BMO Lends $50M to Build Affordable Housing in West Palm
By Julia Echikson August 29, 2024 7:19 pm
reprints
Affiliated Development secured a $50 million construction loan from the Bank of Montreal to build an apartment building with an affordable housing component in West Palm Beach, Fla.
Called The Spruce, the eight-story development is set to feature 270 units and about 2,300 square feet of retail space at 2501 Spruce Avenue, south of 25th Street in the northern part of the city. About 43 percent of the residences, or 117 units, will be price capped, with rents affordable to families earning at least 80 percent of the area’s median income.
Construction is expected to cost $88 million. It’s scheduled to be completed in the first quarter of 2026.
Grace Development sold the 1.4-acre site to Affiliated Development for $1.7 million last year, according to property records. Palm Beach-based Grace Development remains a partner in the development, according to a representative for Affiliated Development, which is based in Fort Lauderdale.
The City of West Palm Beach and The West Palm Beach Community Redevelopment Agency have awarded the project $2.5 million in funding incentives and $5.1 million in tax increment financing.
The financing marks the second recent South Florida loan for Bank of Montreal, which is also known as BMO (BMO). It originated a $96 million refinance for a 21-story office building in Fort Lauderdale.
Julia Echikson can be reached at jechikson@commercialobserver.com.
