Related Cos. Buys Another Senior Affordable Housing Rental in Broward County
Stephen Ross’s Related Companies strikes again in Broward County, buying another affordable housing complex.
The New York-based developer paid $29.7 million for Federation Plaza Apartments, an affordable senior housing community. Located at 3081 Taft Street in Hollywood, Fla., the five-story building houses 124 units, whose rents are capped at 30 percent of the area’s median income for those over the age of 62.
The transaction equates to roughly $239,500 per apartment, and Related nabbed a $32 million acquisition loan from Wells Fargo. The developer has extended project-based section 8 protections on this site for the next 20 years, as well as added LIHTC affordability protections for 30 years, according to a source close to Related.
“We are proud to have acquired Federation Plaza Apartments in order to extend its affordability protections and make upgrades to the property,” per a statement from Related.
The seller, The Foundation for Affordable Housing, acquired the complex, which was completed in 1988, for $12.1 million in 2016. Representatives for the Oregon-based nonprofit.
Federation Plaza’s sale comes just days after Related purchased an affordable housing complex in Miramar for $48 million. The firm’s South Florida affordable housing complex portfolio includes a 320-unit building in West Palm Beach, which it acquired for $65 million.
Since divesting from Jorge Pérez’s Related Group last year, Ross’s Related Companies has been expanding its presence across South Florida. Earlier this year in a blockbuster deal, the developer snapped up the development site of a Robert Stern-designed luxury condo building for $195 million.
In Miami, it’s developing an 80-story office building, though the project recently hit a snag. During the demolition of the existing building last week, a large piece of concrete fell onto the road below, halting work on the site.
Update: The article was amended to include a comment from Related.
Julia Echikson can be reached at email@example.com.