CLEVELAND — KeyBank Community Development Lending and Investment (CDLI) has provided $11.3 million for 9 percent tax credit equity to finance the construction of Garrett Square Apartments, a 49-unit affordable seniors housing project located in the Glenville neighborhood of Cleveland.
KeyBank will provide a $9 million construction loan and a $2.3 million permanent loan. Additional permanent financing sources include secondary soft loans of $1.7 million provided through the City of Cleveland’s American Rescue Plan Act, $900,000 from City Home, and $450,000 from the County ERA fund.
Garrett Square will be a four-story building serviced by two elevators available to seniors age 55 and older. The site is currently a parking lot and vacant freestanding retail building, which will be razed prior to development.
The immediate neighborhood consists of single-family homes and commercial uses, with access to public transit and shopping. The project will be partially subsidized with 19 units (39 percent of the total units) supported by 20-year project-based vouchers provided through Cuyahoga Metropolitan Housing Authority (CMHA).
The borrower is Volker Development Inc. Marous Brothers Construction is the general contractor for the project. The Famicos Foundation will be the operator upon completion. Famicos will also offer supportive services to enhance resident autonomy, self-determination and independence.
Derek Reed and Greg Kiger of KeyBank CDLI structured the tax credit equity and debt financing for the transaction.