New York-based Related Companies, led by Steve Ross, has made another significant acquisition in the affordable housing market. Following their recent purchase of a Miramar affordable housing complex, Related has acquired the Federation Plaza building in Hollywood for $29.7 million. The property, completed in 1988, offers 123 units across five stories and nearly 3 acres.
The purchase was facilitated through a joint entity connected to both Related and the Foundation for Affordable Housing (FFAH), with a $32.1 million mortgage secured from Wells Fargo. This transaction comes with a commitment to maintaining the property’s affordability status, ensuring it remains a below-market rental housing option for decades to come. Specifically, Federation Plaza will retain its Section 8 protections for the next 20 years and its Low-Income Housing Tax Credit protections for the next 30 years.
This acquisition follows Related’s recent purchase of the Sorrento complex in Miramar, a garden-style property with 320 units, for $48.2 million. Additionally, in the previous year, the company acquired the Monterra affordable apartment complex in Cooper City for $55.5 million. In 2021, Related invested $65 million in the Saint Andrews Residence at 208 Fern Street and the Saint James Residence at 400 South Olive Avenue in West Palm Beach, both of which are affordable rental properties.
While Related Companies, founded by Steve Ross in 1972, initially focused exclusively on affordable housing development, the firm has since diversified into high-end residential and commercial projects. In South Florida, Related is recognized as the largest office owner in downtown West Palm Beach.
