Affiliated Development is looking to raise $250 million to provide equity capital for mixed-income multifamily projects across Florida.
Fort Lauderdale-based Affiliated, led by Nick Rojo and Jeff Burns, recently completed its initial round of capital fundraising, securing $50 million in commitments from municipal police and fire pension plans, a press release states. The firm focuses on developing apartment projects that include market-rate and workforce housing units via public-private partnerships with local governments.
“South Florida is the epicenter of the housing affordability crisis.” Burns said in a statement. “Over 60 percent of renters in the South Florida area are cost-burdened, meaning they pay more than 30 percent of their income on rent.”
This marks the second time in five years that Affiliated looks to raise equity capital for its projects. In 2020, the firm launched its inaugural fund that raised $100 million, an Affiliated spokesperson said. The funds were used for current projects such as The Pierce, a planned eight-story building with 236 apartments, half of which would be workforce housing; plus 16,800 square feet of restaurant and commercial space; and a 150-space garage in Boynton Beach. Affiliated is building the project on 2.3 acres that the firm acquired for $100 from the Boynton Beach Community Redevelopment Agency in exchange for providing the workforce housing units.
The inaugural fund also provided capital for The Dune, another planned eight-story project in Boynton Beach with 336 apartments and 2,600-square-foot of ground-floor commercial space; The Era, a planned eight-story project with 400 apartments in Fort Lauderdale; and The Spruce, a planned 270-unit mixed-income apartment project in West Palm Beach.
In May, Affiliated scored an $80 million construction loan for The Era, and nabbed a $50 million construction loan for The Spruce last year. Bank of Montreal provided the financing for both projects.
The $250 million fund will provide equity capital for Affiliated’s new pipeline of projects, including The Ray, a 400-unit mixed-income workforce housing development in Sunrise that was recently approved by the city, the release states.
