Fort Lauderdale-based Affiliated Development has closed a $74 million construction loan with Pacific Life Insurance Company to finance The Cove, a 376-unit mixed-use, mixed-income residential project at the intersection of Sunrise Boulevard and Federal Highway in Fort Lauderdale.
What is The Cove and where will it be built?
The Cove is an eight-story multifamily development that Affiliated Development will construct on the site of a former hotel at Sunrise Boulevard and Federal Highway in Fort Lauderdale, placing future residents within minutes of both the beach and downtown employment centers.
- Project height: eight stories
- Total residential units: 376
- Site history: former hotel property
- Location advantages: proximity to Fort Lauderdale beach and downtown job corridors
How does Florida's Live Local Act factor into this project?
The Cove incorporates a workforce housing component made possible under Florida's Live Local Act, a state law designed to incentivize attainable rental housing by offering developers density and zoning benefits in exchange for income-restricted units.
- Florida's Live Local Act enables mixed-income projects by streamlining local approval processes
- The workforce housing component targets renters priced out of the market-rate sector
- Fort Lauderdale's affordability pressures have intensified in recent years, making programs like Live Local Act increasingly consequential for working residents
Why does this financing matter for South Florida housing affordability?
The $74 million construction loan from Pacific Life Insurance Company represents a significant capital commitment to attainable rental housing in a South Florida submarket where rising rents have outpaced wage growth, signaling continued private-sector appetite for mixed-income deals structured under state affordability frameworks.
- Lender: Pacific Life Insurance Company, a major institutional financing source
- Developer: Affiliated Development, headquartered in Fort Lauderdale
- The deal demonstrates that workforce housing projects can attract large-scale institutional debt even in a tighter lending environment
- Broward County residents have faced some of the sharpest rent increases in Florida over the past several years
What should Fort Lauderdale residents expect next?
With financing now closed, Affiliated Development can move forward with construction on The Cove, advancing a project that will add 376 rental units to a supply-constrained Broward County market and test the Live Local Act's capacity to deliver meaningful affordability at scale.
Original reporting on the construction loan closing was first published by YieldPro.
