Financial News
Keybank Secures $104.6 Million of Financing for Two Affordable Housing Properties in Texas
SOURCE: KeyBank
DESCRIPTION:
CLEVELAND, July 12, 2021 /3BL Media/ – KeyBank Community Development Lending and Investment (CDLI) secured $104.6 million of financing for The NRP Group to develop two affordable multifamily housing properties in San Antonio:
- $46.6 million for the 318-unit Seven07 Lofts; and
- $60.6 million for the 348-unit Frontera Crossing.
Seven07 will feature a mix of one- to four-bedroom units that will be restricted to those earning between 40% and 70% of the area median income (AMI). The 100% low-income housing tax credit (LIHTC) project, which will be co-developed with the San Antonio Housing Facility Corporation, will feature amenities in line with market-rate competitors, including a fitness center and pool.
The $32.1 million tax-exempt construction-to-permanent loan and the $14.5 million taxable equity bridge loan are 36-month terms, and the permanent loan is for a 15-year term, amortizing for 40 years after conversion. KeyBank will purchase bonds issued by the Las Varas Public Facility Corporation and make the loan to NRP.
Frontera will comprise 13 three-story residential buildings, a freestanding laundry center and maintenance shop, and a community building. All units will be restricted to those earning 40% to 70% of the AMI. The unit mix includes one-, two-, three- and four-bedroom floor plans.
CDLI will be a co-lender on a $33.7 million tax-exempt construction loan that will be converted into a permanent loan and a $16.6 million taxable equity bridge loan. KeyBank will purchase its pro-rata share of tax-exempt bonds issued by Las Varas Public Facility Corp. and make the loan to NRP. Upon conversion, KeyBank will purchase the other co-lender’s share of the $33.7 million tax-exempt bonds and convert them to a $33.7 million permanent loan. The $16.6 million equity bridge loan will be repaid from low-income housing tax credit equity.
Jason Arechiga, NRP’s senior vice president of development, is proud of both developments and looks forward to contributing to the positive growth in San Antonio.
“With these two community developments, NRP will bring more than 650 affordable multifamily apartment homes to areas of our city seeing monumental growth,” Arechiga says.
Kyle Kolesar of KeyBank’s CDLI team structured the financing for both properties.
The NRP Group is a vertically integrated developer, owner, builder and manager of best-in-class multifamily housing based in Cleveland.
About KeyBank Community Development Lending and Investment
KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank’s platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 10 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act’s passage in 1977.
About KeyCorp
KeyCorp’s roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $176.2 billion at March 31, 2021. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of more than 1,000 branches and approximately 1,400 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com. KeyBank is Member FDIC.
About The NRP Group
The NRP Group is a vertically integrated developer, owner, builder, and manager of best-in-class multifamily housing. Since its founding in 1994, NRP has developed more than 43,000 apartment homes, and currently manages over 23,000 residential units. The company employs the entire breadth of its in-house capability to fulfill its mission: creating exceptional rental housing opportunities for individuals and families, regardless of income.
Through its disciplined approach to vetting opportunities, NRP has established a track record of delivering impressive returns for investors. The company's formidable size and depth of talent provides the experience and infrastructure necessary to execute developments of varying degrees of complexity and scope in both urban-infill and suburban locations, including market-rate, affordable, and senior housing. As a three-time recipient of the National Association of Builders Multifamily Development Firm of the Year and recognized Top 25 Developer by Multifamily Executive, NRP is leveraging its decades of expertise by also providing construction and property management services to outside owners and developers. For additional information, visit www.nrpgroup.com
KEYWORDS: NYSE:KEY, keybank
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