KeyBank, Cain Brothers Secure $27.8M in Financing for Affordable Development in Indiana

MISHAWAKA, Ind. — KeyBank Real Estate Capital and Cain Brothers have secured financing for the construction of Hellenic Senior Living of Mishawaka, an affordable assisted living facility in Mishawaka, located just east of South Bend near the Michigan border.

The community’s 136 units will be available to seniors who earn 60 percent or less of the area median income (AMI). 

The project totals 113,000 square feet and will be enrolled in Indiana’s Home and Community-Based Services (HCBS) Medicaid Waiver Program, which will allow tenants to pay for assisted living services through Medicaid. The monthly charges for the Medicaid waiver units range from $2,881 for a studio to $3,378 for a one-bedroom unit.

The Project budget was approximately $28 million and included multiple funding components of debt and equity. Cain Brothers served as the sole managing underwriter of an $18.5 million tax-exempt bond issue that provided non-recourse construction and permanent financing at a long-term fixed rate of 5.75 percent. 

In addition, affordable housing investor NDC provided $9.3 million in Low-Income Housing Tax Credit (LIHTC) equity. Key Community Development Corp. is an investor member of NDC’s LIHTC fund that provided the equity for the project.

The developer for the Project is AHEPA National Housing Corp., which currently manages 94 apartment buildings in 22 states, primarily for affordable seniors housing. The project will be operated by Gardant Management Solutions, the largest manager of affordable assisted living communities in the country with 57 supportive and assisted living communities totaling over 5,600 units.