Affiliated Development Breaks Ground in South Florida
The developer has secured $50 million in financing.
Affiliated Development has launched construction on The Spruce in West Palm Beach, Fla., after closing $50 million in financing. Situated between 24th and 25th Streets in the heart of Northwood Village, The Spruce will be a 270-unit, eight-story mid-rise building located near Northwood’s shopping, dining and nightlife. Apartments will be offered in one-, two- and three-bedroom layouts, many at workforce-level rents. Amenities will include a rooftop pool with unobstructed views of the Intracoastal Waterway.
The Spruce is being constructed by West Palm Beach-based general contractor Verdex Construction, and was designed by the company’s in-house architecture firm, A+R.
“There are other factors in a lender’s decision-making process besides the strength of the project and borrower,” Nick Rojo, co-founder of Affiliated Development, told Multi-Housing News. “Timing is very important.”
Actively looking
“Many lenders in the current market environment are preserving capital given their current borrowers are opting to extend their loans out instead of refinancing due to the interest rate environment,” said Rojo. “To combat the lack of liquidity in the market, we ran an extensive process and targeted lenders with large balance sheets that were actively looking for opportunities in the South Florida market. BMO is a new relationship for us, and we are thrilled to partner with them. They are a top-tier, multinational institution with a trillion-dollar balance sheet that can support us and our pipeline.”
The Spruce benefited from a collaboration between public and private entities to address both redevelopment and housing. In spring 2023, the West Palm Beach CRA and City of West Palm Beach awarded the developer $2.5 million in funding incentives and $5.1 million in tax increment financing to bridge the funding gap and help fund the development. Affiliated also participated in the Palm Beach County Workforce Housing Exchange program by partnering with two publicly traded home builders to absorb their workforce housing requirements. A philanthropic grant was also secured to subsidize the building of additional affordable units.
Earlier this month, the CetraRuddy-designed West Palm Beach community Lumaire commenced leasing.
