Work has begun on The Spruce, a new workforce-housing project in West Palm Beach. The developer, South Florida-based Affiliated Development, has closed on a $50 million first mortgage from the Bank of Montreal. 

Located in Northwood Village off Spruce Avenue between 24th and 25th streets, The Spruce will stand eight-stories tall and offer 270 one-, two- and three-bedroom apartments, 117 of which will be reserved for renters at various income levels, starting at 80% of area median income. 

The project is a public-private collaboration. In April 2023, the West Palm Beach Community Redevelopment Agency and City of West Palm Beach awarded Affiliated Development $2.5 million in funding incentives and $5.1 million in tax-increment financing to help finance the project.   

Affiliated also participated in the Palm Beach County Workforce Housing Exchange program by partnering with two publicly traded homebuilders to absorb their workforce housing requirements. A philanthropic grant will subsidize the construction of additional affordable units. 

In addition to the funding incentives and the first mortgage, the project has received equity investments from a private family office, Affiliated Housing Impact Fund LP and the original property owner, Grace Development. 

“The City of West Palm Beach leadership, along with Palm Beach County, have prioritized the creation of quality workforce housing and recognize how important this type of housing is to the growth of the city and region,” Affiliated Co-Founder Jeff Burns said in a release. “This is yet another prime example of how private and public entities can come together to tackle tough issues.” 

West Palm Beach-based general contractor Verdex Construction is leading construction. The project was designed by the firm’s in-house architecture firm, A+R, an affiliate of Fort Lauderdale-based Rinka+.