Dealmaker: Keybank Arranges $137M for Multifamily

KeyBank Real Estate Capital, Cleveland, arranged $137.2 million for Massachusetts and Ohio multifamily assets.

In Randolph, Mass., the firm arranged a $50.2 million Freddie Mac first mortgage for recently constructed Residences at Great Pond. The 234-unit mid-rise apartment property includes four six-story buildings on 16.7 acres.

Dirk Falardeau of Key’s Commercial Mortgage Group arranged the non-recourse, fixed-rate loan with an 11-year term, seven-year interest-only period and 30-year amortization schedule. The Freddie Mac financing repaid the $39.7 million construction loan originated by Matt Purtell of KeyBank’s Income Property Group in Boston.

KeyBank Real Estate Capital and KeyBank Community Development Lending and Investment also provided $87 million in financing to a Related Cos. subsidiary for more than 400 Cincinnati, Ohio, affordable housing units.

Related Affordable, Related Cos. affordable housing division, is the largest preserver of affordable housing in the U.S. It said it plans to keep all 409 units affordable for families earning up to 60 percent of area median income.

Avondale Properties is a 209-unit Section 8 portfolio with four developments known as Burton Apartments, Entowne Manor, Founders Home and Georgia Morris. Alms Hill Apartments contains 200 affordable units. Between the two developments KeyBank provided $21 million in Low-Income Housing Tax Credit equity, $38 million in construction financing and $28 million in Fannie Mae mortgage-backed securities as Tax-Exempt Bond Collateral forward commitments. KeyBanc Capital Markets underwrote the publicly offered tax-exempt bonds, issued by the Ohio Housing Finance Agency.

Both properties are more than 43 years old and Related Affordable plans renovations to improve resident quality of life including upgrading access controls and security systems, modernizing the elevator and fire alarm systems, replacing the boiler systems and improving accessibility access.

Victoria O’Brien and Kyle Kolesar of Key’s Community Development Lending and Investment group, Falardeau of KeyBank Real Estate Capital and Sam Adams of KeyBanc Capital Markets arranged the financing.