KeyBank Real Estate Capital and KeyBanc Capital Markets secured $31 million of financing for Columbus, Ohio-based National Church Residences, the nation’s largest not-for-profit provider of affordable senior housing and services, to renovate an affordable senior housing property in Cleveland.
Built in 1976, the 171-unit Carnegie Tower at Fairfax is a 12-story, project-based Section 8 apartment building on 2 acres of land next to the Cleveland Clinic. The units are available in one- and two-bedroom configurations.
The handicap-accessible property features on-site security, management and a service coordinator, along with 24/7 emergency maintenance. The project will preserve the building as affordable housing and ensure the long-term viability of the development.
KBREC provided $14 million of permanent financing via a U.S. Department of Housing and Urban Development 221(d)4 construction-to-permanent loan, and KBCM sold $17 million of required tax-exempt bonds. Additionally, KeyBank Community Development Corporation provided $10 million of low-income housing tax credit equity to purchase credits awarded to the project.
The permanent loan is structured with a fully amortizing 40-year term.
Robbie Lynn of KBREC’s Commercial Mortgage Group and Kelly Frank and Ryan Olman of KeyBank’s Community Development Lending and Investment team structured the financing. Sam Adams of KBCM led the sale and structuring of the publicly offered tax-exempt bonds.
