KeyBank Provides $11.3M Acquisition Financing for Somerset Tower Plaza in Wichita

WICHITA, Kan. — KeyBank Community Development Lending and Investment (CDLI) has provided an $11.3 million tax-exempt construction and permanent bond loan for the acquisition of Somerset Tower Plaza in Wichita.

Steele Properties plans to renovate the 100-unit affordable seniors housing community. The city of Wichita issued the bonds, and the National Development Council provided $4.2 million of Low-Income Housing Tax Credit equity.

Originally constructed in 1979, the seven-story Somerset Tower Plaza is located two miles from the Wichita Central Business District. The renovation will include exterior upgrades and life-safety improvements. The project will benefit from a U.S. Department of Housing and Urban Development Section 8 rental subsidy contract on all units, which will preserve the housing as affordable for very low-income tenants.

Sarah Geis and Tim Gerstmann of KBREC’s CDLI team structured the financing.