6 million incentive package for the project, which includes a forgivable loan and a property tax reimbursement from the Community Redevelopment Agency, the South Florida Business Journal reported in 2021.

It’s unclear whether Affiliated Development is utilizing the Live Local Act, a Florida law meant to spur the construction of affordable housing. A representative for the firm did not immediately respond to a request for comment.

The Fort Lauderdale-based developer purchased the 0.7-acre site for $4.2 million in 2021, according to property records.

Tropic isn’t the only development underway in and around the Young Circle. In 2022, BTI Partners and Bridge Investment Group secured $83 million for a rental project on the site of the former Bread Building, part of a $500 million mixed-use development.

Despite high interest rates, South Florida multifamily projects are still getting funding. Just this week, Privee Capital secured a $59 million construction loan for a multifamily complex near Downtown Coral Gables.

Julia Echikson can be reached at jechikson@commercialobserver.com.

Keywords:
Tropic, Affiliated Development, Bank United