KeyBank Community Development Lending and Investment secured $27.7 million of construction financing, $13.2 million of 4 percent low-income tax credit equity and $18.4 million of Freddie Mac forward tax-exempt permanent financing on behalf of Herman & Kittle Properties to develop an affordable housing property in Indianapolis.
The Reserve at White River will comprise two four-story, elevator-serviced residential buildings; 14 cottage-style, single-story buildings; and a 5,000-square-foot clubhouse on 11 acres of land. The project will use income averaging to qualify all units for tax credits, with:
• 150 units (71%) set aside for tenants earning 60% area median income (AMI);
• 51 units (24%) set aside for tenants earning 50% AMI; and
• nine units (4%) set aside for tenants earning 70% AMI.
The project will be 100% age restricted to seniors (55 and older), with 21 of the units being fully accessible for tenants with special needs. The unit mix consists of 144 one-bedroom and 66 two-bedroom units. The property will be encumbered by a standard land use restriction agreement, which will be set with a 15-year compliance period and an additional 15-year extended-use period.
“KeyBank consistently delivers for HKP and, despite headwinds due to COVID-19, helped our team close the Reserve at White River in Indianapolis to provide much-needed senior affordable housing!” said Jeff Kittle, President and CEO of Herman & Kittle.
The Indiana Housing & Community Development Authority issued multifamily housing revenue notes to finance the tax-exempt portion of the project.
Kyle Kolesar and Victoria O’Brien of KeyBank CDLI and Robbie Lynn of Key’s Commercial Mortgage Group structured the financing.