Affiliated Development started construction of a planned West Palm Beach apartment building after nabbing a $50 million loan.
Bank of Montreal provided the financing for The Spruce, an eight-story multifamily project with 270 units being developed on a 1.5-acre site at 2501 Spruce Avenue, a press release states.
Fort Lauderdale-based Affiliated plans to complete The Spruce in 2026, the release states. The property owner, Palm Beach-based Grace Development, along with Affiliated Housing Impact Fund and an unnamed family office are investors in the project, which is designed by architecture firm A+R, an affiliate of Fort Lauderdale-based Rinka+.
Last year, the West Palm Beach Community Redevelopment Agency and the city of West Palm beach awarded the developer $2.5 million in incentives and $5.1 million in tax increment financing, city records show.
West Palm Beach officials also last year approved Affiliated’s request to increase The Spruce by 70 units and two stories from a previous plan for a six-story, 200-unit apartment building, city records show.
In exchange for the incentives and building bonuses, Affiliated is setting aside 117 apartments for households earning 80 percent to 100 percent of the area median income. The Spruce will offer a mix of one-, two- and three-bedroom units, the release states.
Led by co-founders Nick Rojo and Jeff Burns, Affiliated specializes in mixed-use and multifamily projects with workforce housing, the release states. The firm is active in Broward and Palm Beach counties.
In March. Affiliated scored a $45.5 million construction loan for The Tropic, a planned 18-story building with 223 apartments in Hollywood. Half the units will be for households earning 100 percent to 120 percent of the area median income.
The previous month, the firm paid $12 million for a 4.3-acre assemblage that includes a two-story office and retail building and a vacant lot in Boynton Beach. It also dropped $15 million for a multifamily development site in Fort Lauderdale.