Affiliated Development scored a $34.1 million construction loan for its planned mixed-income multifamily project in Lake Worth Beach.
The Fort Lauderdale-based developer, led by Nicholas Rojo and Jeff Burns, is set to start building the 200-unit Bohemian, where 44 of the units will be workforce housing. BankUnited issued the loan on Wednesday, Rojo said.
The seven-story, 215,000-square-foot building is to rise on 1.8 acres at 1017 Lake Avenue. The project will have 367 parking spaces, 120 of which will be leased by the city as public parking.
Monthly rents for workforce units will start at $1,200 for a one-bedroom, much below the $2,000 a month market rate in the area, Rojo said. Bohemian will be a Class A building with a pool, lounge and coworking space.
Construction is expected to be completed in summer 2022.
The project’s funding also includes $1.8 million from the Lake Worth Beach Community Redevelopment Agency, city incentives for infrastructure work, and $1.8 million from the Palm Beach County Workforce Housing Exchange Program, Rojo said.
The county requires developers in unincorporated areas who increase their projects’ density to add workforce housing. Developers can opt out of this if they pay into the housing exchange program, which in turn allocates funds to developers such as Affiliated who are building workforce units.
Bohemian also is funded in part by $11 million in equity from an Affiliated housing impact fund. Affiliated launched the fund in November, with the goal of raising $125 million for mixed-income rental projects by partnering with pension funds and other investors. Burns and Rojo also invest in the fund and serve as general partners.
South Florida’s multifamily market is emerging from economic uncertainty caused by the pandemic, with several financing deals closing recently. The mixed-use SoLé Mia project in North Miami just scored a $32 million construction loan for its second rental community, the six-story, 187-unit Villa Solé.
Stiles Corp. and PGIM Real Estate in March nabbed a $64.2 million construction loan for their 315-unit Plantation Midtown Apartments at 1301-1303 Southwest 80th Terrace in Plantation.