Fresh off buying a Miramar affordable housing complex, Steve Ross’ Related Companies purchased a below-market rental property in Hollywood for $29.7 million.
The New York-based firm bought the senior independent living Federation Plaza building at 3081 Taft Street, according to records. Foundation for Affordable Housing (FFAH), through an affiliate, sold the property, but kept an ownership stake.
The purchasing entity, tied to both Related and FFAH, took out a $32.1 million mortgage from Wells Fargo.
Completed in 1988, the five-story, 123-unit Federation Plaza spans nearly 3 acres, records show. The building last traded for $12.1 million 2016.
The recent purchase breaks down to roughly $241,400 per unit.
Related extended the property’s affordability status, meaning Federation Plaza will remain below-market rental housing for the coming decades, according to a company spokesperson.
The building will keep its Section 8 protections for the next 20 years and its Low-Income Housing Tax Credit protections for the next 30 years.
Three days prior to purchasing Federation Plaza, Related paid $48.2 million for the 320-unit, garden-style Sorrento complex at 8991-9577 Southwest 41st Street in Miramar, records show.
Last year, the firm also bought the Monterra affordable apartment complex at 2601 Solano Avenue in Cooper City for $55.5 million. In 2021, Related paid $65 million for the Saint Andrews Residence at 208 Fern Street, and the Saint James Residence at 400 South Olive Avenue in West Palm Beach. Both are affordable rental properties.
Ross founded Related in 1972 exclusively as an affordable housing development firm, though the company has completed a number of high-end residential and commercial projects since then.
In South Florida, Related is perhaps best known as the biggest office owner in downtown West Palm Beach.
Read more
Commercial
South Florida
Mapping out Stephen Ross’ South Florida conquests