Plantation Development Shrinks 25% Amid Rent Stagnation
Related Group and BH Group are scaling back their Plantation City Center mixed-use development from 512 to 385 residential units. The downsizing could reflect broader challenges in South Florida's apartment market where rent growth has stalled.
Major developers Related Group and BH Group are reducing the scope of their Plantation City Center project by 25 percent, cutting planned residential units from 512 to 385 amid challenging market conditions in South Florida's multifamily sector.
The revised proposal, scheduled for presentation to Plantation's city council Wednesday, represents a significant scaling back of the mixed-use development planned for the 16.8-acre site at 8601 West Sunrise Boulevard. The developers originally received approval in 2024 for the larger project but are now responding to market realities.
Under the new plans, the development will feature 385 residential units comprising 16 for-sale townhomes, 180 one-bedroom apartments, 150 two-bedroom units, and 39 three-bedroom apartments. Ten percent of rental units will be reserved for residents earning up to 120 percent of area median income. The project also reduces retail space from nearly 25,000 square feet to 12,100 square feet, while parking decreases from 833 spaces to 610.
Arquitectonica designed the revised project, which includes a four-story building, three three-story apartment structures, and townhouses. Amenities will feature a pool, fitness center, and pickleball courts. Related Group, led by the Pérez family, and Isaac Toledano's BH Group purchased the development site for $13 million in 2023.
Despite current headwinds, Related and BH continue pursuing major projects throughout South Florida. The partnership recently secured $360 million in construction financing for Icon Beach Waterfront Residences, their planned two-tower Hollywood condominium development. In March, they obtained $200 million in construction funding for the proposed Ritz-Carlton Residences in West Palm Beach.
The frequent collaborators maintain billions in development pipeline across the region, positioning them as significant players in South Florida's real estate market. However, multifamily transaction volume has declined substantially, with CoStar data showing a 26 percent year-over-year drop in deal activity during the first quarter.
