The approved Plantation mixed-use project from Related Group and BH Group is being cut from 512 units to 385, along with other retail reductions. Why is this strategy so different from their $360 million bet in Hollywood? Here's the breakdown.
Key Takeaways
- Related Group and BH Group are seeking city approval to shrink their project at 8601 West Sunrise Boulevard from 512 units to 385.
- Commercial space is being cut by 51.5%, and the height is dropping from 8 stories to 6.
- The same developers just closed a $360 million construction loan for Icon Beach in Hollywood, signaling confidence in for-sale luxury but caution in Broward rentals.
Related Group and BH Group paid $13 million in 2023 for a 13.7-acre former AT&T training center at 8601 West Sunrise Boulevard in Plantation. In December 2024, the city approved a mixed-use project with 512 residential units, 24,970 square feet of commercial space, 8 stories, and 833 parking spaces. That approval required six zoning waivers.
Now, according to Florida YIMBY, the developers are seeking approval for a significantly smaller project: 385 units (down 24.8%), 12,105 square feet of retail (down 51.5%), 6 stories (down from 8), and 610 parking spaces. The revision was presented to the Plantation City Council in April 2026.
Why are they scaling back?
Neither Related Group nor BH Group has issued a public statement explaining the decision. The Real Deal frames the move as a response to stagnant rents in Broward County's multifamily market. Florida YIMBY attributes it to "shifting market changes." The most accurate read is that the project is adapting to current conditions, with nearly 3,500 rental units delivered in Broward in 2025, and rent growth flat to declining.
As Larry Mastropieri explained on the Discover South Florida Podcast: "Plantation is a strong, dense market overall, but this is not downtown Miami or downtown Fort Lauderdale. It is a different demand profile. That may be part of why they are being more careful here."
This is not a sign that Related and BH cannot get capital or execute the project. The same joint venture just closed a $360 million construction loan for Icon Beach, a 350-unit luxury condo in Hollywood, with construction set to start in May 2026. They are bullish on South Florida's for-sale luxury market and cautious on Broward's rental market simultaneously.
What does each reduction signal?
The retail cut (51.5% reduction) is the most revealing number. Halving the commercial space signals the developers have less confidence in suburban Plantation's ground-floor retail demand than in its residential demand.
The height reduction (from 8 to 6 stories) removes the need for special zoning waivers that the original plan required to exceed Plantation's standard height limits. It also reduces construction cost, since structural costs rise disproportionately above 5 stories.
The unit reduction (127 fewer units) means lower construction debt, lower carrying cost, and lower absorption risk. The math only works if the original 512-unit underwriting no longer pencils at current rent projections.
The 16 for-sale townhomes are retained and likely become more important. Townhome sales generate lump-sum revenue that can help cross-subsidize the rental component's slower lease-up in a flat-rent environment.
Considering new construction in Plantation or Broward County? Talk to a real estate agent in Coral Springs who understands how rental market trends affect new development timelines. Reach out to The Mastropieri Group or call (954) 710-6504.
How does this compare to Related and BH's other projects?
The contrast with the developers' other active projects makes the strategy clear:
Icon Beach (Hollywood Beach): 350 for-sale condo units, 38 stories. The joint venture closed a $360 million construction loan in April 2026, with construction starting in May 2026. This is a high-conviction bet on luxury for-sale product.
Ritz-Carlton Residences (West Palm Beach): 138 for-sale condo units on North Flagler Drive. Under construction and reportedly 70%+ pre-sold. Another for-sale success story for the same partnership.
Plantation City Center (this project): 385 rental units, 6 stories. Downsized from the approved version. The rental component carries more risk in the current Broward market.
Related and BH are not retreating from South Florida. They are reallocating risk, leaning into for-sale luxury and pulling back on suburban rentals where supply has outpaced demand.
What is included in the revised project?
The revised plan includes 385 residential units with 10% designated as affordable (up to 120% of Area Median Income). The unit mix includes mostly one-bedroom and two-bedroom apartments, 39 three-bedroom units, and 16 for-sale townhomes. Amenities include a swimming pool, sports courts, and 610 parking spaces. Arquitectonica is the architect.
The smaller version may simply be the cleaner, safer, and more profitable path. Dropping from 8 to 6 stories eliminates the need for a zoning waiver. Cutting retail in half reflects realistic suburban tenant demand. Reducing the unit count lowers capital requirements and the lease-up timeline.
This is not a distressed project. It is a recalibrated one.
Watch More on This Topic
Watch: Related and BH Plantation Segment ・ Full Episode: DSF Live Ep. 77 ・ Last Week's Recap: Ep. 76
Frequently Asked Questions
What is happening to the Related Group project in Plantation?
Related Group and BH Group are seeking city approval to downsize their approved mixed-use project at 8601 West Sunrise Boulevard. The revised plan reduces the project from 512 units to 385 (down 24.8%), cuts retail space by 51.5%, and drops the height from 8 stories to 6.
Why is Related Group downsizing the Plantation project?
The developers have not issued a public statement, but the revision appears to be a response to stagnant rents in Broward County's multifamily market. Nearly 3,500 rental units were delivered in Broward in 2025, and rent growth has been flat to declining.
How much did Related Group pay for the Plantation site?
Related Group and BH Group paid $13 million in 2023 for the 13.7-acre former AT&T training center at 8601 West Sunrise Boulevard. The original four-story office building has been demolished.
Will the Plantation project include affordable housing?
Yes. The revised plan designates 10% of the 385 units as affordable for households earning up to 120% of the Area Median Income (AMI). The project also includes 16 for-sale townhomes and 39 three-bedroom units.
When will the Related Group Plantation project be built?
The revised plan was presented to the Plantation City Council in April 2026 and is pending approval. The construction timeline has not been announced. The developers are also working on Icon Beach in Hollywood, which is set to start construction in May 2026.
Local help for buyers and investors in Plantation
If you are buying, selling, or investing in Plantation, Sunrise, or anywhere in western Broward County, understanding how rental market conditions affect new development matters. Reach out to The Mastropieri Group, Realtors®.
For practical, hands-on support across Plantation and Coral Springs, call (954) 710-6504.
Posted by Larry Mastropieri
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