Affiliated Secures $45.5M for New Workforce Housing Project in Downtown Hollywood, FL

Affiliated Development has secured a $45.5 million construction loan for a workforce housing project situated near the Young Circle in Downtown Hollywood, Florida. Property records indicate the loan obtained from Bank United will contribute to the construction of 'Tropic,' an 18-story development accommodating 223 units at 303 S Federal Highway.

Project Details and Affordability Measures

Tropic's construction will encompass a quarter of the units being reserved for individuals earning up to 100 percent of the area median income, with an additional 25 percent allocated for those earning up to 120 percent. These specifics are outlined in Broward County filings.

Incentive Package Approval

To incentivize the project, the Hollywood City Commission has approved a $6.6 million incentive package. This package includes a forgivable loan and property tax reimbursement facilitated by the Community Redevelopment Agency, as reported by the South Florida Business Journal in 2021.

Utilization of Live Local Act and Property Acquisition

It remains unclear whether Affiliated Development will leverage the Live Local Act, a Florida law aimed at stimulating the construction of affordable housing. The developer purchased the 0.7-acre site for $4.2 million in 2021, as indicated by property records.

Other Developments in the Area

Tropic joins other developments in the vicinity of Young Circle. In 2022, BTI Partners and Bridge Investment Group secured $83 million for a rental project situated on the former Bread Building site, part of a larger $500 million mixed-use development initiative.

Continued Funding Amidst Market Conditions

Despite prevailing high interest rates, multifamily projects in South Florida, including Tropic, continue to receive funding. Privee Capital recently obtained a $59 million construction loan for a multifamily complex near Downtown Coral Gables.

By securing substantial financing and adhering to affordability measures, Affiliated Development's Tropic project aims to address housing needs in Downtown Hollywood while contributing to the broader urban development landscape of South Florida.