Affiliated Development has secured a $ 34.1 million construction loan for its mixed-income multi-family project in Lake Worth Beach.
The Fort Lauderdale-based developer, led by Nicholas Rojo and Jeff Burns, is set to begin building the 200-unit Bohemian, where 44 of the units will be workforce housing. BankUnited issued the https://oakparkfinancial.com/ loan on Wednesday, Rojo said.
The 7-storey, 215,000 square foot building will stand on 1.8 acres at 1017 Lake Avenue. The project will have 367 parking spaces, 120 of which will be rented by the city as public parking.
Monthly rents for labor units will start at $ 1,200 for a bedroom, well below the market rate of $ 2,000 per month in the area, Rojo said. Bohemian will be a Class A building with a swimming pool, lounge and coworking space.
Construction is expected to be completed in the summer of 2022.
Funding for the project also includes $ 1.8 million from the Lake Worth Beach Community Redevelopment Agency, city incentives for infrastructure work, and $ 1.8 million from the Labor Housing Exchange Program. Palm Beach County artwork, Rojo said.
The county is asking developers of unincorporated areas that are increasing the density of their projects to add workforce housing. Developers can choose not to participate if they pay into the home exchange program, which in turn allocates funds to developers such as affiliates who build labor units.
Bohemian is also funded in part by $ 11 million in equity from an affiliate housing impact fund. Affiliates launched the fund in November, with the aim of $ 125 million for mixed income rental projects in partnership with pension funds and other investors. Burns and Rojo also invest in the fund and serve as general partners.
Other projects funded by the fund include the 289 eight-story mixed-use housing units. Great in West Palm Beach, and the 208 18-story units The tropic at Hollywood.
The South Florida multi-family market is emerging from the economic uncertainty caused by the pandemic, with several funding deals being made recently. The SoLé Mia mixed-use project in North Miami has just scored a $ 32 million ready for construction for its second rental community, Villa Solé with six floors and 187 apartments.
Stiles Corp. and PGIM Real Estate secured a $ 64.2 million construction loan in March for their 315 Plantation Midtown apartments, located at 1301-1303 Southwest 80th Terrace in Plantation.