Rendering of The Pierce with Affiliated Development CEO Jeff Burns
Affiliated Development has secured approval for The Pierce, a mixed-use development in downtown Boynton Beach with 236 apartments, half of which are rent-controlled labor units.
Fort Lauderdale-based Affiliated outbid four other developers — including related companies — for a mixed-use project at 115 North Federal Highway, which is owned by the city’s community redevelopment agency.
The development site sits on one city block bordered by Boynton Beach Boulevard to the north, Ocean Avenue to the south, Federal Highway to the east, and Florida’s East Coast Railroad to the west.
In their role as ARC’s board of directors, Boynton Beach City Commissioners on Tuesday approved Affiliated as the winning bidder in a request for proposals process to select a developer for the site, which is now a parking lot.
The four companies that competed against Affiliated in the bidding process were Related Urban Development Group LLC, USA Construction, E2L Real Estate Solutions LLC and Hyperion Group LLC.
ARC purchased the 4.5-acre property from the Boynton Beach Congregational Church of Christ in 2018 for $3 million, property records show.
The Pierce development site will be larger, however. The ARC has a contract to acquire three small properties – at 511, 517 and 529 Ocean Avenue – covering 0.4 acres on the south side of the same block. ARC plans to purchase these properties by the end of this month and resell them to Affiliated Development, Affiliated CEO Jeff Burns told The Real Deal.
“Part of the RFP was, if you wish, you can include this [land] as part of your proposal,” Burns said. “So we included it. Some people didn’t.
Affiliated itself has a contract to acquire another property on the same block, the Ocean Food Mart at 101 North Federal Highway. Rajas Family Investments owns the commercial building on the northwest corner of Ocean Avenue and Federal Highway, a busy intersection Burns called “Main and Main.”
In the bidding process, “the key thing that we had that nobody else had was the Ocean Food Mart,” Burns said. Rajas Family Investments agreed to sell the property after more than a year of negotiations, he said. The agreement includes the payment of a lease termination fee to the operator of the Ocean Food Mart.
Affiliated expects the cost to develop the eight-story Pierce project to be $73 million, including land costs. The company plans to pay $1 million for the site at 115 North Federal Highway, nearly $3.3 million for 101 North Federal Highway and $3.6 million for 511, 517 and 529 Ocean Avenue.
The Pierce will combine 118 market-priced apartments and 118 labor apartments that have lower monthly rents, and are reserved for tenants earning as little as 60% and up to 120% of the area’s median income.
Designed by MSA Architects, the mixed-use development will also include 16,800 square feet of restaurants, retail and office space. Seventy-nine percent of the site will be open for public use, including 150 public parking spaces.
The affiliate expects to sign a property purchase and development agreement with Boynton Beach ARC by February 2022, complete the design and permitting phase of the Pierce project by November 2022, begin construction in January 2023 and to be completed in July 2024.
Led by Burns and partner Nick Roho, Affiliated Development specializes in residential redevelopment projects with a workforce housing component. For example, Affiliated won Hollywood approval in May for a subsidized plan to build The Tropic, a 208-unit rental development in downtown Hollywood, where half of the apartments will be workforce housing. rent-controlled work.
Affiliated has also developed subsidized multifamily projects with labor units elsewhere in South Florida, including Fort Lauderdale, Lake Worth, and West Palm Beach.
Last year, Affiliated finished raising $125 million in equity, mostly from public pension funds, to fund developments that include workforce housing.
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