KeyBank Community Development Lending and Investment provided $11.3 million for 9% tax credit equity to finance the new construction of Garrett Square Apartments, a 49-unit affordable seniors housing project in the Glenville neighborhood of Cleveland, Ohio.
KeyBank will provide a $9 million construction loan and a $2.3 million permanent loan. Additional permanent financing sources include secondary soft loans of $1.7 million provided through the City of Cleveland’s American Rescue Plan Act, $900,000 from City Home and $450,00 from the County ERA fund.
Garrett Square will be a four-story midrise building serviced by two elevators located at 1282 E. 125th & 12417 Superior Avenue in Cleveland, available to seniors aged 55 and older. The site is currently occupied with a parking lot and vacant freestanding retail building which will be razed prior to development. The immediate neighborhood consists of single-family homes and commercial uses, with access to public transit and shopping. The project will be partially subsidized with 19 units (39% of the total units) supported by 20-year Project Based Vouchers provided through Cuyahoga Metropolitan Housing Authority (CMHA).
The project sponsor, Volker Development Inc (Volker), is owned and run by a team of experienced real estate development professionals headquartered in Wisconsin with a focus on affordable multifamily projects. Marous Brothers Construction is the general contractor for the project and is one of the leading construction firms in the Midwest.
The Famicos Foundation, a nonprofit organization with more than 20 years of experience managing affordable housing properties, will serve as the property management company of Garrett Square. Famicos will also offer supportive services to enhance resident autonomy, self-determination, and independence.
Derek Reed and Greg Kiger of KeyBank CDLI structured the tax credit equity and debt financing for the transaction.
