One of Fort Lauderdale's busiest corners is about to get 376 new homes — and more than half of them are being reserved for the workforce that keeps the city running. Affiliated Development has closed a $74 million construction loan from Pacific Life Insurance Company for The Cove, a mixed-use, mixed-income community rising on the northwest corner of Sunrise Boulevard and Federal Highway, and construction is set to begin right away.
Built on the site of a former hotel, The Cove will be an eight-story building with 376 residential units and structured parking, minutes from the beach, downtown Fort Lauderdale, and the region's biggest employment centers. What makes it notable isn't just the location — it's the affordability commitment baked into the deal.
Class A Living at Attainable Rents
Affiliated Development has carved out a niche building luxury, Class A multifamily communities that rent at prices middle-income households can afford. The Cove follows that playbook: a resort-style amenity package and high-end finishes, paired with rents aimed at working families rather than only the top of the market — a segment South Florida has undersupplied for years.
How the Live Local Act Made It Possible
The Cove leans on Florida's Live Local Act, the state law designed to spur workforce housing. In exchange for dedicating at least 40% of units to workforce housing, qualifying mixed-income projects can win administrative development approvals — a faster, more predictable path — along with height and density bonuses that make the numbers work.
Affiliated pushed well past that 40% floor. At The Cove, 207 units — about 55% of the building — will be income-restricted to households earning no more than 120% of Area Median Income (AMI).
What is 120% of AMI?
“Area Median Income” is the midpoint income for a metro area, published annually by HUD. Capping eligibility at 120% of AMI targets the “workforce” or “missing middle” tier — teachers, nurses, first responders, and service workers who often earn too much for traditional affordable housing but too little to comfortably rent Class A units at market rates.
A Public-Private Partnership Doing the Heavy Lifting
Deep affordability doesn't happen on developer will alone — it takes the public sector at the table. The Cove is the third collaboration between Affiliated, the City of Fort Lauderdale, and Broward County, and both governments put real incentives behind it:
| Incentive | Terms | Cap |
|---|---|---|
| City of Fort Lauderdale property-tax rebate (Nov 2024) | 100% for 15 years | Up to $8.83M |
| Broward County property-tax rebate (Jan 2025) | 50% for 30 years | Up to $5.45M |
Co-founder Nick Rojo credited the partnership with the city and county for letting the team push affordability far past the state minimum. Fellow co-founder Jeff Burns noted that redeveloping an aging hotel site into 376 homes — more than half of them workforce housing — is exactly the kind of project a fast-growing city needs.
The Team and the Capital Stack
Moss Construction is the general contractor — its eighth project for Affiliated Development — with Rinka serving as architect. On the financing side, The Cove pairs the $74 million Pacific Life first mortgage with equity from the Affiliated Housing Impact Fund, LP (which channels local pension dollars) and family-office capital partners. It's the second Affiliated project financed by Pacific Life, following a $72.56 million loan in December 2025 for The Dune, a Live Local, mixed-income development in Boynton Beach.
Class A finishes, resort amenities, and rents a middle-income household can actually reach — that's the model South Florida needs more of.
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Why It Matters for Fort Lauderdale
Fort Lauderdale has seen a wave of new development, but the vast majority has targeted the luxury market. Projects like The Cove matter because they aim at the middle — the households priced out as rents climbed, yet essential to the local economy. Redeveloping an underused hotel parcel into hundreds of homes also adds supply in a supply-starved market, which over time helps take pressure off rents.
For renters, it means new, high-quality inventory with income-qualified pricing at a prime address. For the broader market, it's a template: legislative tools like the Live Local Act, combined with city and county incentives and creative financing, can deliver quality housing at attainable prices even in high-cost coastal markets.
The Bottom Line
The Cove is more than a groundbreaking — it's a proof point. With 207 of its 376 units reserved for workforce households, a fast-tracked approval under the Live Local Act, and a capital stack blending institutional, pension, and family-office dollars, it shows how South Florida can build attainable housing without sacrificing quality. Expect more projects to follow this blueprint.
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Frequently Asked Questions
The Cove is a 376-unit, mixed-income, Class A multifamily development by Affiliated Development on the northwest corner of Sunrise Boulevard and Federal Highway, on the site of a former hotel. It's an eight-story building with structured parking, financed with a $74 million construction loan from Pacific Life.
207 units — about 55% of the building — will be income-restricted to households earning no more than 120% of Area Median Income (AMI). That's well above the 40% minimum required under Florida's Live Local Act.
It's a Florida law that encourages workforce housing. Mixed-income projects that reserve at least 40% of units as workforce housing can receive administrative (faster) approvals plus height and density bonuses, making it easier to build attainable housing in high-cost areas.
Construction was expected to begin immediately following the August 2026 loan closing. Delivery timelines for an eight-story building typically run a couple of years; confirm current leasing and completion dates with the developer.
