KeyBank Arranges $31M Financing for Affordable Housing Renovation in Cleveland

CLEVELAND — KeyBank Real Estate Capital (KBREC) and KeyBanc Capital Markets (KBCM) have secured $31 million of financing for National Church Residences, which will use the funds to renovate an affordable seniors housing community in Cleveland.

Built in 1976, the 171-unit Carnegie Tower at Fairfax is a 12-story, project-based Section 8 apartment building on two acres adjacent to the Cleveland Clinic. The units are available in one- and two-bedroom configurations. 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 Corp. 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.