KeyBank provides $21.4 million first mortgage for 184-unit apartment complex in Ypsilanti

KeyBank Real Estate Capital arranged a $21,472,000 non-recourse, Fannie Mae first mortgage loan secured by a 184-unit, apartment complex known as Schooner Cove III in Ypsilanti, Michigan.

The fixed rate loan is structured with a 15-year term, and subsequent to a 120-month interest only period, amortizes on a 360-year schedule.

Built in 1995 and renovated in 2018, Schooner Cove III is a lakeside community situated on Ford Lake. The 13 three-story residential buildings consist of affordable units that include studio, 1, 2, and 3-bedroom apartments.

The Property operates under a Regulatory Agreement/Restrictive Covenant Low Income Housing Tax Credit Agreement dated December 26, 1996, with the Michigan State Housing Development Authority (“LIHTC”) and 100% of the units are restricted to tenants whose income is 60% or less of AMI.

McKinley Companies has owned and operated affordable and workforce housing communities in Ann Arbor since 1968. McKinley specializes in value-added acquisitions and redevelopment of multifamily communities and is a generational long-term holder of its real estate. It is currently the largest owner of workforce housing in the Ann Arbor and Orlando markets with 500 full time team members and total assets in excess of $3 billion.

Samantha Miller and David Baker from Key’s Commercial Mortgage Group arranged the financing.