Dealmaker: KeyBank Arranges $102M for Affordable Housing

KeyBank, Cleveland, arranged $101.6 million for affordable multifamily housing in five states.

In Denver, KeyBank Community Development Lending & Investment provided $34.1 million in combined financing to Gorman & Co., Oregon, Wis., for The Colburn Apartments. Gorman & Co. will rehabilitate the former hotel at 980 Grant Street into 91 studio apartments.

Kelly Frank of KeyBank’s CDLI team arranged the financing, which included a $10.8 million Low-Income Housing Tax Credit equity investment, a $15 million KeyBank construction loan and an $8.3 million Freddie Mac Tax-Exempt Loan.

Colorado Politics magazine said the 10-story property dates to 1928 and has served as a single-room occupancy building for lower-income residents using Section 8 rent subsidies since the 1990s.

KeyBank Community Development Lending and Investment also closed $42 million in Fannie Mae financing to renovate Twin Parks West, a New York City Housing Authority property in the Bronx, N.Y.

A joint venture development team including Gilbane Development Co., Kraus Management, Apex Building Group and Dantes Partners refinanced the 10-story building’s existing debt. The 311-unit affordable housing property is fully restricted by a new 20-year Section 8 Housing Assistance Payments contract.

Tabare Borbon of KeyBank’s CDLI team arranged the fixed-rate financing with a 15-year term, five-year interest-only period and 35-year amortization schedule.

Jeff Rodman of Key’s Commercial Mortgage Group and Kyle Kolesar of Key’s Community Development Lending group arranged two loans totaling $25.5 million for Harmony Housing for its Fannie Mae credit facility. The two tranches were collateralized by six properties totaling 431 units in Texas, Florida and North Carolina.

The first $17 million tranche refinanced a 295-unit housing portfolio in Texas and Florida. All units in Bent Oaks Apartments, Jacaranda Trail Apartments and Oaks Trail Apartments are reserved for individuals and families earning less than 60 percent of area median income. The second tranche was $8.5 million for a 136-unit North Carolina affordable housing portfolio. All units in Franklin Ridge Apartments, Pirates Moor Townhomes and Wild Geese Landing Townhomes are reserved for individuals and families earning at or below 60 percent AMI.