Dealmaker: KeyBank Closes $120M for Multifamily Assets
KeyBank Real Estate Capital, Cleveland, originated $120.4 million for two New Jersey affordable housing properties and a 216-unit mixed-income development on Native American tribal lands.
In Newark, N.J., KeyBank Real Estate Capital and KeyBank Community Development Lending & Investment provided a Fannie Mae Healthy Housing Rewards Enhanced Resident Services loan to Omni New York LLC for two affordable housing properties, Garden Spires Apartments and Spruce Spires Apartments. The financing totaled $98.4 million, with a $59 million Fannie Mae Reduced Occupancy Affordable Rehab loan and a $23.8 million Economic, Redevelopment and Growth bridge loan secured by Garden Spires Apartments and a $15.6 million Fannie Mae Affordable Mortgage loan secured by Spruce Spires Apartments.
Key Commercial Mortgage Group Senior Vice President Dirk Falardeau and Key CDLI group Senior Vice President Kyle Kolesar arranged the financing for both properties.
Built in 1963, Garden Spires Apartments is a 544-unit affordable high-rise apartment complex with two 20-story buildings. Spruce Spires Apartments dates to 1920 and has 112 units subsidized with a project-based Section 8 Housing Assistance Payment contract.
Both properties will undergo extensive rehabilitation including renovating lobby areas, replacing building mechanicals, modernizing elevators and installing new roofs and doors. In-unit improvements will include new floors, windows, kitchen cabinets, appliances and countertops.
Both properties will offer resident services supported in part by Fannie Mae’s Healthy Housing Rewards Enhanced Resident Services initiative. Fannie Mae Vice President of Affordable and Green Financing Bob Simpson said the program offers incentives to borrowers who provide resident services including health and wellness programming, nutrition and healthy food access and workforce development at their affordable multifamily properties.
KeyBank Real Estate Capital also provided a $22 million loan to build a 216-unit mixed-income development with six apartment buildings on Native American tribal lands ground-leased by the Kalispel Tribe in Washington.
Sponsor TWG Development, affiliated with the Kalispel tribe, received a forward rate lock loan for Salish Flats in Spokane County. The community is part of the master development plan for the Northern Quest Resort & Casino, owned and operated by the Kalispel Tribe.
KeyBank Real Estate Capital Mortgage Banker Jeff Rodman called the development the first workforce housing multifamily project the firm has funded on Native American tribal land. The loan will fund a 216-unit mixed-income development with six apartment buildings. Income and rent restrictions in the ground lease mean 20 percent of the units will be reserved for residents earning up to 80 percent of the area median income while the rest will be rented at market rates.
The 10-year loan from Freddie Mac, McLean, Va. had a 30-year amortization with an 80 percent maximum loan-to-value ratio.
