$50M West Palm Beach Apartment Boom: Affiliated Development Breaks Ground

Affiliated Development has begun construction on a new apartment building in West Palm Beach, having secured a $50 million loan.

The Bank of Montreal provided the financing for The Spruce, an eight-story multifamily development featuring 270 units. The project is located on a 1.5-acre site at 2501 Spruce Avenue, according to a press release.

Affiliated Development, based in Fort Lauderdale, is co-developing The Spruce with an unnamed private family office. The project is expected to be completed by 2026. Grace Development, based in Palm Beach, owns the property and is also an investor in the project. The design of The Spruce is being handled by A+R, an architecture firm affiliated with Fort Lauderdale’s Rinka+.

Last year, the West Palm Beach Community Redevelopment Agency and the city of West Palm Beach granted the developer $2.5 million in incentives and $5.1 million in tax increment financing. Additionally, the city approved an expansion of The Spruce, increasing the project from a six-story, 200-unit building to an eight-story, 270-unit complex.

In return for the incentives and increased building capacity, Affiliated Development will reserve 117 apartments for households earning between 80% and 100% of the area median income. The Spruce will offer a variety of unit types, including one-, two-, and three-bedroom apartments.

Affiliated Development, led by co-founders Nick Rojo and Jeff Burns, specializes in mixed-use and multifamily projects with a focus on workforce housing. The firm is active in Broward and Palm Beach counties.

In March, Affiliated secured a $45.5 million construction loan for The Tropic, an 18-story building with 223 apartments in Hollywood, with half of the units designated for households earning between 100% and 120% of the area median income. The previous month, the firm acquired a 4.3-acre site in Boynton Beach for $12 million, which includes a two-story office and retail building and a vacant lot. Additionally, they invested $15 million in a multifamily development site in Fort Lauderdale.